If your employer has never done a novated lease before, they may have questions on how it all works, how it impacts them, and how to set it up correctly. The good news is there is no cost or liability that falls onto your employer. Our dedicated novated lease team is always here to assist your employer, or you directly, to explain the finer details.

In some cases, your employment contract specifies that you have to use their novated lease supplier, or they might be locked up in an exclusive agreement. But if not, you should have the choice to source a more competitive option for your novated lease via Driva.

If your new employer offers novated leasing or is willing to offer it, you will be able to transfer the lease across without paying out your loan or refinancing, and with all the same benefits.

No, all Driva customers using their car for personal use are set up under the employee contribution method. The FBT liability simply doesn’t exist for electric vehicles due to a government incentive (for the 2024-2025 financial year, as long as the vehicle is under the luxury car tax threshold of $91,837 including GST). FBT exemption eligibility criteria apply and are subject to change. Customers should confirm their eligibility prior to purchasing any vehicle and seek independent professional advice.

It includes your monthly repayments plus anything it costs to run your vehicle. You can choose what those costs are, whether it be fuel, registration, insurance, services and maintenance, tyres, and Roadside Assistance. We’ll discuss everything and allocate a tailored monthly budget so you can avoid unexpected expenses and go with confidence. The best part is, your budget can be carried over to the next month, or paid out with your salary.

At Driva, we use a budget model that takes into account the vehicle type, servicing requirements, annual kilometres, historical data, and several other factors. We typically apply this estimated budget to your lease package or, if you prefer, we can incorporate your actual running costs at your discretion. Our goal is to ensure the correct budgets are set from the start, tailored to your specific needs. However, if adjustments are needed, it’s no problem—we can update the budget at any time during the lease.

At the end of your novated lease, you typically have a few options:

• Pay the residual (balloon) value and own the car – You can make a final payment (set at the beginning of your lease) to purchase the vehicle outright and continue using it without any more lease payments.
• Trade in or sell the car – You may choose to trade in the car or sell it privately. If the sale price is more than the residual value, you keep the profit. If it’s less, you may need to cover the shortfall.
• Refinance the residual – If you want to keep the car but don’t want to pay the residual upfront, you might be able to refinance the amount with a new loan.
• Start a new novated lease – Some people opt to upgrade to a new vehicle under a new novated lease arrangement.

Make sure to check the terms of your lease agreement and speak with your employer or novated lease provider ahead of time to plan your next steps.