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NSW Government Motor Vehicle
Operating Lease Arrangement
The NSW Government Motor Vehicle Operating Lease Arrangement (Tranches 1, 2 and 3) has closed for all new vehicle leases. The terms and conditions of the arrangement continue to apply to all new Tranche 3 vehicles delivered up to and including 20 December 2005.
The following subject terms are applicable to StateFleet's lease products including the Standard Lease, Serviced Lease and All Inclusive Lease.
Lease Terms
Vehicle Category Definitions
Commencement of Lease
Lease End Date
Termination of Lease
Transfer of Lease Between Clients
Lease Renewals
Lease Extensions
Residual Value Percentages
Interest Rate
Lease Payments
Lease Quotes - easy.Quote
Penalties
Billing
Vehicle Replacement
Vehicle Selection
Vehicle Purchase and Acceptance - easy.Order
Fit Out and Modifications
Additions to the Lease
Luxury Car Tax (LCT) Threshold
Vehicle Warranty
Logos
Vehicle Care and Maintenance
Accidents or Theft of Vehicle
Vehicle Return
For more information on arrangements unique to each of StateFleet's lease products see Leasing Options.
Lease Terms
The lease term is a period of time in months a vehicle can be leased by a Client Agency.
Lease terms are available under each vehicle category in multiples of three months commencing from:-
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6 months to 24 months for small, medium and large passenger vehicles, and
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6 months to 36 months for 4WD general purpose, light commercial and commercial vehicles.
A 36 month term is also available on small, medium and large vehicles.
When entering into a new lease, Clients should estimate and select a term in months that best matches the intended kilometres to be travelled by the vehicle. It is recommended that passenger vehicles travel a maximum of 40,000km and light commercial and commercial vehicles travel a maximum from 40,000km to 60,000km.
To avoid excess kilometres it is recommended that Clients select a shorter lease term in preference to a longer term.
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Vehicle Category Definitions
Passenger
micro vehicles (up to and including 1.5L), small vehicles (greater than 1.5 and up to and including 2.0L), medium vehicles ( greater than 2.0L – and less than 3.0L), large vehicles (3.0L and above), 4WD wagons and AWD vehicles.
Light Commercial
panel vans;
utilities, up to and including 750kg carry capacity, and above 750kg carrying capacity, 4x2, single/dual/extracab;
vans, up to and including 3.5 tonne GVM (gross vehicle mass);
cab/chassis, up to and including 3.5 tonne GVM (gross vehicle mass), 4x2, single/dual/extracab;
4WD general purpose;
4WD cab/chassis, up to and including 3.5 tonne GVM (gross vehicle mass).
Heavy Commercial or Highly Modified
buses, 8 to 16 seat, and 17 to 30 seat;
truck cab/chassis, over 3.5 tonne GVM (gross vehicle mass).
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Commencement of Lease
The lease term commences on the date of delivery of the vehicle to the Client.
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Lease End Date
The lease end date is the date the vehicle is due for return to StateFleet. The date is determined by incrementing the delivery date of the vehicle by the number of months in its lease term.
For example: A vehicle delivered on 1/8/03 with a 24 month lease term has a lease end date of 31/7/05.
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Termination of Lease
The Client should retain the vehicle for the period of the lease term commencing from the date of delivery of the vehicle.
The lease term will be terminated on either:-
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Transfer of Lease between Clients
Vehicles may be transferred between Client Agencies and Client cost centres if the receiving Client notifies StateFleet in writing that they are willing to accept liability for the lease fees payable. Lease fees terminate for the transferring Client and commence for the receiving Client on the date StateFleet receives notice of the transfer or on a later date as agreed between the Clients.
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Lease Renewals
StateFleet can arrange renewed lease terms in certain circumstances where a vehicle has not been utilised to the extent estimated when the lease was arranged.
Renewals are available for:
- passenger vehicles where the original lease term was for a period of less than 24 months and the vehicle has not yet travelled 40,000 (pool) / 50,000 (private) kilometres
- commercial vehicles where the original lease term was for a period of less than 36 months and the vehicle has not yet travelled 60,000 kilometres.
Renewed lease terms can be taken out in multiples of three months, as long as the combined terms of the original lease and the renewed lease do not exceed 24 months for passenger vehicles or 36 months for commercial vehicles. StateFleet calculates new lease payments for renewed lease terms.
