After advice or opinions on novated lease

[KEN60L]

Hi All

Back in october i decided to trade the old rig in and go for a company car.. So i spent a few weeks going over our company's motor vehicle policy and novated lease agreements. Rang and asked about aftermarkets mods etc.. all was good.

End of october i applied for the novated lease. Black ve ss ute wit tint windows, leather seats and hard top all the options i could include wit the lease. As for any after market stuff i was told i had to pay for in after tax dollars. Mid november was told successfull after the normal 3 wk process of application and vehicle was ordered.

Now wen i organised aftermarket rims and lowering to be done. The leasing company tells me its not allowed and the company i work for wont insure the vehicle. As they provide the insurance. So i spoke to HR and said ive read the motor vehicle policy and it states im allowed to arrange a external comprehensive insurance through a market insurer arranged by custom fleet.

Team members who adopt the external insurance option offered by custom fleet will be subject to the terms and conditions of the third-party insurance policy and will not be subject to the restricitions in this policy..

But the bluntly told me the only ones allowed to insure the vehicle is the insurance they offer or custom fleets insurance.. no market insurer allowed..

And my problem is neither will allow me to put aftermarket rims on or lower vehicle.. The two week cooling period has also expired so now im stuck wit the lease.

Is it just me or are they allowed to do this to me? the company's motor vehicle policy cleary states that im allowed a market insurer..

Ken

[EXCESSV]

you should be able to go for a market insurer...especially since its clearly written there.

i have a novated lease and gone with my own insurer and do all the mods i want...
i just put in a claim form to the novated lease company for the insurance and they reimbursed me the amount for insurance

[LS2_307]

you should be able to go for a market insurer...especially since its clearly written there.

i have a novated lease and gone with my own insurer and do all the mods i want...
i just put in a claim form to the novated lease company for the insurance and they reimbursed me the amount for insurance

Sorry to highjack the thread
Dean, can you pm me about obtaining a radar detector at the right price?
btw, your cars dirty, saw it at your parking spot today(I work at Quadrant)

VE-HSV-R8

[KEN60L]

Custom fleet were happy to find me a market insurer to accomodate the things i wanted done and bundle it in my package. They told me my monthly lease payments would be a bit more but i said no worries.. Its the company i work for the blunty said no way.. which i cant understand how they can do that wen it cleary states in there policy that im allowed..

[EXCESSV]

Custom fleet were happy to find me a market insurer to accomodate the things i wanted done and bundle it in my package. They told me my monthly lease payments would be a bit more but i said no worries.. Its the company i work for the blunty said no way.. which i cant understand how they can do that wen it cleary states in there policy that im allowed..dont worry about ur work...ur contract is between u and the lease company...

ur work would have given the lease company complete permission to deal with u directly and on ur behalf...
if the lease company say ok...then do it i say...

but up to u mate

Sorry to highjack the thread
Dean, can you pm me about obtaining a radar detector at the right price?
btw, your cars dirty, saw it at your parking spot today(I work at Quadrant)

VE-HSV-R8will send ya pm...and yes its dirty as was too hungover on new years morning to clean it :lmao:

[COSMOS]

the only aspect of the lease that has anything to do with your employer is the novation... that is their promise to the lease company that whilst you are an employee of theirs they will deduct the lease payments from your gross wage and pass them to the company.

They have as much right to tell you who you can insure with and what wheels you can put on as I do.

Ring the ATO and get clarification on the rights of the employer in novation agreements. Also it helps if you can find anyone else who works with you who has been allowed to get their own market insurance.

Also submit in writing a request for your employer to clarify why they are breaching their own lease policy in your case, and ask them to provide this decision to you in writing. I suggest if you are dead set on the wheels and lowering you could take this response to a solicitor and get a nasty-gram typed up for the company to digest.

THIS is the reason why I have stopped leasing - what I do with my car is my business, not my employer and not a damn lease company. Now I keep a log book and record my business v private klms and claim the relative costs at years end. I dont have to drive useless klms and I can put whatever I want on my ride.

[KEN60L]

Ill email my consultant now and see what i can work out.. thanks for the advice.. hopefully they will allow to go ahead..

[Timmay5.7]

but up to u mate
will send ya pm...and yes its dirty as was too hungover on new years morning to clean it :lmao:
A dirty car is a much better option than last new years Dean!! :)

[EXCESSV]

A dirty car is a much better option than last new years Dean!! :)true timmay true....:bawl:

[VT2_SS]

what you can or can't have n a novated lease is determined by your employers policy.

From an ATO perspective, its the basic finance arrangement (ie the lease) that's novated. How the running costs, insurance etc are bundled is an employer decision - ie policy rather than a legal / tax issue.

In simple terms, you could have a "clean" funding arrangement only, and the employee could pay all the running costs etc from their own pocket. Most employers (and fleet companies) don't like this because it makes the FBT administration messy - the running cost information has to be provided by the employee. The fleet management companies tend to promote the "full package" concept to the employers as it makes for easier administration which usually means less flexibility.

The main advantage with the novated lease is for people who do not have any business km use and cannot claim any running costs for tax purposes. A novated lease takes advantage of the differential between the FBT tax rate, and the marginal income tax rate. It does not matter that all the km's travelled are for private purposes.

cheers.

[KEN60L]

what you can or can't have n a novated lease is determined by your employers policy..

exactly.. and in my case they a breaking their own rules.. the poilcy cleary states im allowed a market insurer.. but their tellin me no.. abit of double standard i think.. hopefully itll get sorted out..