Maxxia Lifestyle Lease
What is a Lifestyle Lease?
I own my car. Why would I want to start paying interest again, when I’ve already paid it once?
Why would I make the switch if the interest rate is higher than my loan?
Why would I want a balloon payment on a lease from a car I already own?
While this is a factor to take into account, there are many other matters to consider, including the set-and-forget convenience of having five years of running costs pre-budgeted for, and the potential savings that come through paying for your car with your pre-tax salary.
And at the end of the lease, we will be in touch to discuss your options, which include the option of upgrading to a new car, or refinancing any residual payment in the process.
I prefer vehicle ownership over leasing – why should I lease?
What’s the catch – surely you’re not doing this for nothing?
What information do I need before I call?
In order to “compare apples with apples” it’s helpful to have some information handy relating to your car and your driving habits.
- Running costs. Go back through your statements to get an idea of your annual car expenses, including fuel, tyres, maintenance, insurance, registration. Then use this information to complete our Running Cost Calculator.
It would also be great to know:
- How many kilometres you travel.
- How much you owe on your car.
- Your current interest rate, and the term left on your current finance arrangement.
Why is my Lifestyle Lease estimate higher than my finance estimate?
Finance estimates only cover the costs associated with repaying your car. All your other vehicle expenses – fuel, rego, insurance, maintenance and the like – are to be paid in addition to a loan, and at different times throughout the year, which can make budgeting difficult.
In a Lifestyle Lease estimate, all your repayments and running costs are included, making for easy budgeting and reducing bill stress.
How do you value my car?
What if I have finance on my current vehicle?
What if I own my current car outright?
Does a Lifestyle Lease impact any other salary packaging benefits I might have or be entitled to?
What if I spend more or less than I budgeted?
If you have spent MORE than budgeted…
We will contact you to discuss increasing your regular payments to ensure you can cover the higher amount. You should also monitor your online statements regularly and contact us if you notice your budget is being overspent. Then we can adjust your deductions even sooner.
If you have spent LESS than you budgeted…
At the end of your lease term we will reconcile your account within 60 days. If there is money in your account, we will send the funds to your employer. Your employer will then deduct income tax and pass the remaining balance back to you.
What is the approval process?
When will my contributions start?
What happens at the end of the lease?
What happens if I change jobs during the lease term?
You have a number of options available, including:
- continue paying the lease and running costs yourself (with post-income tax dollars)
- transfer the lease to your new employer (subject to your new employer's approval)
- paying the amount owing and buying the vehicle outright.
Do I have to use Maxxia insurance?
What does FBT and ECM mean?
Fringe Benefits Tax (FBT) is a tax which is applied to benefits you receive from your employer that are not in the form of cash salary or wages. For example, a novated lease is a benefit outside your cash salary or wages – so it is subject to FBT. As of the 1st April 2019, the FBT rate is 47%.
This is where the ECM bit kicks in. ECM – or the "employee-contribution" method – is a standard novated lease calculation that helps offset any FBT you may be liable to pay on your novated lease. By making after-tax as well as pre-tax payments you reduce the taxable value of your car, and minimise the risk of a FBT liability at the end of the FBT year (31 March).
How do I activate my fuel card(s)?
What about servicing and tyre replacement?
With a Maxxia Lifestyle Lease you can enjoy the advantage of access to our Maintenance Team, a team of qualified and experienced mechanics who consistently save our customers on repairs by ensuring:
- work meets the car manufacturer’s standards
- work carried out is reasonable and consistent with the age and condition of your car
- work that is covered by warranty is free; and
- labour and parts are supplied at competitive prices
The process is simple. When you drop your car off, let the supplier know Maxxia looks after your car and ask them to contact our Maintenance Centre on 1300 123 123 before they commence any work.
The team will also organise payments directly from your Maxxia ‘My Car’ account. To ensure there is enough funds in your account, we recommend you regularly check your balance via Maxxia Online. Once the work is completed your mechanic will contact you to collect your car.