J

Novated Leasing

Introduction & Purpose

  • Introduction by Jas from Maxxia’s Novated Leasing team.
  • Goal: to guide the customer through the novated leasing process, personalize a lease estimate, discuss vehicle options and savings, and provide a comprehensive summary via email.
  • Jas acts as a dedicated leasing partner, handling the complexities and securing the optimal deal.

Step 1: Quick Eligibility Check

  • Check eligibility with simple questions, ensuring a low-pressure experience.
  • Questions include:
    • Pay frequency (weekly, fortnightly, or monthly)
    • Gross annual salary (pre-tax, excluding super)
    • Employment status (full-time, part-time, or casual)
    • Probationary period status
    • Current salary packaging arrangements
    • Citizenship/residency status
  • Goal: ensure clarity and confidence in understanding how novated leasing benefits the customer.

Step 2: What Is a Novated Lease?

  • Definition: A novated lease bundles car expenses into a single pre-tax salary deduction.
  • Inclusions:
    • Registration
    • Servicing
    • Fuel
    • Tyres
    • Insurance
    • Car washes and roadside assistance
  • Benefits:
    • GST savings.
    • Potential tax benefits.
    • Simplified budgeting with one deduction.
  • The leasing amount can be paid with pre-tax dollars.
  • Level of service from Maxxia includes handling everything from sourcing to settlement, with ongoing support.

Step 3: Getting to Know You

  • Personalize the lease based on individual needs and preferences.
  • Inquiries:
    • Vehicle purpose (family, commute, new beginning)
    • Desired vehicle type (hatchback, SUV, ute)
    • Vehicle condition (new, used, private sale, or leaseback)
    • Fuel type (petrol, diesel, hybrid, or electric)
    • Essential features (CarPlay, leather seats, sunroof)
  • Vehicle Sourcing: Maxxia can source vehicles through its fleet network, providing GST benefits and handling negotiations.
  • Benefits:
    • National fleet pricing and GST exemptions.
    • Handling of all paperwork.
  • Consideration of trade-in options.
  • Explanation of the Fringe Benefits Tax (FBT) method.
    • Fully electric vehicles (EVs) may qualify for 100% pre-tax benefits.
    • A blended post-tax method is used for other cars to minimize FBT and maximize savings.
  • Flexibility to cover upfront costs with trade-in value.
    • First car insurance premium.
    • Optional accessories.
    • Loan or finance payout on the old vehicle.
    • Holding deposit.
    • Gap between trade-in value and chosen car price.
  • Adaptation to customer tone and pace for effective communication.

Step 4: Trade-In & Timing

  • Trade-In Handling: Maxxia can arrange trade-ins through dealerships; the trade-in value does not reduce the lease amount but provides cash to the customer.
  • Finance Application: Complete the finance application within 48 hours to expedite the process.
  • Pre-approval Benefits:
    • Locks in pre-approval for 180 days.
    • Repayments commence after car delivery.

Step 5: Benefits of Leasing

  • Financial Benefits:
    • Fleet discounts on dealership-sourced vehicles.
    • Potential GST savings of up to 6,334 on dealership-sourced cars.
    • GST reimbursement on running costs.
    • Potential income tax savings.
  • Convenience:
    • One simple, pre-budgeted deduction.
    • Tracking via the Maxxia app.
    • Management of vehicle sourcing, negotiation, paperwork, and delivery.
  • Expert Support:
    • Dedicated consultant.
    • MyCar team checks servicing quotes.

Step 6: Lease Length, Residual, & Flexibility

  • Lease Terms: Terms range from 1 to 5 years, influencing repayment and residual values.
    • Shorter terms: higher repayments, lower residual.
    • Longer terms: lower repayments, higher residual.
  • Novated leases are not intended to be finished early, as the payout figure can be more than the value of the vehicle.
  • Residual Values:
    • 1 year: 65.63
    • 2 year: 56.25
    • 3 year: 46.88
    • 4 year: 37.5
    • 5 year: 28.13
  • Options at Lease End:
    • Pay the residual to own the car.
    • Extend the lease.
    • Trade-in and upgrade.
  • Portability: Leases can be transferred to another Maxxia-supporting employer, subject to approval.