Clients must give StateFleet at least 30 days prior written notice of their intention to renew their lease term.
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Lease Extensions
Extended lease terms are automatically triggered if a vehicle has not been sold during the month when the lease expires and no application for a renewed lease term has been made. Automatic extensions are for three months, during which time the vehicle must be returned and sold.
The lease payment that applies during an extended lease term is the same as for the original lease term.
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Residual Value Percentages
The residual value percentage is the forecast net sale price expressed as a percentage of the original purchase price. In the NSW Government Motor Vehicle Operating Leasing Arrangement, a residual value percentage is applied to each vehicle category and Client Residual Grouping.
The residual value percentage is used in the calculation of the lease payment for a vehicle.
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Interest Rate
The interest rate for new operating leases is reviewed and determined by NSW Treasury Corporation (T Corp) on 1 June and 1 December of each year. T Corp reserves the right to vary interest rates for new leases at any time.
StateFleet uses the interest rate applicable at the time, in the calculation of the lease payment for a vehicle.
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Lease Payments
The lease payment for a vehicle is calculated when the invoice for the purchase of the vehicle is presented to StateFleet. The lease payment is calculated using the purchase price of the vehicle and the interest rate and residual value percentage applicable at the time of invoice presentation.
Indicative lease payments are available from StateFleet to assist Clients when selecting a vehicle. These payments are indicative only due to fluctuating variables including contract purchase prices, interest rates and residual value percentages over time.
The lease fees payable to StateFleet commence from the date of delivery of the vehicle to the Client, ie. commencement of the lease term.
The lease fees payable terminate on either: -
i.e. termination of the lease.
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Lease Quotes - easy.Quote
easy.Quote is an on-line lease quoting facility available to registered Clients of StateFleet's e.Services. The quoting facility provides indicative lease quotes for the full range of State Contract vehicles including vehicle options and accessories.
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Penalties
An Early Return Penalty will apply on the lease if a Client returns the vehicle more than three months early. The penalty fee payable is $200 per month for the number of months, or part there of, remaining on the lease.
For example, a vehicle returned four months early would incur a penalty fee of $800.
The regular monthly lease payment terminates when the vehicle is returned and accepted by StateFleet.
A Late Return Penalty will apply on the lease if a Client retains the vehicle for more than three months after the lease end date. The penalty fee payable is $500 each month in addition to the regular monthly lease payment until the vehicle is returned and accepted by StateFleet.
For example, a vehicle with a due lease end date of 31/5/05 has a monthly lease fee of $400. If a Client retains the vehicle after 31/8/05, the total fees payable from 1/9/05 will be $900 per month until the vehicle is returned.
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Billing
Lease fees are invoiced by StateFleet one month in arrears and are payable within 30 days of the date of the invoice.
The first invoice received for a new vehicle will include lease fees payable from the date the vehicle was delivered to the last day of the invoice month.
e.g. If a vehicle was delivered on 15/4/03, the first invoice dated 31/5/03 will include lease fees payable from 15/4/03 to 31/5/03.
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Vehicle Replacement
The Client Agency's Fleet Manager is responsible for ensuring replacement action is initiated in due time so that the delivery of the new vehicle coincides with the lease end date of the vehicle being replaced.
Information on new vehicle delivery times is available under Purchasing Your Vehicle.
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Vehicle Selection
Clients of the NSW Government Operating Lease Arrangement are able to select from a comprehensive range of motor vehicles available through the State Contract Control Board's Motor Vehicle Supply Contract (no. 653). A complete listing of vehicle makes, models and accessories is available through smartbuy.
The selection of vehicles, including options and accessories should be based on firm business principles according to the Client Agency's operational needs, and in accordance with the NSW Premier's Department's Motor Vehicle Policy for NSW Government Agencies and NSW Premier's Memorandum 2005-03 Cleaner NSW Government Fleet.
Other points for consideration when selecting a vehicle include the indicative lease rate, expected delivery time, compliance under the Luxury Car Tax threshold, the green rating and likely requirement to conform to the Client Agency's Fleet Manager's recommended manufacturer fleet profile.
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Vehicle Purchase and Acceptance – easy.Order
When a new vehicle is required the Client is to complete an on-line order using easy.Order; an on-line vehicle ordering facility available to registered Clients of StateFleet's e.Services.
Clients are encouraged to nominate the dealer for vehicle delivery and give careful consideration to the required delivery date. The delivery date should coincide with the lease end date of the vehicle being replaced.
