– By Marc Sibbald –
A key benefit of novated leasing is the ability to wrap all vehicle expenses and finance costs into one regular salary deduction. So why do novated drivers continue to pay for expenses on their credit cards and claim it back from the leasing company?
One reason drivers may pay upfront and then make a claim is the price of the service. Fuel cards are a great way to manage such a regular purchase. But with such large price variances across most capital cities some drivers may think they buy better when they shop around.
Tyres and maintenance prices can also vary when there are promotions or special offers. Drivers with a novated lease may have a preferred repairer or believe they can negotiate a better rate. So they pay with their own credit card – earn some points – then claim it back from their lease budget.
One novated driver, who didn’t want to be quoted, said he planned his week to ensure he got to Costco because the fuel was eight to ten cents cheaper.
Though not all expenses are paid without question. Antony Sabato, Salary Packaging Manager at Toyota Fleet Management (TFM), says “claims are checked to make sure they are vehicle related and drivers aren’t using it as a way to add accessories or improve the vehicle”.
TFM also uses the claims data to improve their offer to customers. If customers are making a lot of claims on fuel and tyres they will challenge the suppliers to provide a more competitive offer.
I think the main reason novated drivers are happy to pay for expenses and claim them back is the speed and ease of reimbursement. Most leasing companies have online claim forms and TFM has a App. Both sgfleet and TFM give the money back within three to five days. And there’s no administration fees! This is a fantastic service and the reason why drivers use it.
