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In theory, leasing a car is simple; you’re just paying for the amount that the vehicle is expected to depreciate during the lease term, plus some interest and fees. You can pick a car with nice features, a high safety rating, the latest technology, and a full warranty.
However, more often than not, expats in Australia experience that the car leasing process is different (and often more difficult) compared with their home countries.
As with everything in life, preparation is the key to success!
By following our 5-Step process, the car leasing process will be much easier to navigate.
The good news is that there are leasing companies in Australia who are specialized in assisting foreign professionals with financing their vehicles. To move forward, you will need to provide them with the following documents:
International travelers are permitted to drive in Australia with a foreign driver’s license for up to three months, provided that the license is in English. If a driver’s license does not have a photo, drivers are required to carry another form of formal photo identification with them.
How to Exchange your foreign driver’s license for an Australian Driver’s License
Requirements may differ slightly between states, but generally, an applicant is required to provide the following:
• Proof of an Australian address
• Proof of identity
• Completed eyesight test
• Completed knowledge test (unless exempt)
• Completed driving test (unless exempt)
• Required licensing fee
• Information about any medical conditions that affect the ability to drive
Drivers may be exempt from completing the knowledge test or practical driver’s test when exchanging their license in the following circumstances:
• They hold a New Zealand license
• They hold a current overseas license and have previously held an Australian one
• They hold a current license issued by an overseas country (including most EU nations, Canada, USA
and Japan) whose licensing system is recognized as similar to Australia’s.
New residents with a permanent visa may benefit from a free translation of their driving license as well as other government and administrative processes.
Note: Information may not be up-to-date. Please check official government information for the latest laws and regulations.
How long do you need the car?
Short-term car leasing of pre-owned cars is an excellent alternative for foreign professionals on a shorter assignment in Australia.
Car lease terms in Australia start as short as 3 months, which is quite unusual from an international perspective. Expats on long-term assignments are able to choose between a variety of makes and models, according to their personal preferences and budget. The longest lease term available is 36 months.
What is your budget?
The first thing any car leasing specialist will ask you is “what is your budget?” For this reason, it’s good to have an idea of what you are willing to spend on your monthly car payments, including the cost of insurance.
When do you need the car?
Usually, the more flexible you are with your car selection, the faster you can obtain your lease. Many times, vehicle providers have popular cars in stock that could be available on short notice. On the other hand, if you opt for a factory-ordered vehicle of a make not common in Australia, you could be in for a long wait.
Delivery times vary considerably on new cars, and you want to be out in good time to ensure that you can get the car you want at your desired time. The usual process time is one to two weeks if the car is available in stock. But factory orders may take as long as three to six months.
Typical lease/payment terms
Payment due at delivery usually consists of a 1-month advance rental payment.
Auto Insurance
Fully comprehensive insurance is included on most lease offers. However, be sure to read the print in small to make sure you and the passengers are covered in case of an accident.
Terminating the lease early
If you have to return your vehicle earlier than expected, the lease agreement will state exactly how any remaining payments or penalties are calculated. So be sure to consider the termination terms when comparing offers.
Vehicle registration
The leasing company will handle the vehicle registration as part of their service.
ExpatRide has experience with assisting expats across the globe and service many Fortune 1000 companies’ employees in Australia.
We can assist with most vehicle makes and models available in Australia such as Audi, Bentley, BMW, Chrysler, Ferrari, Fiat, Ford,Genesis, Honda, Hyundai, Holden, Jaguar, Jeep, Kia, Lamborghini, Lancia, Land Rover, Lexus, Lotus, Maserati, Mazda, Mercedes Benz, Mini, Mitsubishi, MG, Nissan, Opel, Peugeot, Porsche, Renault, Rolls-Royce, Skoda, Smart, Subaru, Suzuki, Tesla, Toyota, Volkswagen, Volvo
No matter what territory in Australia you are relocating to, contact us for your car needs: New South Wales, Victoria, Queensland, Western Australia, South Australia, Tasmania, Australian Capital Territory, Northern Territory or Norfolk Island.
