Oly.com.au Review

Based on checking the website, Oly.com.au appears to be a platform offering novated leases for vehicles in Australia. While the site presents a slick, modern interface with detailed calculators and information, the very nature of a novated lease, which involves interest-based financing, makes it problematic from an Islamic perspective. The core concept of Riba (interest) is strictly forbidden in Islam, and since a novated lease is essentially a structured finance product built around interest, it inherently goes against Islamic financial principles.

Overall Review Summary:

Website Focus: Novated leases for new and electric cars in Australia.
Key Offerings: Facilitates car payments, on-road costs, and tax savings through salary packaging.
Calculators: Provides various calculators for comparing novated leases, electric cars, and running costs.
Information: Offers articles, FAQs, and detailed explanations of novated leasing benefits.
Ethical Standpoint (Islamic): Not permissible due to the involvement of Riba (interest) in the financing structure.
Transparency: Decent transparency regarding calculator assumptions and disclaimers, though these highlight the interest component.
Customer Support: Contact form and phone number provided for enquiries.
User Experience: Website seems user-friendly and visually appealing.

The Oly.com.au website aims to make novated leases accessible to more Australians, promising significant tax savings by bundling car payments and running costs from pre-tax salary. They highlight benefits like upfront GST savings and no deposit requirements, framing it as a “big company perk” for everyday employees. They even feature specific electric vehicle (EV) discounts, which further incentivise this financing method. However, for those seeking to adhere to Islamic financial guidelines, this model presents a clear conflict. The entire mechanism of a novated lease is predicated on borrowing and lending with interest, which is the very definition of Riba. This means that while the financial incentives might seem attractive, the underlying transaction mechanism is not aligned with ethical Islamic principles. Therefore, it’s crucial to explore alternatives that offer vehicle acquisition without engaging in interest-based agreements.

Best Alternatives for Ethical Vehicle Acquisition (Islamic Perspective):
Since Oly.com.au deals with novated leases, which involve interest (Riba) and are therefore not permissible in Islam, the focus for alternatives shifts to ethical, Riba-free methods of vehicle acquisition or transportation. Here are some alternatives:

Savings & Cash Purchase
- Key Features: Direct purchase with accumulated funds, complete ownership, no interest payments, no debt.
- Average Price: Varies significantly based on vehicle choice.
- Pros: 100% Sharia-compliant, full ownership, no ongoing financial commitments (other than running costs), potential for resale value.
- Cons: Requires significant upfront capital, may take time to save, limited immediate access to high-value vehicles.
Islamic Car Finance (Murabaha/Ijara)
- Key Features: Sharia-compliant financing structures where the bank buys the asset and sells it to the customer at a profit (Murabaha) or leases it to them with a promise to sell at the end (Ijara). No interest is charged.
- Average Price: Monthly payments based on the agreed profit margin or lease terms.
- Pros: Sharia-compliant, allows acquisition of a car without upfront cash, structured payments.
- Cons: Availability might be limited to specific Islamic financial institutions in Australia, may have different fees than conventional finance.
Public Transport Passes
- Key Features: Access to buses, trains, and trams within your city/region.
- Average Price: Varies by city, e.g., Myki (Victoria), Opal (NSW), TransLink (QLD) cards with various fare structures. A typical monthly pass could be $150-$250, depending on zones and usage.
- Pros: Environmentally friendly, cost-effective (no car payments, insurance, fuel), reduces traffic stress, promotes walking.
- Cons: Limited flexibility, not suitable for all travel needs (e.g., remote areas, carrying large items), potential for delays or crowded conditions.
Ride-Sharing Services (e.g., Uber/DiDi/Ola)
- Key Features: On-demand private transportation via mobile apps.
- Average Price: Varies per trip; generally more expensive than public transport for regular use but cheaper than car ownership for occasional trips.
- Pros: Convenient, flexible, no parking worries, good for occasional travel or when a car is not feasible.
- Cons: Can be expensive for frequent use, surge pricing during peak hours, availability may vary in regional areas.
Bicycles & E-Bikes
- Key Features: Personal, active transportation; e-bikes offer motorised assistance for easier riding.
- Average Price: Bicycles typically range from $300-$1500, E-bikes from $1000-$4000+.
- Pros: Healthy, environmentally friendly, low running costs, avoids traffic, can be integrated with public transport.
- Cons: Weather-dependent, limited carrying capacity, requires physical effort, safety concerns in heavy traffic.
Car Sharing Services (e.g., Car Next Door)
- Key Features: Access to a fleet of cars for short-term rental, typically by the hour or day, without the commitment of ownership.
- Average Price: Varies based on duration and vehicle type, typically $10-$20 per hour or $50-$100 per day, plus mileage.
- Pros: Access to a car when needed without ownership costs, good for occasional use, variety of vehicles available.
- Cons: Can be expensive for regular use, availability might be an issue in certain locations, booking required in advance.
Walking & Active Commuting Gear
- Key Features: Utilises personal mobility for shorter distances.
- Average Price: Minimal (cost of comfortable shoes, suitable clothing).
- Pros: Excellent for health, free, environmentally friendly, reduces stress, convenient for short distances.
- Cons: Limited to short distances, weather-dependent, not suitable for all travel needs.

