rdelavictoria, Author at Metro Finance

Getting the Most out of a Novated Lease

Posted on 3 April 20258 May 2025 by rdelavictoria

A bit of careful consideration now can get better returns later…

A novated lease is a great way to get into the vehicle of your choice, while at the same time taking advantage of a range of money-saving benefits as part of your lease.

As we’ve talked about before, a novated lease is offered through your employer via a service provider, with the lease paid from your salary before tax; thereby potentially reducing the amount of tax you have to pay. Another financial benefit of novating leasing is you don’t pay GST on the car you purchase, or its running costs – once again, potentially putting more money in your pocket.

However, there is another major benefit of a novated lease over other means of acquiring a vehicle, and the answer lies in residual value.

What is a residual value?

In the case of a novated lease, the residual value of a vehicle is what the vehicle is worth at the end of a lease term, which is set by the Australian Tax Office (ATO). This is calculated by a number of factors, including:

Market desire for that particular vehicle (e.g. Toyota RAV4), based on previous sales in your city and state
Assumed wear and tear on the vehicle over the term of the loan

Knowing your vehicle’s expected residual value at the end of its lease term, which will then inform how much money you need to pay to your lease provider if you decide to keep your vehicle. This is known as a balloon payment.

About ATO residual value percentages

The ATO has guidelines on residual values based on a minimum percentage of the vehicle cost over the lease term.

These percentages can be lower if the value of the vehicle is likely to be less at the end of the lease term – usually because you intend to add a lot of mileage to the vehicle. This is typically discussed and agreed to by all parties at the time of starting a new lease.

A few things to remember

You don’t have to keep your vehicle at the end of its lease term. The great thing about a novated lease is the flexibility it can offer – you can also choose to start a new lease with a new vehicle; it’s completely up to you.

If you do choose to keep your vehicle (having formed an unbreakable bond with it over your time together – we get it…) you can opt to pay the previously agreed balloon payment to your lease provider, or even apply to re-finance the amount owing.

Typically, novated leases cost less than a standard car loan or purchasing a vehicle outright; but many use novated leasing as a way to recoup even more money by selling their vehicle privately or to a dealer at current market value – which is often higher than the agreed residual value set at the beginning of a lease.

Here are some ways that you can ensure the highest possible return for your vehicle at the end of a novated lease:

01 /

Do your research before you buy

By choosing a popular vehicle from a well-known brand you’re already setting yourself up for future resale success.

02 /

Think about the resale value

Just because you like lurid green cars with purple interiors doesn’t mean that many others will. If you intend on selling your vehicle at the end of its lease, specifying it with options and features that have universal appeal is the best strategy.

03 /

Take good care of your vehicle

Remember, it’s not just age and kilometres that determine residual and resale values. Having a regularly, and correctly, maintained vehicle free from damage dramatically improves its value.

What to do next

Interested to know more about how a novated lease might work for you? It’s important to consider all your options when deciding on whether a novated lease is right for you. Talk to your employer and your accountant first to understand the pros and cons that relate specifically to your financial position before making any decisions.

EV Novated Leasing Guide

Posted on 3 April 202523 April 2025 by rdelavictoria

Discover the benefits of an EV novated lease. Compare leasing vs. buying to find the best option for you. Learn more now!

Electric Vehicle Novated Leasing: Benefits and Buying vs. Leasing

The automotive industry is undergoing a technological revolution, with a range of new vehicle types and energy sources to choose from. Electric vehicles (EVs) have emerged as the most popular and readily-available of these new forms of mobility, using batteries to power electric motors, either partially (known as a plug-in hybrid electric vehicle, or PHEV) in combination with a traditional internal combustion engine, or fully using electricity to charge its batteries.

Just as there are a bunch of options to choose from when it comes to EVs, there are a number of ways to get into an electric vehicle of your own. In this blog we’ll take a look at novated leasing for electric vehicles and talk about some of things you should know if you’re considering one.

What is an EV Novated Lease?

A novated lease, arranged through a salary packaging provider, allows employees to drive the car they want while maximizing their tax savings. The salary packager facilitates a seamless three-way agreement between the employee, their employer, and a financier like Metro Finance. With lease payments deducted from pre-tax income, employees can enjoy the benefits of a new or used vehicle while reducing taxable income—making salary packaging a smart and cost-effective way to drive.

How Does Novated Leasing for EVs Work?

Much like a novated lease for any other type of car, an EV novated lease will typically include all of the vehicle’s running costs in the monthly lease payments, including things like registration, insurance, maintenance, and even charging costs.

Benefits of Choosing a Novated Lease for an Electric Vehicle

Let’s take a look at some of the key benefits when it comes to leasing an EV:

01 /

Tax Savings

There are lots of benefits to novated leasing – including consistency of payments to improve cashflow – but the main benefits employees enjoy with novated leasing is the reduction to their pre-tax income via lease repayments, which could reduce their tax liabilities while also taking advantage of additional benefits when leasing an EV over a petrol or diesel-powered car.

In recent years, State and Federal governments have offered motorists a range of financial incentives to promote the uptake of electric vehicles, making them more affordable than ever to buy or lease. Metro has its own financial product, MetroEco, which offers a range of discounts and flexible terms for sustainable technologies, including EVs. Through a broker, you can explore how MetroEco can help you save on an EV with a loan or lease tailored to suit your needs.

02 /

Bundling EV Running Costs

A popular feature of novated leases is the bundling of a vehicle’s running costs into one regularly monthly pre-tax payment. All the associated costs of keeping an EV on the road are usually factored in: registration, insurance, servicing and maintenance, and even charging at public-facing charging stations.

03 /

Reduced Fringe Benefits Tax (FBT)

A recent initiative of the Federal Government is the waiving of fringe benefits tax (FBT) for zero or low-emission vehicles, including any associated running costs. This makes EVs a popular option for employers to offer their employees under salary packaging. Talk to your employer about what novated leasing options they have available, and how leasing an EV may benefit your circumstances.

04 /

Fixed, Predictable Payments

For many, the predictability of payments is a standout feature of novated leasing, which can help with household budgets and cashflow management. Depending on the type/s of salary packaging offered by your employer, you might also have the option to lease additional vehicles for your immediate family – which once again would contribute to one, monthly bundled pre-tax payment also covering all major vehicle expenses.

Novated Lease vs. Buying an Electric Vehicle

Ownership and Flexibility

Put simply, the biggest difference between EV ownership and novated leasing is all in the name: by purchasing a vehicle, either outright or via a loan, you own the vehicle and are responsible for covering all of its expenses; whereas with a novated lease you don’t own the vehicle at the end of the lease term, unless you choose to purchase it.

For many, leasing a vehicle – which is a depreciating asset – is preferable to owning a vehicle that requires constant upkeep and on-road costs. At the end of the lease term, you also have the option to choose a new vehicle and start another lease, meaning that you could be in a new car sooner and more regularly than owning one outright.

Tax Benefits and Salary Packaging

As we’ve talked about, one of the biggest benefits of novated leasing an EV is in the form of tax savings. Because lease payments are made by your employer from your pre-tax income, it can reduce your taxable income and net you additional tax savings, more than if you had purchased the vehicle.

Out-of-Pocket vs Pre-Tax Costs

Bundling an EV’s running costs into your pre-tax income also helps keep more money in your pocket while enabling predictable cashflow management; meaning you’re not up for more expenses that need to be paid from your income after-tax.

Is an Electric Vehicle Novated Lease Right for You?

Just as there are a multitude of car brands and vehicles to choose from, there are just as many financial options available when it comes to getting into the EV of your dreams. Novated leases are a popular option for many as they bundle the lease and running cost payments into one monthly pre-tax transaction, netting a range of benefits and providing greater transparency when it comes to managing a budget.

If you’re thinking of getting behind the wheel of an EV through a novated lease, talking to your employer is a great place to start. One of Metro’s friendly brokers will also be able to answer any questions you may have about Metro’s novated leases and other financial products, as well as filling you in on any current government incentives and savings to promote EV uptake.

Start a conversation with a Metro broker by clicking the link here.

Novated Leases Explained

Posted on 3 April 20258 May 2025 by rdelavictoria

Need a car?

For many of us, having access to our own vehicle is more than a nice-to-have, it’s an essential part of our lives and the jobs we do.

However, there is more than just one way to get into a vehicle of your choice – aside from purchasing outright, getting a loan or entering a guaranteed future value (GFV) programme offered by a manufacturer, a novated lease may be just the ticket to getting you into the car you want, and benefiting from potential tax savings in the process.

So, what is a novated lease?

With a salary packaging provider, your vehicle costs are bundled into your pre-tax income. They work with your employer to deduct payments and make car repayments to a financier like Metro Finance on your behalf. This setup, known as novated leasing, can help reduce your tax liability and save you money.

Both car loans and novated leases can help you get into a new or used vehicle. However, with a novated lease, your employer makes payments directly to the leasing company, streamlining the process for you. Plus, unlike a standard car loan, a novated lease allows you to bundle running costs—like fuel, maintenance, and insurance—into one convenient, tax-effective package.

Sounds great, how do I get one?

First things first, you need to talk to your employer about novated leasing and what options they may have available for employees – in most instances, new employees would need to complete their probation period before being able to access novated leasing if its offered. It’s also a good idea to talk to your accountant about how the potential lease may affect your future tax payments.

From there, if your employer offers novated leasing as an employee benefit, the leasing provider takes care of the heavy lifting. They work with your employer to gather relevant details—such as your income, expenses, and living circumstances—and guide you through the process, including a credit check, to get you on the road faster.

Once approved, your lease agreement between you, your employer and the finance provider is set-up before you buy a car (or have one purchased for you by the financier). The agreement will include things like lease duration, how many kilometres you intend to drive each year and, of course, the type of car you’re keen on buying.

What are the benefits of novated leasing?

In short: saving you money. Because your novated lease would be paid from your salary before tax, it could potentially reduce the amount of tax you have to pay. Another financial benefit is you don’t pay GST on the car you purchase, or its running costs – once again, potentially putting more money in your pocket.

The other big benefit is the flexibility of not owning the car outright (which you can still do by paying any agreed amount owing at the end of the lease term), and knowing how much it will cost you month-to-month with set payments.

Anything else I should know?

It’s important to consider all your options when deciding on whether a novated lease is right for you. Start a conversation with your colleagues and find out more about the leasing company your employer uses.

Putting the human touch in AI

Posted on 2 January 20255 March 2025 by rdelavictoria

Metro’s new Head of Operations, Bernadette Leyva-Vorn, is utilising new technologies to streamline operations, enabling the Metro team to spend more time with customers

As one of Australia’s most innovative non-bank lenders, Metro Finance continues to be at the forefront of utilising new technologies, processes and systems, as part of its mission to deliver high-quality customer services and solutions; many of which have already been recognised by the finance industry with awards and accolades for both the Metro business and its amazing people.

Leading Metro on its journey as a continued innovator in its customer-led approach is Head of Operations, Bernadette Leyva-Vorn, who recently joined the Metro team.

Bernadette, or Bernie, as she is known by her colleagues, sees a world of opportunity for the Metro business and its customers when it comes to technology.

“Since joining Metro my key focus has been to gain a deeper understanding of the operations of the business, with the purpose to drive, support and deliver initiatives that will optimise efficiency levels helping our people and ultimately providing an optimum experience for our customers,” Bernie says.

One area that Bernie and her team are focused on is utilising artificial intelligence (AI) technologies to streamline tasks and processes – ultimately leading to faster turnarounds for customer enquiries, and allowing the Metro team, and its network of brokers, to provide better service across the board.

It’s not just customers taking note, either: recently Metro was named ‘AI Rookie of the Year’ in the Talkdesk CX innovator of the Year Awards – an accolade that shines a light on the efforts of the Metro team, as it continues to integrate smart technologies to drive better customer outcomes.

Tiago Paiva, Chief Executive Officer and Founder of Talkdesk, spoke recently on the Awards, and pointed towards Metro’s Rookie of the Year recognition as a sign of big things to come.

“The CX market has undergone tremendous transformation in the last year, driven by increasing consumer expectations and rapid pace of innovation. No one understands the impact of that change more than this year’s CX Innovators Award winners. The successes and outcomes of their CX journeys are inspirational; these companies are, in many ways, role models for their industry peers. It is an honour to recognise Metro Finance as AI Rookie of the Year, and a privilege to have Talkdesk be an integral part of its customer experience,” they commented.

From a Metro perspective, Bernie believes awards such as this provide a platform for the industry to celebrate its combined achievements, as well as learn from one another.

“It’s a fantastic recognition of efforts by the team, and means that we are on the pathway to become better equipped to optimise the customer experience,” Bernie says.

“Talkdesk features such as Copilot helps our people enhance the customer experience by providing assistance on calls and after-call work, by transcribing and summarising conversations. Over time, as the modelling builds out, the assistance will only get smarter around each customer journey which will in turn enhance the assistance for our people and our customers,” Bernie continues.

And as for AI in general? Bernie believes there is great potential for the technology, when used to support human interactions.

“AI is clearly a very advanced technology, and will get more sophisticated over time. It will expand opportunities for innovation that will transform the industry amplifying efficiency levels across the entire value chain.”

While the temptation for some businesses when using AI is to over-utilise: automating seemingly every process and removing human interaction from customer experiences; Metro is focused on retaining its personal touch, using AI instead to enhance person-to-person interactions, rather than reducing or removing them. Bernie believes that Metro’s customer-centric approach is the lender’s superpower, and one that she and her team strive to ensure it remains at the forefront of everything the Metro business does.

“AI provides a lot of opportunities to gain efficiencies, and at Metro it is a means to help and support our people, enabling them to spend more time with customers and providing a better experience.”

To experience the Metro difference for your yourself (and to have a conversation with a real person!), talk to your Metro broker about a financial solution that is right for you.

Green financing for business

Posted on 21 October 20245 March 2025 by rdelavictoria

Top five myths surrounding green finance for SMEs

The momentum on green loans is growing as the local market’s willingness to engage with green financing expands. Sustainability linked loan transactions have expanded across Australia over the past 12 months.

Green financing is a way for businesses and consumers to reduce their carbon footprint without breaking the bank. Research indicates that Australia’s roughly 2.4 million SMEs emit about 146.5 million tonnes annually, with transport identified as one of the key drivers of the carbon footprint of SMEs.
Increasingly, financial institutions are offering customers competitive green finance products.

Supporting the government’s net-zero initiatives, Metro recently launched its MetroEco product for small-to-medium sized businesses, developed in partnership with the Clean Energy Finance Corporation (CEFC) to provide discounted finance solutions for electric vehicles (EVs), solar panels, batteries and more efficient farm and building machinery.

While Australians are increasingly wanting to contribute to more sustainable business practices, there are quite a few myths and misinformation circulating about how green finance works, especially for EVs and equipment. So, we’d like to debunk a few of these.

Myth number one:

Green finance attracts higher interest rates than traditional finance.

Green loans can have lower interest rates than conventional loans.

Buying an EV could earn you a better deal on your car or van loan than through a traditional loan – with reduced fees and up to a 1% discount on interest rates. It can also provide competitive rates for energy efficient tractors, earth movers and cranes.

For example, a MetroEco loan of $60,000 for an EV could save some $1700 in interest expenses over five years. Metro strives to make owning an electric vehicle and installing a solar system not only a sustainable choice but also an affordable one. Our competitive rates and flexible terms ensure that you receive the best possible options for your EV, plug in hybrid car loan or next eco-friendly purchase.