Shared zones: 5 kilometers per hour (3.1 mph)
Highways: 130 kilometers per hour (81 mph)
Children aged four years up to seven years must use a forward-facing child car seat with an inbuilt harness or a booster seat with an adult lap-sash seatbelt or child safety harness
The minimum driving age is 17 in most Australian states, except in Victoria where it is 18 and South Australia, where 16-year-olds can obtain a license.
• Driver’s license.
• Proof of identification.
• Vehicle insurance and registration.
• Driving record.
• Background check.
• Profile photo.
Don’t do it! In Australia, it is an offence to drive while your BAC is 0.05 or above
The penalties if you are caught using a mobile phone while driving are 4 demerit points and a $484 fine.
In Australia, every state has its own Compulsory Third Party (CTP) insurance scheme. CTP covers only personal injury liability in a vehicle accident. Comprehensive and Third-Party Property Damage, with or without Fire and Theft insurance, are sold separately.
By law, all drivers and passengers must wear seat belts if they are fitted in the vehicle. Seat belts are designed to be used by only one person at a time
Expat Car Leasing & Financing involves many specific phrases that can seem complicated. Below you’ll find an explanation of many common expressions used at car dealerships.
This is another way of saying down payment. This is interest-free money that goes towards the price of your car and will reduce your monthly payments. The cash amount you put in to initiate the lease results in a reduction of the capitalized cost.
A lease that doesn’t require the consumer to buy the vehicle at the end of the lease, or to pay any difference between the residual value and market value. A closed-end lease is the most common type of lease.
This is the amount of value that a vehicle will lose during the lease period. The depreciation is the difference between the original price and how much it’ll be worth after the lease is over.
When a customer decides that they want to end the agreement before it was originally arranged. The Leasing company is able to charge a fee that will cover themselves in this circumstance.
When you sign a leasing agreement, you’ll decide on a mileage limit. If you later go over the mileage limit, you’ll normally have the pay an excess mileage charge.
Lease plans have requirements on the condition of a leased vehicle when it is returned. If the car is damaged or in rough condition, there may be a charge.
Leased vehicles usually have stringent coverage requirements and therefore may cost more to insure than your usual “owned” vehicle. However, in many countries, insurance is included in the monthly payments.
This is the period of time in which you’re able to use the vehicle and the period of time that you will be paying on a monthly basis. The lease terms may vary from 12 months to 60 months. Generally speaking, the longer the lease term, the lower the monthly payments.
The MSRP is the list price of the vehicle.
In many countries, maintenance is included as part of their monthly payments. This covers any servicing the vehicle requires, including repairs, new parts, tires, batteries, and exhausts.
This is the agreed amount of money that the customer has to pay to the leasing company on a monthly basis. These payments last until the end of the contract period, although they can be paid off early if the lessee decides that they want to.
A lease that requires the consumer to pay the difference between the vehicle’s residual value and its actual value when the lease ends. This amount is called deficiency. Conversely, if the car’s value at the lease end exceeds the residual value, the consumer can purchase the car and collect the difference on resale
The opportunity for the customer to buy the car at the end of the lease. The price to buy the vehicle is stated in the lease contract and usually is equal to the residual value.
The car’s wholesale value at the end of the lease is projected at the beginning of the lease. Higher residual values translate to lower monthly payments but increase the cost to buy the car at the end of the lease.
The amount customer has to pay at the end of a closed-end lease if they choose not to pay the residual value and buy the car. This fee can include administrative charges, any penalties, the dealer’s cost to prepare the car for resale.
For any questions, feel free to email cars@ExpatRide.com or visit www.ExpatRide.com
Assisting expats with their transportation needs – We are ourselves expats and want to help other expats succeed via our services and our own expat experiences.
Please visit our Australia Country Page for more information on how the local expat car leasing process works and local practical information.
Need assistance with leasing a car? Let ExpatRide lead the way
Contact us at CARS@ExpatRide.com for more information or visit https://https://www.expatride.com/countries/australia-expat-car-services//
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