Find detailed reviews on Trustpilot, Reddit, and BBB.org, for software products you can also check Producthunt.

IMPORTANT: We have not personally tested this company’s services. This review is based solely on information provided by the company on their website. For independent, verified user experiences, please refer to trusted sources such as Trustpilot, Reddit, and BBB.org.

Table of Contents

Oly.com.au Review & First Look

Alright, let’s talk about Oly.com.au. From the moment you land on their homepage, it’s pretty clear what they’re all about: novated leases. The design is clean, modern, and very Australian, aiming to make a somewhat complex financial product seem approachable and “legendary” – their words, not mine. They immediately hit you with the promise of “saving heaps on a new car” and how a novated lease isn’t just a legend, it’s “legendary.” It’s an intriguing opening, designed to hook you right in with the allure of tax savings.

Initial Impressions and User Experience

The site navigates quite smoothly. You’ve got clear calls to action like “Get started” and “Shop Cars,” which is exactly what you’d expect. The car browsing section is well-organised, allowing you to filter by brand (BYD, GWM, Hyundai, Polestar, Tesla, MG) – a good spread of popular models in the Australian market. They even have a “Wishlist” function, which is a nice touch for potential buyers. The site’s overall aesthetic leans into a friendly, vibrant vibe, trying to demystify what can often feel like a dense financial topic. It’s definitely built with the user journey in mind, making it easy to jump between understanding “How a novated lease works” and checking out their “Calculators.”

The Core Offering: Novated Leases

Oly.com.au’s primary offering is facilitating novated leases. They frame it as a way for employees to get “big business perks” without working for a big company. The fundamental idea is that you salary package your car payments and all on-road costs directly from your pre-tax salary. This, they claim, leads to significant tax savings. They illustrate this with an example showing a BYD Sealion 7 with an estimated $32,421 in tax savings over five years for someone on a $90,000 annual salary. These are big numbers, designed to grab attention.

Ethical Considerations and Islamic Finance

Now, here’s where we hit a snag from an Islamic finance perspective. The core of a novated lease, as presented by Oly.com.au, involves a financing arrangement where the car is leased to you, and payments are made from your salary. While the specific legal structure can vary, the financial mechanics usually involve interest (Riba), either implicitly or explicitly. Riba is strictly forbidden in Islam, and its involvement in any transaction renders it impermissible. The benefit of “tax savings” often stems from the structuring of these payments, which are tied to the interest-based nature of the lease.

The website does provide a disclaimer: “Oly recommends you seek professional financial and taxation advice before making any financial decisions regarding a novated lease.” This is standard practice for financial products, but it doesn’t change the underlying issue for those adhering to Islamic principles. The allure of “saving thousands of dollars in tax” is compelling, but it’s crucial to remember that financial gains derived from impermissible means do not bring true blessings. In Islam, wealth must be acquired and transacted in a manner that is just, equitable, and free from exploitation, which includes avoiding interest.

Unpacking Oly.com.au’s Features

Oly.com.au is quite feature-rich, providing a comprehensive set of tools and information to guide potential customers through the novated lease process. They’ve clearly invested in making the user journey as smooth as possible, from initial browsing to understanding the financial implications.

Extensive Car Shopping Integration

One of the standout features is their integrated “Shop Cars” section. This isn’t just a static list; it allows users to browse specific models from various popular brands like BYD, GWM, Hyundai, Polestar, Tesla, and MG.

Brand Filters: Users can easily narrow down their search by preferred car manufacturer.
Model Information: While not explicitly detailed in the provided text, a robust car shopping experience usually includes model specifics, images, and possibly even direct links to manufacturer sites for more details.
Wishlist Functionality: This practical feature allows users to save cars they’re interested in, making it easier to compare and return to them later without having to restart their search. It’s a small but effective way to enhance user engagement and retention.

Comprehensive Calculator Suite

Oly.com.au offers a suite of calculators designed to help users understand the potential financial benefits and costs associated with a novated lease. This is a critical component for any financial service website, as it allows for personalisation of the experience.

Novated Lease Compare Calculator: This tool would likely allow users to compare the costs and benefits of a novated lease against traditional car financing or outright purchase, highlighting the “tax savings.”
Novated Lease Calculator: A more direct tool to estimate the weekly, fortnightly, or monthly costs of a novated lease based on salary, car value, and lease length.
Electric Car Calculator: Given the push for EVs and government incentives, this calculator specifically addresses the financial implications of leasing an electric vehicle, including the “EV Discount.”
Running Cost Calculator: Helps users estimate the ongoing expenses of owning/leasing a car, such as fuel/charging, maintenance, tyres, registration, and insurance.

Educational Content and Resources

The website provides a significant amount of educational content, which is vital for a product as nuanced as a novated lease. They don’t just sell; they also aim to inform. Skinphysics.com.au Review

“How a Novated Lease Works” Section: A clear, step-by-step explanation of the process.
“Benefits of Novated Leasing”: Highlights the advantages, primarily focusing on tax savings and convenience.
“Insurance” Information: Addresses how insurance fits into the novated lease structure.
Electric Cars Section: Detailed explanations on “Petrol vs electric,” “How the EV Discount works,” and “Switching to an electric car.”
Video Explanations: The presence of videos (e.g., “How novated leasing works,” “Electric car savings with a novated lease”) indicates an effort to cater to different learning preferences, making complex information easier to digest.
Articles/Blog Section (“Learn from Oly”): Features articles like “Novated lease electric car: everything you need to know before you switch” and “Novated leasing vs buying outright: which is better for you?” This adds credibility and positions Oly as an expert in the field.

Employer Information and Partnerships

Oly.com.au also targets employers, which is crucial for a novated lease provider as employer participation is mandatory.

“Employers” Section: This likely details the benefits for businesses, such as offering an attractive employee perk without direct cost to the employer.
MMS Group Backing: The website prominently states, “Oly is backed by one of Australia’s largest and most trusted novated lease providers – MMS.” This affiliation with MMS Group (mmsg.com.au) adds a layer of perceived trust and credibility. For example, MMS has been in the salary packaging industry for over 30 years, serving a significant number of Australian organisations [Source: MMS Group website, mmsg.com.au].

Mobile App Integration

The mention of an “Oly app” that lets you “check your budget and submit claims on the run” is a significant feature for modern users.

Expense Claims: Allows for quick submission of receipts.
Budget Tracking: Helps users monitor their spending and lease budget.
Account Management: Provides convenience for managing the lease account from a mobile device.

