List of All FAQs

Novated Leases are an agreement between the employer, the employee and the financier of the vehicle. The employer pays the repayments on behalf of the employee. The employer then pays the costs from the employee's pre-tax salary for the duration of the loan or their length of employment. This could give the employee tax benefits compared to other types of vehicle finance.

The key difference between a Novated Finance Lease and Novated Operating Lease is that Volkswagen Financial Services carries the residual value risk in cases of an operating lease.

This is not the case for a Novated Finance Lease where you will have to pay any shortfalls at the end of the term. Also with a Novated Operating Lease your repayment can also include the vehicle's running costs and Maintenance.

If you leave your workplace before the lease has expired, you’ll be personally responsible for making the remaining lease payments, or you will need to make a new agreement with your new employer.

FBT, or fringe benefits tax, is a Commonwealth government tax on any employee benefits that aren’t part of your salary, such as a work vehicle. FBT is calculated each year from 1 April to 31 March. Employers pay the FBT then generally charge it back to the employee as an extra pre-tax payment.

Volkswagen Financial Services is happy to help you with a Novated Lease on any make or model of car. It doesn't even need to be a Volkswagen Group brand vehicle!

One of the great things about Novated Leases is that there are only a few restrictions around the types of vehicles. Your employer might have some rules of their own about the type of vehicle you can have, so it's best to check your company policy too.

ECM stands for ‘Employee Contribution Method’. This means that you pay your vehicle costs in full or part from your after-tax salary, which can reduce the FBT due on your salary packaged vehicle.

Fleet management is the group of services used to create and maintain a vehicle fleet. This can include everything from the acquisition of vehicles, to service and maintenance, fuel management, road side assistance, registration and accident management and a range of reporting.

Volkswagen Financial Services manages all this and more, using partnerships and market expertise to ensure your fleet is working hard for your business so you can focus on more important things.

We have a fully maintained fleet management package which is a holistic offering where we manage everything for you. If you're only looking for specific services, we can customise a suitable package for you.

We can provide fleet management services for any sized fleet, from 5 cars to 5,000. It all depends on what your needs are and whether your financials support your Credit Amount. Call us today to discuss how we can make managing your fleet easy.

Volkswagen Financial Services offers FBT reporting as one of its services, and we can manage this for your fleet should you include it in your package. We can provide analysis and strategic planning to help you manage your FBT liability, and also generate any required FBT or Employee Summary reports.

We offer Operating Leases and Finance Leases for company fleets. For individuals, we have Novated Leases.

The difference is primarily an accounting one, and the choice to use one or the other depends on your business needs. These are the key differences:

Ownership: In a Finance Lease, the property is transferred at the end of the lease term from the financier to your business. In an Operating Lease, the financier retains ownership during and after the lease.

Residuals & Balloons: With a Finance Lease the RV is set by the ATO and at the end of the term the RV becomes the responsibility of the customer to either payout, trade-in or refinance.

With an Operating Lease the RV is set by the financier, and at the end of the term the vehicle is returned to the dealership and inspected. Once the vehicle passes inspection the customer is then able to finance a new vehicle. If the vehicle has damages outside of the Wear and Tear Guide the customer may be billed for damages.

Running Costs: Finance Leases generally do not include the running costs of a vehicle unless recharged, while Operating Leases can include all services and maintenance in the one monthly payment, which is calculated through the average kilometres travelled each year and the term of the loan chosen.

Accounting: Vehicles on a Finance Lease are included as an asset to the company, whereas those on an Operating Lease are off balance sheet funding and don’t not show up on your balance sheet as asset or liability.

No, Volkswagen Financial Services is an independent lender and not beholden to any other financial institutions. It's a subsidiary of Volkswagen Financial Services AG based in Braunschweig, Germany. Volkswagen Financial Services AG is the largest automobile financial services provider in Europe and operates in 38 countries around the globe with over 9,000 employees.