General Leasing Information
Q. What is novated leasing?
A. A lease is considered a "novated" lease if it is a tri party arrangement involving a lease provider (Rhodium), an employee (yourself) and an employer. A Deed of Novation is signed by all three parties to authorise the employer to make lease payments to the lease provider - sometimes through the use of a salary packager - from the employee’s gross salary (that is salary before tax). The remaining portion of the employee's salary is therefore subject to Pay As You Go (PAYG) tax. This means you don’t incur PAYG tax on the periodic lease payments, although you may have to pay Fringe Benefits Tax (FBT) on the lease. Please see the taxation section of our website for further information or seek advice from your employer / salary packager / financial advisor.
Rhodium strongly recommends that you discuss novated leasing with a financial advisor prior to establishing a novated lease to see if this particular type of lease is right for you.
Q. What is a salary packager?
A. Many employers outsource their payroll functions to a third party for administration of their payroll and FBT administration. You should check with your human resources area to find out who your employer deals with. Prior to lease commencement your salary packager will have their own series of requirements and paperwork to complete, so they should be involved through most steps of the lease commencement process.
Q. Am I eligible for a lease?
A. Rhodium is prepared to offer novated leases to any employees if their employer is willing to use Rhodium as a lease provider, is willing to offer you a lease, is willing to sign the application to lease and is willing to sign the resultant Deed of Novation. Your application is subject to a credit check and assuming that you fulfill our criteria we will be able to offer you a lease.
Your employer may apply restrictions to which staff can commence a novated lease so this should be investigated with your employer prior to submitting a quote request.
Q. What vehicles can I lease from Rhodium?
A. Under a novated lease Rhodium only offers new vehicles that are available on the Australian market. Your employer however may place some constraints on the type of vehicle that you can lease e.g. no commercial vehicles, so this is important to check with them first on any limitations.
Your new vehicle must be purchased from a licensed motor vehicle trader.
Q. How do I commence a lease?
A. The first step in the Rhodium lease process is to submit a quote and from here there are set steps that we will follow to have you in your new vehicle. These steps are outlined below.
1) Submit a quote request – note please read carefully the Rhodium advice prior to submission which is shown when you actually click to submit a quotation.
2) Rhodium will prepare the quotation and send to you via your nominated email address.
3) Contained within the quote is an "Application for Novated Lease" which you and your employer will be required to complete. This application will also contain a credit check authorisation which must be completed by you.
4) Upon successful credit verification Rhodium will issue novation deeds for the lease. These must be signed by you and your employer before Rhodium will actually place an order for the vehicle.
5) Once the deed of novation is signed and returned Rhodium will place an order with your nominated delivering dealer. Once Rhodium has placed the order ,cancellation of the lease will only be allowed with Rhodium and the dealers consent.
6) When the vehicle is available for collection and Rhodium has been officially invoiced by the delivering dealer, Rhodium will provide you with a lease schedule. This document needs to be signed by you (and possibly your employer) and returned to Rhodium as three original copies before we will authorise delivery of the vehicle.
7) You are now ready to collect the vehicle and the dealer will contact you to arrange a time of collection.