Why Novated Leases Are Not Permissible in Islam

For individuals adhering to Islamic principles, understanding the permissibility of financial transactions is paramount. In the context of Oly.com.au and novated leases, the primary concern revolves around the concept of Riba (interest). While the specifics of each lease agreement can vary, the fundamental structure of a novated lease, as it operates in conventional finance, almost always involves interest, which is explicitly forbidden in Islam.

The Prohibition of Riba (Interest)

Riba is defined as an unjustified increment in borrowing or lending money, or in the exchange of certain commodities where one party gains an increase without a corresponding legitimate counter-value. The Quran and Hadith (sayings and actions of Prophet Muhammad, peace be upon him) are clear on its prohibition.

Quranic Prohibitions: Verses like Quran 2:275 state, “Allah has permitted trade and forbidden interest (Riba).”
Ethical Foundation: The prohibition of Riba is rooted in Islamic teachings that promote justice, equity, and the avoidance of exploitation. Interest is seen as generating wealth from mere money, rather than from productive effort, risk-sharing, or real economic activity. It can lead to economic disparity and instability.

How Novated Leases Involve Riba

A novated lease is essentially a three-way agreement between an employee, an employer, and a finance company. The finance company purchases the vehicle, and then leases it to the employee, with payments often structured through salary packaging.

Financier’s Role: The finance company provides the capital for the vehicle. In return, they expect a profit on this capital. In conventional leasing, this profit is typically structured as an interest charge on the financed amount, or an implicit interest rate built into the lease payments.
Time Value of Money: The core concept underpinning the finance company’s profit in a novated lease (or any conventional lease) is the time value of money, which is realised through interest. They are compensated for lending money over a period, and this compensation is Riba.
Implicit Interest: Even if the term “interest” isn’t explicitly used in the contract, if the cost of leasing the car over the term is significantly higher than its cash price, and that difference primarily compensates the financier for the deferral of payment, it falls under the definition of Riba.
Comparison to Permissible Alternatives: In Islamic finance, alternatives like Murabaha (cost-plus financing) or Ijara (leasing with a promise to sell) are used. In Murabaha, the financier buys the asset and sells it to the customer at a pre-agreed profit margin, with payments made in installments. In Ijara, the financier leases the asset to the customer and retains ownership, eventually selling it at the end of the lease. Crucially, these models avoid the direct charging of interest. The profit comes from the sale of an asset or the rental of an asset, not from the lending of money.

The Consequences of Engaging in Riba

Engaging in Riba has severe implications in Islam, both spiritually and socially.

Spiritual Condemnation: It is considered a major sin, with severe warnings in the Quran and Hadith.
Economic Injustice: Riba is seen as promoting economic injustice by allowing the rich to get richer without productive effort, while burdening the poor and indebted.
Lack of Barakah (Blessing): Wealth acquired through Riba is believed to lack barakah, meaning it may not bring true well-being or lasting benefit, even if it appears to yield financial gains.

Therefore, despite the apparent financial benefits and convenience offered by Oly.com.au’s novated lease arrangements, the inherent involvement of interest means it is not a permissible option for Muslims. It is always better to seek alternatives that align with Islamic finance principles, even if they appear less financially “attractive” in the short term, as the long-term spiritual and ethical implications far outweigh any perceived monetary gain.

Oly.com.au’s Transparency and Disclaimers

When evaluating any financial service, especially online, the level of transparency and the clarity of disclaimers are paramount. Oly.com.au includes various disclaimers, particularly around their calculators and the “legendary terms and conditions” section. This is a positive sign for consumer protection, but it also reveals the underlying conventional finance structure. Tohaadesign.com.au Review

Detailed Calculator Assumptions

Oly.com.au goes to some length to outline the assumptions behind their calculators. This is crucial because estimated savings can vary wildly based on individual circumstances.

Key Assumptions: They explicitly state assumptions like:
- PAYG tax rates effective 1 July 2024.
- Employee contribution method (pre and post-tax funds).
- Estimated annual operating costs (fuel/electricity, maintenance, tyres, rego, insurance).
- Residual cost calculated at 28.13% as per ATO guidelines.
- Inclusion of an indicative annual vehicle management service fee ($396.00 incl. GST) and a finance establishment fee ($475.00 incl. GST).
- Consideration of GST input tax credits being passed on by the employer.
- Specific conditions for electric vehicle FBT exemption, including the luxury car tax threshold ($91,387) and first use date (on or after 1 July 2022).
Illustrative Purposes Only: They clearly state that the calculator is “an educational tool only and should not be relied on for the purpose of making a decision about a financial product.” They also note that “Calculations produced are estimates only that do not take your personal circumstances into account.”
Recommendation for Professional Advice: They consistently advise users to “seek professional financial and taxation advice before making any financial decisions regarding a novated lease.” This is standard for complex financial products but highlights the need for individual due diligence.

The “Legendary Terms and Conditions”

This section, presented as an accordion disclaimer, consolidates various important caveats.

General Information: It reiterates that the information provided is “general information [that] doesn’t take your personal circumstances into account.”
Conditions and Fees: It states that “Conditions and fees apply, along with credit assessment criteria for lease products.” While common, the exact details of these fees are not immediately obvious without a direct quote or further interaction, which is typical for such services.
Credit Assessment: The mention of “credit assessment criteria” confirms that this is a credit-based product, implying a borrower-lender relationship, which often involves interest.
Commissions: Oly explicitly states, “Oly may pay and/or receive commissions in connection with its services.” This is a standard disclosure for brokers or facilitators of financial products, ensuring transparency about their revenue model.
Indicative Savings: The “Savings shown are indicative and reflect estimated tax savings over the full-term of the lease. Actual savings will depend on your personal circumstances and may vary depending on the vehicle model and price.” This manages user expectations, as the headline “thousands in tax savings” is an estimate.

Ethical Implications of Disclosures

While Oly.com.au’s transparency with disclaimers is commendable from a consumer protection standpoint, these disclosures inadvertently reinforce the Riba-based nature of the product. The mention of “finance establishment fee,” “interest rate used to calculate the weekly lease payment,” and the reliance on credit assessment criteria all point towards a conventional financing model. For an Islamic perspective, these disclosures serve as confirmation that the product involves interest, despite the careful language used to highlight tax benefits. The ethical stance remains that even with clear disclaimers, the underlying financial transaction is not permissible.

Oly.com.au Customer Support and Engagement

Effective customer support and clear engagement pathways are vital for any online service, especially one dealing with significant financial commitments like novated leases. Oly.com.au appears to offer multiple avenues for users to get in touch and engage with their services.

Contact Channels

Oly.com.au provides the standard methods of contact, making it relatively easy for prospective customers to reach out.

Online Contact Form: They offer a straightforward contact form where users can fill in their details (first name, last name, email, mobile, employer, preferred contact day/time, state, and what they need help with). This is a common and efficient way to handle initial enquiries.
Phone Number: A direct phone line (1300 328 182) is provided for those who prefer to speak with someone directly. They also specify their availability: “9am-5pm AEST Monday – Friday excluding public holidays.” This is helpful for setting expectations.
“Request a call” Feature: This implies that beyond just providing a number, they might have a system where users can specifically request a callback at their convenience, streamlining the initial contact process.

Service Availability and Responsiveness

The promise of getting a quote “within hours” indicates a commitment to quick turnaround times, which is a significant factor in customer satisfaction for financial services.

Quick Quote Turnaround: “Get in touch and, in most cases, an Oly expert will put together a quote within hours.” This suggests an efficient internal process and a focus on converting leads quickly.

User Engagement Features

Beyond direct contact, Oly.com.au uses other features to keep users engaged and informed.