Step 7: Insurance

  • Comprehensive Insurance:
    • Required for a fully maintained lease.
    • Options: Maxxia’s Allianz insurance or arrange own insurance.
  • Maxxia’s Allianz insurance benefits include new-for-old replacement, hire car, open driver, windscreen replacement annually, and first year of insurance is arranged for you.. Optional Add-Ons:
    • Total Loss Assist: Covers shortfall if the car is written off.
    • Lease Protection: Covers the lease if made involuntarily redundant.
    • Guaranteed Buyback: Protects against resale value falling short of the residual.

Step 8: Next Steps

  • Finance application and car sourcing.
  • Email with personalized estimate and finance application link.
  • Follow-up scheduling to review the application and vehicle sourcing.

Wrap-Up

  • Reiterate the personalized setup, numbers, and end-of-lease flexibility.
  • Offer ongoing support and contact for any questions.

Quick FAQ Cheat Sheet

  • What is a novated lease?
    • A salary packaging option that lets you lease a car using your pre-tax income, potentially saving thousands. Maxxia manages the lease, running costs, and admin. GST is not paid on the car or its running costs.
  • How do I save money?
    • Pay part of the lease with pre-tax salary, reducing taxable income and covering running costs. There will be no GST on the car or its running costs.
  • Do I have to choose a car before applying?
    • No, the finance approval lasts 180 days, allowing you to apply first and shop later. You can also get help sourcing a vehicle.
  • Can I source my own car?
    • Yes, but Maxxia-sourced vehicles come with fleet discounts and full support. Used cars must be under 12 years old by lease end.
  • When do deductions start?
    • Not until you get the car; includes a 4-day deferment after delivery.
  • What’s the residual value and why does it exist?
    • A set amount left unpaid at the end of the lease, determined by the ATO. Options include trade-in, refinance, or paying it out.
  • What’s included in the lease?
    • Flexible; generally includes finance, servicing, registration, fuel or EV charging, tyres, comprehensive insurance, and roadside assist.
  • What are the lease terms?
    • Typically 1 to 5 years; longer terms mean cheaper fortnightly deductions.
  • What if I leave my employer?
    • Options: pay the lease directly, payout or refinance the car, or transfer the lease to another Maxxia-supported employer.
  • Is there a catch?
    • No catch, just structure. Flexible solutions are available if your situation changes.
  • How much can I borrow?
    • Pre-approval confirms your approved amount for exploring options within budget.
  • Can this be a family car?
    • Yes, many customers lease family-friendly vehicles like 7-seaters, SUVs, or hybrids.

Maxxia Value Proposition

  • Personal Leasing Concierge: Dedicated consultant ensures optimal deals with fleet pricing, tax perks, and no dealership runaround.
  • Simpler Explanation of Leasing: Bundled car loan with running costs (fuel, rego, insurance) paid pre-tax from salary, saving thousands.
  • Commission-Linked Selling:
    • Fleet discounts and coordinated vehicle sourcing.
    • Allianz insurance fully maintained within the lease budget.
    • Optional add-ons for redundancy or write-off coverage.
    • Trade-in assistance with cash back.

Customer Success Mini-Stories

  • Teacher saved 6,000 on a Kia EV6 with quick delivery.
  • Customer covered startup costs and saw significant GST savings using trade-in.

Reassurance and Support

  • Post-Delivery Support: Continuous support for maintenance, reimbursements, servicing approvals, and renewals.

“Which Lease Option Is Right for Me?” Guide

  • Maxxia-Sourced: Brand new, fully covered, fast delivery.
  • Sale & Leaseback: Keep current car and free up cash.
  • Private Sale Lease: For customers who have already found their dream car.

Maxxia Myths Busted

  • Myth: You have to lock in a car before applying.
    • Truth: 180 days to choose after finance approval.
  • Myth: You lose money leasing.
    • Truth: GST exemptions, pre-tax savings, and fleet discounts save thousands.

Potential Savings

  • GST exemptions alone save most people between 3,000 to 6,000, with more savings from insurance and bundling.

Overcoming Objections: