CONSUMER FIXED RATE LOAN
Our Consumer Fixed Rate Car Loan can get you into the Lexus you want with flexible options that can be tailored to suit your needs.
A CONSUMER FIXED RATE CAR LOAN OFFERS YOU THE FOLLOWING BENEFITS:
- The security of a fixed interest rate for the term of the vehicle loan.
- A choice of vehicle loan terms, ranging from 1-7 years.
- Your choice of flexible payment options.
- Financing of vehicles up to 7 years old.
- Finance for both Lexus and non-Lexus vehicles.
- Flexible deposits.
- The ability to make extra repayments, reducing the total interest payable.
- The option to include a balloon final payment, which reduces monthly repayments.
- Extra costs can be included in the amount financed, including on-roads, stamp duty, insurance, warranty and roadside assistance.
- Always know exactly how much you have to pay, making budgeting easier.
- You own the vehicle while Lexus Financial Services (LFS) has a mortgage over it.
FREQUENTLY ASKED QUESTIONS
WHAT DO I NEED TO CONSIDER WHEN TAKING OUT A NOVATED LEASE?
- What type of car do you want?
- Check out your employer's policy on novated leasing
- Decide how much you can afford
- Think about car options and accessories
- Estimate how many kilometres you'll travel each year (private and business)
- Decide on a lease term that suits you
- Consider independent financial advice
WHAT IS INCLUDED IN A NOVATED LEASE?
- Vehicle price and accessories
- Dealer delivery charges
- First year registration and CTP insurance
- Purchase stamp duty
- Novated lease establishment fee
- Personal Property Security registration fee
- Luxury Car Tax (if applicable)
- Mechanical repairs, maintenance and servicing
- Replacement tyres
- Roadside assistance
- Comprehensive insurance
- Registration/CTP renewals
Lexus Financial Services also offers novated lease protection insurance as an optional extra. That way, if you aren't able to work, your lease will continue to be paid for up to six months, with a hand-back option if you don't gain employment within that time.
- Insurance excess
WHAT IS FBT?
As a result, two types of tax apply: Income Tax for your cash salary and fringe benefits tax (FBT) for your car.
There are two ways to calculate FBT on vehicles: The Statutory Method and the Operating Cost Method.
The Statutory Method uses the value of your car as a basis for calculating the taxable value. It doesn't take into account private vs. business usage, and the amount of FBT doesn't change. This method is popular for novated leases, as many employees use their car for little or no business use.
Under the Statutory Method, your employer can offset your FBT liability by making after-tax contributions towards the vehicle's running costs, equivalent to the FBT liability. This is called the Employee Contribution Method. It means an amount will be set up and deducted from both your pre-tax and post-tax income to offset the FBT liability. This has greater tax benefits if your salary is below $180,000.
The Operating Cost Method calculates the FBT liability using the total costs of operating the car over the year. FBT is then payable on the portion of private use. This means the driver will need a logbook to work out the private vs business use. This method is suited to employees who use the car predominantly for business as it can work out cheaper than the Statutory Method.
Your FBT status may differ if you work in specific industry sectors such as not for profit and medical. If you are unsure of your FBT status, please contact us to clarify.
WHAT HAPPENS IF I CHANGE EMPLOYERS?
Your new employer will need to agree to and sign the novation agreement.
If your new employer does not wish to enter in to a novation agreement, your services will cease and you will be required to continue lease payments from your after-tax salary. Alternatively, you can pay out your lease or refinance with a consumer loan.
Talk to us about how we can help.
The information provided by Lexus Financial Services, a division of Toyota Finance Australia Limited ABN 48 002 435 181, AFSL and Australian Credit Licence 392536 is of a general nature and for information only. Nothing on this website constitutes or should be considered to constitute legal, taxation or financial advice. Before making a decision about any of the products and services featured on this website, you should consult with your own independent legal, taxation and financial advisors, who can advise you about your personal circumstances.