BMW and Mini new-car buyers can complete the entire novated leasing process directly through a BMW dealership, on site on the same day as purchase, through a new partnership between the car-maker and novated-lease provider Smart.

The partnership is designed to make novated leasing easier and more accessible, with Smart claiming it is the first time Australians can take out a vehicle lease at a car dealership.

Further, it makes leasing an electric vehicle easier and more convenient. Smart, which is one of Australia’s biggest salary packaging providers, said 100 per cent of the electric vehicle cost can be paid using pre-tax earnings “providing an attractive, cost-effective way to drive electric”.The program, which follows the Labor federal election win that confirms the ongoing FBT exemption for full EVs (but no longer PHEVs), partners Smart with BMW Financial Services, the finance arm of BMW Group Australia.

Smart said that a key advantage of the program was the fully maintained lease. This bundles all major running costs – such as servicing, tyres, registration, insurance, and fuel – into one regular payment. 

A portion of this payment is from the employee’s pre-tax salary, reducing taxable income and delivering financial benefits.

It said that customers could also benefit from GST savings across the purchase price and running costs of the vehicle, adding to the overall savings.

For EVs, the benefits are more significant because of the FBT exemption that applies to eligible vehicles priced below the luxury car tax threshold of $91,387.

Novated leasing is an Australian Taxation Office approved financing method consisting of a three-way agreement between an employee, their employer, and a finance company.

Smart’s novated leasing and electric vehicle services group executive, Sid Jha, said one of the reasons for the program was the need by customers for simplicity.

“They want to walk into a dealership and drive away knowing everything, including finance, has been taken care of,” he said.

“This partnership delivers one of the most affordable ways to own and enjoy a BMW or Mini, while also helping employees take advantage of the tax benefits that come with novated leasing.”

BMW Financial Services Australia CEO May Wong said: “We’re proud to launch this first-of-its-kind partnership with Smart.

“By bringing the entire novated leasing process into our dealerships, we’re offering a seamless approach and opening the door for more Australians to enjoy the benefits of BMW and Mini ownership, especially those considering electric vehicles as their next car.”