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Non-Maintained Novated Lease vs. Fully Maintained Novated Lease

Non-Maintained Novated Lease vs. Fully Maintained Novated Lease
"""Novated lease is regarded as a financially beneficial method of securing your dream car. A novated lease can be of two types. There are two types of leases: fully maintained and non-maintained. Both leasing options enable you to obtain the vehicle of your choice through salary sacrifice and tax benefits. One, however, is more financially rewarding than the other. Let us distinguish between the two in this article.

What is the definition of a fully maintained lease?

Fully maintained novated leases were created with the driver in mind. In this contract, a predetermined amount is deducted from your wages before tax in each pay cycle to cover the lease expense, operating costs of your vehicle, and any FBT payable.

The operating expenses included in your lease payment are reviewed on a regular basis to ensure a balanced amount. If your vehicle costs more to operate than expected, you will be required to add a top-up to your leasing account to make up the difference. If, on the other hand, the amount deducted from your salary as an operating expense exceeds your actual expenses, you will be reimbursed.

A fully leased vehicle also includes several day-to-day inclusions that can help you save even more money.

You can basically use a fuel card to fill up. Simply presenting your card at participating service stations allows you to purchase fuel quickly without having to pay cash out of your pocket.

You can contact a 24-hour roadside assistance service for assistance if you have a dead battery, a flat tire, or something more serious.
High maintenance anxiety is avoidable. Your car's maintenance is paid for with funds already deposited into your salary packaging account, ensuring that you receive pre-negotiated discounts on labor and parts costs that are in line with the manufacturer's recommendations.

A fully maintained novated lease makes life even easier.

What exactly is a non-maintained lease?

Meanwhile, on a non-maintained novated lease, a pre-determined amount is deducted from your wages each pay cycle to cover the least amount of vehicle costs and any other FBT payable. In contrast to a fully-maintained novated lease, you only pay for service and maintenance costs as they arise. This plan allows you to receive tax benefits while paying for your car via salary packaging, while also giving you complete control over your service fee, maintenance, and other operating expenses."""

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"Non-Maintained Novated Lease vs. Fully Maintained Novated Lease" was written by Mark under the Finance category. It has been read 98 times and generated 0 comments. The article was created on and updated on 13 January 2023.
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