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: