Some employees assume that using their employer's nominated salary packaging company means they must also accept that company's finance option. That is not always the case — but neither is BYO finance a universal entitlement.
A BYO pathway can be available when the employer and salary packaging administrator allow the vehicle finance to be sourced separately.
The question to ask HR or the salary packager
Use specific wording:
Does our novated lease program accept third-party or self-managed finance where I arrange the vehicle lease separately and continue to use the nominated salary packaging administrator for payroll and ongoing administration?
Then ask for the document requirements before applying anywhere.
Why someone might compare BYO finance
The goal should be comparison, not an assumption that independent finance will always be cheaper. A separate option lets you test:
- finance rate;
- establishment/PPSR fees;
- vehicle price if sourcing is also separate;
- residual and term;
- early termination terms.
Use the GPS Novated Lease Rate Calculator to compare the finance cash flows on equivalent assumptions.
What still needs to line up
A separately sourced lease still needs to work with the employer's novation and the salary packaging administrator's processes. The financier may also have documentation or employer acceptance requirements.
BYO finance is not the same as a normal car loan
A conventional consumer car loan and a vehicle finance lease used in a novated arrangement are different structures. Do not assume an ordinary car loan can simply be “plugged into” salary packaging. The documents and provider process need to support the intended novated arrangement.
Read Novated Lease vs Car Loan: What Should You Compare?.
Check whether a BYO pathway may be available: send a novated lease enquiry.
About the author: KK Neelamraju is a finance and credit professional and an Authorised Credit Representative through GPS Finance Group.
GPS Finance Group (CRN 000575797) is an Authorised Credit Representative of AFAS Group Pty Ltd (ACL 414426). AFCA Member ID 119860. General information only. Credit approval and pricing are subject to lender assessment. Tax-sensitive information should be checked against current ATO guidance and, where appropriate, with a qualified tax adviser.
Need help matching this to a finance option?
GPS Finance can review the funding purpose, conduct, documents and lender fit before you make a formal enquiry.