Myth number two:

Green finance involves more hurdles for applicants.

With the extra momentum and motivation from lending institutions and government to support reduced emissions, red tape is minimised for businesses who are being encouraged to support Australia’s sustainability goals. Metro aims to make the green loan repayment process as convenient and stress-free as possible.

Metro’s streamlined green loan application process for EVs and equipment ensures that clients receive a prompt response, allowing them to secure an EV for their commercial fleet, faster and easier.

Myth number three:

It’s just the same finance but with a different name.

Green loans operate in the same way as traditional loans in general, but there are important distinctions. The process is the same in that the borrower applies for finance from a lender and the lender assesses their application before deciding whether to loan a sum of money or not. However, this is where the similarity ends. The main difference between the two types of loans is where the finance is generated from and its purpose.

Different purpose: Traditional finance can be applied for a variety of purposes and products and can originate from, while green loans may only be used for the purchase of approved environmentally friendly products that have the dual purpose of reducing carbon emissions and supporting net-zero goals.

Lower interest rates: Lenders can apply a lower interest rate to green loans, helping to incentivise the purchase of environmentally-friendly products.

Access to benefits: Using a green loan allows you to purchase environmentally friendly products and start enjoying their benefits sooner while paying off the balance over several months or years Much like standard finance, the terms of green lending do vary between lenders.

Myth number four:

Only established businesses can successfully apply.

MetroEco offers green loans for commercial EVs and equipment to all kinds of businesses, provided they meet the usual criteria and credit approval checks. We do not restrict our green loan products to established business entities. (minimum of 2 years trading history required).

Myth number five:

Green finance can only cover a short period because EVs and hybrid vehicles don’t last as long as traditional vehicles.

This is not the case. At Metro, for example, you can choose an electric vehicle loan term of up to five years to suit your business’s financial situation and preferences. Whether you prefer a shorter term to pay off your electric vehicle loan quickly or a longer term with lower monthly payments, we have options that cater to these individual and business needs.

Loan terms do vary across lenders.

For more information about MetroEco finance please visit: https://metrofin.com.au/metro-eco-electric-vehicles/

Choosing the right EV for your company’s fleet 

Posted on 20 October 20245 March 2025 by rdelavictoria

Whether you have a local fleet of vehicles that run short distances or a delivery cargo van that covers a fair number of kilometres a day, or even if your distance range is beyond this, commercial electric vehicles could be a good fit.

You may have heard that electric vehicle (EV) adoption is steadily growing in Australia in support of the country’s net-zero emissions goals, while investment in charging station points has also been turbocharged; but how are we travelling when it comes to the bigger contributor to carbon emissions: commercial transport fleets?

Australia still has a way to go with fleet decarbonization, but we are forging ahead.

A Report by AMFA found that more fleets are now using Battery Electric Vehicles (BEVs) with 45 per cent of fleets now having at least one BEV, up from 25 per cent in 2020. Government fleets are at the forefront of EV adoption.

As a comparison, the United States is also taking action. McKinsey Sustainability Insights projects that commercial and passenger fleets in the US could include as many as eight million EVs by 2030 (up from less than 5000 in 2018), which would amount to 10-15 per cent of all fleet vehicles.

New models available

According to a reputable EV news site in Australia: The Driven, these are some new models you might want to consider for your commercial fleet: Arrival mid-late 2024

01 /

Ford

Has announced that its smaller light commercial E-Transit Custom van will be arriving in Australia in the latter half of 2024.

02 /

Peugeot Australia

Has confirmed the arrival of the larger light commercial e-Expert van in late 2024. This model provides more space and a longer driving range compared to the smaller e-Partner van.

03 /

Renault’s Master E-Tech

The largest in their light commercial van lineup, is set to debut in Australia in 2024. Positioned between the smaller Kangoo E-Tech and the larger Master E-Tech, the Renault Trafic E-Tech light commercial van offers enhanced efficiency and can travel up to 297 km on a full charge. Renault plans to introduce the Trafic E-Tech in Australia in late 2024.

04 /

Zeekr

AChinese brand under the Geely umbrella—which also owns Volvo, Polestar, and Lotus—will be launching its luxury electric people mover, the Zeekr 009, in Australia during the second half of 2024. The Zeekr 009 utilizes the same Sustainable Experience Architecture (SEA) platform as the Volvo EX30 and Polestar.

Carsguide also put together a list of ‘top 10 commercial vehicles to keep an eye on in Australia’. Among its favourites are the Renault Kangoo Z.E van, BYD T3 van, Skywell EC11 cargo van, Tesla Cybertruck and the Mercedes-Benz eVito panel van.

Future looks bright

There’s more good news and green shoots on the horizon in transport decarbonisation in Australia. Car reviewers are tipping that Australians will soon see an EV version of the very popular Toyota HiLux Ute after the company confirmed it will begin making it by the end of 2025. As a nation, we are also starting to flex our innovation muscle in commercial EV technology development. Homegrown EV start-up SEA-Electric has created an Australian software and component system to be fitted into light commercial vehicles including delivery and distribution vans. They recently signed up to a groundbreaking exclusive supply deal with two global manufacturers – Japanese truck giant Hino (a Toyota subsidiary) and Volvo’s Mack – to deliver thousands of its ‘drivetrain’ system units to electrify this segment of the commercial vehicle sector. So, watch this space! For more information you can also check out the Governments guide to green vehicles: https://www.greenvehicleguide.gov.au/

A bit of careful consideration now can get better returns later…

A novated lease is a great way to get into the vehicle of your choice, while at the same time taking advantage of a range of money-saving benefits as part of your lease.

What is a residual value?

About ATO residual value percentages

A few things to remember

01 /

Do your research before you buy

02 /

Think about the resale value

03 /

Take good care of your vehicle

What to do next

Discover the benefits of an EV novated lease. Compare leasing vs. buying to find the best option for you. Learn more now!

Electric Vehicle Novated Leasing: Benefits and Buying vs. Leasing

What is an EV Novated Lease?

How Does Novated Leasing for EVs Work?

Benefits of Choosing a Novated Lease for an Electric Vehicle

01 /

Tax Savings

02 /

Bundling EV Running Costs

03 /

Reduced Fringe Benefits Tax (FBT)

04 /

Fixed, Predictable Payments

Novated Lease vs. Buying an Electric Vehicle

Ownership and Flexibility

Tax Benefits and Salary Packaging

Out-of-Pocket vs Pre-Tax Costs

Is an Electric Vehicle Novated Lease Right for You?

Need a car?

For many of us, having access to our own vehicle is more than a nice-to-have, it’s an essential part of our lives and the jobs we do.

So, what is a novated lease?

Sounds great, how do I get one?

What are the benefits of novated leasing?

Anything else I should know?

Metro’s new Head of Operations, Bernadette Leyva-Vorn, is utilising new technologies to streamline operations, enabling the Metro team to spend more time with customers

Leading Metro on its journey as a continued innovator in its customer-led approach is Head of Operations, Bernadette Leyva-Vorn, who recently joined the Metro team.

Top five myths surrounding green finance for SMEs

Myth number one:

Green finance attracts higher interest rates than traditional finance.

Myth number two:

Green finance involves more hurdles for applicants.

Myth number three:

It’s just the same finance but with a different name.

Myth number four:

Only established businesses can successfully apply.

Myth number five:

Green finance can only cover a short period because EVs and hybrid vehicles don’t last as long as traditional vehicles.

Whether you have a local fleet of vehicles that run short distances or a delivery cargo van that covers a fair number of kilometres a day, or even if your distance range is beyond this, commercial electric vehicles could be a good fit.

Australia still has a way to go with fleet decarbonization, but we are forging ahead.

New models available

01 /

Ford

02 /

Peugeot Australia

03 /

Renault’s Master E-Tech

04 /

Zeekr

Future looks bright

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