FLEET MANAGEMENT AND FINANCE

Committed to Service Excellence

We are committed to delivering a long term, seamless and cost effective service to our
Fleet customers. Our approach to managing your Fleet is best summed up by our four
primary objectives:

  • Enable customers to outsource their administration and reallocate resources to their core business
  • Earn your trust through our consistent service delivery and expertise
  • Drive down “whole of life” vehicle costs
  • Regularly report on the quantified savings and vehicle policy enhancements that have been achieved.

Achieving these objectives relies upon our account management team truly understanding
your business and the specific challenges it faces, to ensure their recommendations are
practicable and fit within your organisational culture and the agreed framework.

Funding Options

As one of Australia’s major financiers and fleet managers, TFS provides a full suite of funding
options including Operating Lease, Finance Lease, Commercial Hire Purchase and Novated
Lease, all of which are covered by the one Master Fleet Facility Agreement.

TFS’ financial strength earns a AAA long term debt rating from Standard and Poors ensuring
our customers highly competitive cost of funds.

Choosing the best finance option for each asset class involves the evaluation of many
variables including cash flow, accounting and taxation implications, and asset risk.

DIVERSE FUNDING OPTIONS

Funding that fits

TFS provides a full suite of funding options including Operating Lease, Finance Lease, Term
Purchase (Commercial Hire Purchase) and Novated Lease, all of which are covered by the
one Master Fleet Facility Agreement.

TFS' financial strength earns a AAA long term debt rating from Standard and Poors ensuring
our customers highly competitive cost of funds.

Choosing the best finance option for each asset class involves the evaluation of many
variables including cash flow, accounting and taxation implications, and asset risk.

To assist you, TFS has designed an easy to use financial calculator which compares the
after tax cost of each method of finance and determines the most cost effective. Contact
us for more details.

Operating Lease and Novated Lease can include any of the services in the table below,
and shortly this capability will be extended to Finance Lease and Commercial Hire Purchase.
This "mix and match" flexibility allows you to choose the appropriate funding options and
services for each asset class.

Finance Types

Assets Funded

Operating Lease

Passenger

Finance Lease

Light Commercial

Term Purchase (Commercial Hire Purchase)

Heavy Commercial - Trucks/Trailers

Novated Lease

Materials Handling

Vehicle Servicing Products

Fleet Management Services

Scheduled Servicing

Acquisition & Disposal

Full Maintenance

Maintenance & Tyre Authoristation

Tyres

Fuel Card & Reporting

Registration & Fines Management

Roadside Assistance

 

Accident Management

 

Mini Lease / Relief Vehicle

 

Salary Packaging

 

Novated Lease Protection

SALE AND LEASEBACK

Free up your capital

TFS purchases the vehicle fleet, for either the written down value or market value, and then
leases it back to the customer. Each vehicle is given an appropriate lease term and kilometre
allowance to reflect its usage and ensure that the lease expiry falls within the company vehicle
replacement policy.

If the customer elects to have a fully maintained operating lease, TFS will include repairs
and maintenance, and registration/CTP renewals in the lease rental. Tyres are normally
managed by TFS on a need basis and recharged.

Additional services such as roadside assistance, accident management, and fuel card
are also available.

Customer benefits

  • Frees significant capital to reinvest. The transaction can be structured to make the
    purchase price match the customer's tax and profit or loss requirements.
  • Simplified fleet policy enables a customer to choose a future transaction date knowing
    that beyond that date all the capital, management and administration of their fleet
    has been outsourced.

Reduces the number of head hours spent managing the fleet. Internal resources can be
readily reallocated after the transaction, rather than continuing to manage a diminishing fleet.

TERM PURCHASE

Ownership security

Term Purchase (Commercial Hire Purchase) transfers the risk of ownership to the customer
and legal ownership when the final instalment is received.

TFS provides a fixed interest rate for terms between 12 months and 60 months. Customers
may fully pay in equal instalments or specify a balloon, depending on cash flow preferences.
The balloon can generally be refinanced at maturity. The customer can pay out the vehicle
at any time.

