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Fleet Handbook Australia

AU-products-services
Products
  • Full Operational Lease
  • Operating Lease
  • Financial Lease
  • Fleet Management
  • Sale and Leaseback
  • Novated Lease
  • Chattel Mortgage
  • AlphaElectric
  • AlphaGuide
Services

Vehicle maintenance (servicing and repairs), insurance, fuel card, roadside assistance, re-registration, fine management, accident management, vehicle sourcing and acquisition, driver statements, remarketing (as well for Novated Lease / Chattel Mortgage finance products), total cost of ownership consultation.

Terms for Operating Lease

–  Minimum: 12 months
–  Maximum: 60 months

Terms for Finance Lease / Novated Lease

–  Minimum: 12 months
–  Maximum: 60 months
–  No more than 200.000 km and no older than 8 years by end of lease
–  Residual Value set within the Australian Tax Office guidelines

Chattel Mortgage
A Chattel Mortgage is a finance product that is purchased as an asset. The customer becomes the owner of the vehicle at the time that the finance contract commences and a mortgage is taken out over the vehicle as security. Once the finance contract is completed the customer obtains a clear title of the vehicle.A Chattel Mortgage is suitable for customers who use vehicles predominantly for business purposes.
 
Key benefits:
  • 100% financing for the GST inclusive price of the vehicle
  • GST can be claimed on the vehicles purchase price if you are registered for GST
  • Choose the term of your contract from 12 to 60 months
  • Nominate the balloon payment to suit you or choose no ballon to take full ownership at the end of the contract
  • Fixed interest rate for the life of the contract
  • Tax deductions may be available when the business is used predominantly for business purposes
  • Maintenance, tyres, registration, insurance and other running costs can be built into the rental to provide you with a fixed known expense for stated terms and kilometres

 

Finance Lease
A Finance Lease is a tax effective tool that preserves cash flow and frees up capital. A finance lease transfers the risk of ownership to you however the legal ownership remains with Alphabet.
A Finance Lease is available to customers who use their vehicle predominantly for business or income-producing purposes (in excess of 50% business usage).
At the end of lease the customer may choose to extend for an additional term or may make an offer to pay out the lease and enter into a new lease agreement for another vehicle.

 
Key benefits:
  • No capital outlay required
  • Amount financed is GST exclusive
  • Flexible contract terms – from 12 to 60 months
  • Fixed term interest rate
  • Fixed monthly lease rental
  • Tax deductions may be available when the business is used predominantly for business purposes
  • Maintenance, tyres, registration, insurance and other running costs can be built into the rental to provide you with a fixed known expense for stated terms and kilometres

 

Novated Lease:
A Novated Lease is a three-way arrangement between an employee, the employer and Alphabet Australia, using pre-tax income to obtain a vehicle of the employee’s choice.
As well as the features and benefits of a standard Novated Lease, a Fully Maintained Novated Lease can also include ongoing maintenance costs such as vehicle servicing and fuel card management, all included in one regular monthly payment.
Vehicle running costs and all scheduled and unscheduled maintenance can be incorporated into your Novated Lease. You can select all or some of the following options to add to your Fully Maintained Novated Lease agreement, which are available in pre-tax dollars:

Key benefits:

  • Fuel card ordering and management
  • Alpha Assist (Roadside Assistance and Accident Management)
  • Alpha Care (Service and maintenance control)
  • Tyre replacements
  • Re-registration and fines management
  • Vehicle sourcing and acquisition
  • FBT reporting
  • Insurance
  • Driver training
  • Fleet administration
  • Quarterly driver statements

 

Operating Lease
An Operating Lease is a rental agreement, which allows the customer avoid the risks associated with vehicle fleet ownership. The customers decide on the vehicle term and annual kilometre usage to suit the business and driver requirements.
Operating leases are currently treated as an off balance sheet funding option and the customer avoids the risks associated with ownership and returns the vehicle at the end of lease as there is no residual value liability.
Alphabet assumes responsibility for vehicle acquisition, disposal and risk of ownership under an operating lease and can include scheduled servicing and vehicle fleet management services combined in one regular monthly payment.

 
Key benefits:
  • Utilising Alphabet vehicle acquisition processes for all make and models Australia wide
  • No capital outlay required
  • Amount financed is GST exclusive
  • Flexible contract terms – from 12 to 60 months
  • Fixed monthly lease rental
  • Maintenance, tyres, registration, insurance and other running costs can be built into the rental to provide you with a fixed known expense for stated terms and kilometres

 

au-vehicle-registration
Title

Operating Lease – the leasing company will own the vehicle. The vehicle is registered with the respective Registration State authorities (e.g. VIC roads, NSW – RTA, etc). Once the registration requirements have been fullfilled, the registration plates are issued at the time of vehicle delivery.

Chattel Mortgage / Novated / Financial Lease – the driver of the vehicle is the registered owner of the vehicle. The vehicle is registered with the respective Registration State authorities (e.g. VIC roads, NSW – RTA, etc). Once the registration requirements have been fullfilled, the registration plates are issued at the time of vehicle delivery.

Transfer of title

Whoever sells the vehicle (who has the rights of ownership), the owner is responsible for a certificate of roadworthiness and the new purchaser is responsible for any registration transfer fees such as stamp duty relevant to each state.

Required documentation

Normally the supplying dealer handles the registration process for the first year, if the contract is a fully maintained lease, Alphabet is responsible for handling the administration aspect of registration for any additional contracted years.

Time frame

Under normal circumstances this process should not take more than three business days to complete. Generally registration of new vehicles would take place before the delivery date, to ensure a smooth delivery to the our customers.

au-taxation
Goods and Services (GST) rate

The current GST is 10%.

Other vehicle-related taxes and fees

Luxury car tax (LCT) is a tax of 33% on luxury cars sold or imported where the value of a car exceeds the luxury car threshold. LCT only applies to the amount above the luxury car threshold.

The LCT threshold for 2016–2017:

  • Fuel-efficient vehicles: $75.526
  • Other vehicles: $64.132

 

Generally, you will be required to pay LCT if you are either:

  • registered, or required to be registered, for GST and you import or sell a luxury car – this includes retailers, wholesalers, manufacturers and other businesses that sell luxury cars or
  • an individual (private buyer) and you import a luxury car
Stamp duty

Stamp Duty is applicable to each state of Australia.

An example from one state (VIC) as at 2016-2017, is below:
Example (state of Victoria) as at 2016-2017
For new passenger vehicles, stamp duty is charged at the rates below.

Car values between $0 - $64.132 are calculated at $6,40 per $200 of the market value or part thereof.
Car values greater than $64.132 are calculated at $10,40 per $200 of the market value or part thereof.

For demonstrator vehicles, stamp duty is applicable at new car rates.

For used passenger vehicles, stamp duty is charged at $8,40 per $200 of the market value or part thereof Stamp duty is paid directly to the dealer, or to VicRoads for private sales.

Tax refund and accounting

In reference to Lease products: GST charged on the vehicle purchase is claimed back by Alphabet Australia as an input tax credit, so the amount financed is exklusive of GST; the customer therefore benefits from reduced rental payments. GST is charged on the monthly lease rental and residual value. If the customer is registered for GST purposes, input tax credits may be applied to offset some or all of the GST charges, dependent on the percentage of business usage included.

au-contact

Alphabet Australia
A division of BMW Australia Finance Ltd
Postal address P.O. Box 611,
Mulgrave VIC 3170
Australia

 

Phone: +61 1800 220 580
Email: alphabetaustralia@alphabet.com
Internet: www.alphabet.com/en-au

 

Latest update: September 2018