StateFleet will place an order for the new vehicle with the nominated dealer or, in cases where a dealer has not been nominated, the nearest dealer to the delivery location. StateFleet will send a copy of the vehicle order to the Client.
Prior to accepting the new vehicle on delivery, the Client is to complete a New New Vehicle Delivery Checklist. Delivery of the vehicle should not be accepted unless all requirements on the checklist have been met. If required by the Client, StateFleet will assist should a dispute arise during the delivery process.
On acceptance of the vehicle, the Client is to sign and date the New Vehicle Delivery Checklist and vehicle invoice and forward both documents direct to StateFleet.
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Fit Out and Modifications
All vehicle fit outs and modifications must comply with the Roads and Traffic Authority's NSW Vehicle Standards.
All fit outs and modifications included in the NSW Government Motor Vehicle Operating Lease Arrangement are to be returned with the vehicle on lease end date, or alternatively and under prior agreement, transferred to the replacement lease vehicle.
All fit outs and modifications financed by the Client are to be removed from the vehicle prior to its return to StateFleet. The Client is to ensure that any damage to the vehicle resulting from the installation or removal of the fit out or modification is rectified.
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Additions to the Lease
If required, additional vehicle accessories or equipment may be purchased after delivery of the vehicle. These items must be ordered within the three month period after the delivery date to include their cost in the lease of the vehicle. The lease fee payable on the vehicle will be adjusted to include the new items.
Orders for the additional items are to be sent direct to StateFleet by facsimile message.
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Luxury Car Tax (LCT) Threshold
Any passenger vehicle, station wagon or 4WD vehicle with a cost (GST inclusive), including accessories, in excess of the LCT threshold cannot be leased through the NSW Government Motor Vehicle Operating Lease Arrangement.
The Australian Taxation Office reviews the LCT threshold each financial year. The LCT threshold for the 2004-05 financial year is $57,009.
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Vehicle Warranty
The manufacturer's warranty on the vehicle commences from the date of vehicle delivery. The terms and conditions of warranty specific to the vehicle are outlined in the Manufacturers Vehicle Handbook.
Clients are to ensure that each vehicle is maintained in accordance with the terms and conditions of its warranty.
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Logos
The Client Agency's logo may be displayed on vehicles supplied under the NSW Government Motor Vehicle Operating Lease Arrangement.
The logo must be removed from each vehicle prior to its return to StateFleet. The Client should take care when removing logo decals or stickers as damage to the vehicle's paintwork may detract from its sale value.
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Vehicle Care and Maintenance
Clients are to ensure that vehicles are fully serviced and maintained in a clean and roadworthy condition throughout the term of their lease. Care and maintenance of the vehicles includes:-
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protective and secure covering or garaging,
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regular preventative maintenance checks in accordance with the manufacturer's recommendations eg. fluid levels and tyre pressure,
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regular washing of the vehicles' exterior and cleaning of interior surfaces,
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repair or replacement of damaged paintwork, parts or panels,
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correct usage in accordance with the vehicles' designed purpose,
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regular servicing in accordance with the manufacturers recommendations by a licensed motor vehicle dealer, or Motor Vehicle Repair Industry Council approved workshop.
StateFleet reserves the right to inspect any vehicle during the term of its lease.
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Accidents or Theft of Vehicle
The Client Agency is responsible for implementing appropriate accident / theft management procedures in accordance with the requirements of the Treasury Managed Fund (TMF).
In the event of total loss or theft, the lease fees payable on the vehicle will terminate on the date StateFleet receives the insurance proceeds from the TMF Fund Manager.
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Vehicle Return
Vehicles must be returned to StateFleet (or its nominated agent) on the lease end date or most practicable date thereafter. StateFleet will notify the Client of vehicles due for return one month in advance of the vehicles' lease end date.
Note: Retaining vehicles beyond the lease end date may impact on the potential sale value of the vehicle. Vehicles retained for more than three months after the due lease end date will attract a Late Return Penalty. Vehicles returned more than three months early will attract an Early Return Penalty.
All vehicles must be returned in a clean, well maintained and roadworthy condition with all options and accessories fitted at the time of purchase intact. A Safety Inspection Report (pink slip) must be obtained for each vehicle prior to its sale.
StateFleet reserves the right to reject any vehicles, which are not able to be registered or have sustained excessive wear and tear.
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