Features and benefits

  • Provides 100% financing for the GST inclusive price of the vehicle at a known monthly cost.
  • The liability and asset are both shown on the balance sheet.
  • Rental payments are not tax deductible. Depreciation and the interest portion of the
    loan are usually fully tax deductible, which may be attractive for assets with higher tax depreciation allowances.

No excess kilometres apply and either a profit or a loss can be applied on eventual sale.

NOVATED LEASE

Cost effective employee benefit

A novated lease is a three way agreement. The employee, as lessee, and the employer enter
into a novated lease agreement with Toyota Financial Services (TFS) as lessor. Under the
agreement, all of the lessee's obligations to pay lease rentals and agreed operating costs are transferred ("novated") to the employer. The employer then makes such payments to TFS on
behalf of the employee for the term of the novation - or until employment ceases, should it
occur during the lease term.

Under a novated lease employees can choose their own vehicle, and have their employer
pay vehicle lease and running costs from their gross salary, potentially giving them a higher
disposable income.

TFS can also administer post tax employee contributions to minimise Fringe Benefit Tax liability.

Features and Benefits

  • Removes liability and asset from balance sheet
  • Reduces administration - one invoice for all novated vehicles
  • Creates a cost effective employee benefit
  • Vehicle leaves with the employee

Reduces payroll tax and Work cover expenses (subject to State laws)

OPERATING LEASE

Effective management

An operating lease enables the customer to outsource vehicle acquisition and disposal, and
passes the risks of ownership onto TFS. The customer may choose any or all of the Fleet
Management Services as part of their monthly payment. Features and benefits:

  • 100% funding at a known monthly cost.
  • Simplified administration as lease rentals, normally fully tax deductible (except Luxury
    vehicles), are expensed at the same rate in the profit and loss account and cash flows.
  • No liability or asset is shown on the balance sheet.
  • Maintenance, tyres, registration and other running costs can be built into the rental to
    provide the customer with a known fixed expense for varied terms and kilometres.
    No maintenance risk.
  • Fleet servicing is managed by qualified mechanics using TFS' purchasing power on
    vehicles, labour and parts. Safety and OH&S compliance at low cost.

The vehicle is returned to TFS at the end of the lease term, with no residual value liability.
Eliminates risk on resale.

FINANCE LEASE

Finance partnership

A finance lease transfers the risk of ownership to the customer without transferring legal
ownership. TFS provides a fixed interest rate for terms between 12 and 60 months. A residual
value is set in accordance with ATO guidelines for each asset class.

At the conclusion of the lease, the vehicle is returned. TFS may extend the lease for a further
term, or allow the customer to payout the lease and enter into a new lease agreement on
another vehicle.

Features and benefits:

  • Provides 100% financing at a known monthly cost.
  • Lease rentals, normally fully tax deductible, are treated as lease amortisation and
    interest cost in the profit and loss account.

Residual risk remains with the Lessee. No excess kilometres apply.

Fleet Services

Managing Your Fleet

Customers can choose from a comprehensive suite of products and services.

You can select the most suitable services for each lease, based on our unbundled approach,
which may differ depending on the vehicle type, its location and what it will be used for.

Services include:

  • Repairs and Maintenance Authorisation and Cost Control
  • Tyre Management
  • 24 Hour Roadside Assistance
  • Accident Management
  • Fuel Card
  • Registrations / CTP
  • Management of Fines and Infringements

Fleet Reporting

Contract Management

Contract Management and Service Delivery

Quoting, ordering and delivering you your vehicles is the straightforward part of our
relationship. Where we believe we really add value is determined by how effectively we
manage your fleet, drive down your costs, and improve your vehicle policy. Some
components of this all encompassing service delivery are:

  • Complete Service and Coverage
  • Car Policy design
  • Electronic ordering
  • Personal delivery
  • Transparent End of Lease Process
  • Cost Reduction Initiatives

Regular Fleet Reviews