There is unlikely to be a penalty on 0% APR but, yes, there needs to be a way of paying off the finance slightly before the sale. A dealer etc will arrange this for you.
There is no PX in this case as he's not PX'ing for a lease.
I use a novated lease over here for every car. Novated simply means my employer leases the car and allows me to sign for the lease to pay it etc. I am the owner as in responsible for the payments to the lease company my employer uses etc and my name and home address is on all the paperwork. The dealer gives the lease company the fleet rate the lease company attracts.as the purchase price excluding GST (VAT). and that amount is what is borrowed to buy the car.
Anyway the leases all work by charging a monthly amount for the loan part of the lease. The loan is 100% with no deposit (ours is tied to the tax rules so actually a deposit is limited to I think 10% if you really want to pay one). That amount is a simple balloon loan with the value of the car after the lease period stated at the start. That amount excludes GST (VAT as well). Again ours have some daft tax rules about what the value can be after X years so it may or may not be realistic for the chosen make and model.
Then they allow so much per year for insurance, fuel, servicing and maintenance. Our novated leases then allow salary sacrifice for the running costs part and that is all GST free as it counts as a "company car", plus after tax for the loan (near enough). The costs are all charged at the lease company fleet rates so usually cheaper. For example I had a Holden (Vauxhall) Captiva with tyres that retailed here at $620 per tyre fitted. The bill (that I don't see until the amount appears in my lease account) was $420 per tyre. There is a tax man charge (like your BIK) for assumed 20% private usage of a "company car" which is added on to the numbers so it is "invisible" and always there for every car. For virtually all mileages driven here this still makes the novated lease cheaper.
The fund builds and wanes as you get things done, buy fuel on the cards etc. If I build up too much I change the kms (over the lease period) to less and the amounts per pay change. Then costs exceed payments and the excess is used up. As an example here are my numbers for an MY21 Outlander PHEV - obviously slightly different lease setup and very different currency/costs.
| Fuel | $1,094.00 |
| Maintenance | $1,588.66 |
| Tyres | $564.34 |
| Registration | $950.00 |
| Insurance | $1,972.93 |
| LeaseGuard | $507.60 |
| Autocredit Protection | $0.00 |
| Management Fee | $204.00 |
| Annual Finance Payment | $11,178.36 |
| Before Tax Contribution | $6,365.87 |
| After Tax Contribution (inc. GST) | $12,863.42 |
That is for 5 years at 30,000km a year./ When I want to change the car I can ask the lease company how much they will give me for it, make a private sale, or trade it in. Or pay-out the amount left on the loan if before the 5 years or the residual value if at the 5 years and own the car outright. The private sale is the trickiest since you need to pay the amount left on the loan before the ownership legally changes from you to the buyer. I always trade-in though. Since the next car is always another novated lease I negotiate an amount that at least exceeds the amount left on the loan. The dealer still invoices the full cost of the new car to the lease company and pays the amount left on the loan. I get any excess left in cash from the dealer. When the new car is ready to pick up I drive the old one in, walk to the new one and drive away.
There is most certainly PX allowed even if the dealer pays you all of it.
The lease scheme there looks like a normal company lease scheme without the novation of the lease to the employee. All employee costs are pre-tax and the employer is the "owner" with the lease company paying all costs as though it is a company car. The lease company doesn't give you the details we get here - it is just all lumped together as a cost to you. The amounts will be very different but the principle is the same. The employee pays the costs plus a fee to the lease company. That fee is the "profit" and it is generally small - their large profits come from being large and operating hundreds or thousands of leases. without the detailed breakdown and actual costs being provide against a fund like mine are, there may be additional profit factored in to the monthly amount. It won't be too much looking at the example though....
I'm a big fan of these all-in company leases - the novation over here is better still for me as it is my car. We used to have reverse novated leases which the tax-man banned. That one the employee was the owner but the company remained the "owner" for all costs so all was GST free. Most employers then chose not to charge the employee the GST so savings were even more.....
Bottom line is the lease will be hassle-free whether you are named as the "owner" or not. The insurance should be "yours" and count toward NCB (I would check that as it is the main difference for many insurance companies between a car that is "yours" and a company car. You can see mine is huge per year but that is any driver with a licence - including L and P (provisional) - with under 21 and then under 25 paying an additional excess for a claim. My choice as I lend my car to "anybody" and don't care about scrimping for named driver only) and the benefit of paying each payday before you get the money in the bank becomes easy as....
With the other things thrown in they are simply including those at cost/small profit margin in their price per month. The only downside would usually be the tax-man jacking up the BIK - I suspect the contract includes clauses that allows the amount per month to change for that occurrence.