“Learn from Oly” Articles/Blog: As mentioned earlier, their articles provide valuable content, keeping users on the site and positioning Oly as a thought leader in the novated lease space. Regular updates to this section would demonstrate ongoing engagement.
Social Proof/Testimonials: The phrase “People love Oly (can you blame them?)” and the claim that “Oly has changed the game by making novated leases available to more people” indicate an attempt to build trust through perceived popularity and positive user sentiment. While no explicit testimonials are presented in the provided text, such statements aim to create a sense of social proof.
Employer Section: Engaging with employers directly is a form of B2B customer engagement, crucial for the novated lease model. They highlight how Oly “levels the ‘car perk’ field by making novated leases available to small business staff.”

Ethical Stance on Customer Service

From an Islamic perspective, excellent customer service, transparency, and fulfilling promises are highly valued. While Oly.com.au appears to offer robust contact options and swift service, the fundamental issue remains the nature of the product itself. The convenience and efficiency of their customer support, while positive in isolation, do not negate the underlying impermissibility of Riba. It’s akin to a well-run establishment that offers a forbidden product – the service quality might be high, but the core offering remains problematic. Therefore, while appreciating the operational aspects, the focus for a Muslim consumer would still be to seek services that align with Islamic finance principles from the ground up.

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Oly.com.au vs. Traditional Car Finance: An Ethical Standpoint

When comparing Oly.com.au’s novated lease offering to traditional car finance, it’s essential to look beyond the immediate financial incentives and consider the ethical implications, particularly from an Islamic perspective. Both conventional methods, whether a novated lease or a standard car loan, fundamentally rely on interest, which makes them impermissible.

Novated Lease (Oly.com.au Model)

Mechanism: As detailed earlier, a novated lease involves a three-way agreement. The finance company buys the car, and you lease it from them, with payments generally deducted from your pre-tax salary. This structure aims to provide tax benefits by effectively reducing your taxable income.
Perceived Advantages (from Oly’s perspective):
- Tax Savings: Significant savings on income tax and GST on the car purchase and running costs.
- Convenience: All car-related expenses (finance, fuel, maintenance, insurance, rego, tyres, servicing) are bundled into one payment, often automatically deducted.
- Budgeting: Predictable monthly costs.
- Access to New Cars: Allows individuals to drive a new car without needing a large upfront deposit.
Ethical Disadvantage (Islamic Perspective): Forbidden (Haram). The entire structure is built upon the finance company charging interest (Riba) for the capital they provide to purchase the car. The “savings” are derived from a system that monetises debt and time, which contradicts Islamic economic principles.

Traditional Car Loan

Mechanism: You borrow a lump sum from a bank or financial institution to purchase a car. You own the car from day one, but you are indebted to the lender and make regular repayments, which include the principal loan amount plus interest.
Perceived Advantages:
- Ownership: You immediately own the car.
- Flexibility: More control over maintenance, selling the car, etc.
- Simplicity: A more direct loan-and-repayment structure.
Ethical Disadvantage (Islamic Perspective): Forbidden (Haram). This is a direct interest-bearing loan. The interest charged on the principal amount is Riba, and therefore, taking out a traditional car loan is impermissible in Islam.

Why Both Fall Short for a Muslim Consumer

Both novated leases and traditional car loans, as offered by conventional financial institutions, share a common fatal flaw from an Islamic standpoint: their reliance on Riba.

No “Less Haram” Option: There isn’t a “less bad” option between the two when both fundamentally involve interest. The mode of payment (salary sacrifice vs. direct bank transfer) or the perceived tax benefits do not alter the inherent impermissibility of the core financial transaction.
Focus on Blessings (Barakah): In Islam, the pursuit of barakah (blessings) in one’s wealth and livelihood is crucial. Wealth accumulated through Riba is considered devoid of barakah and can lead to spiritual and worldly detriment, regardless of apparent financial gains. The focus shifts from merely accumulating wealth to acquiring it through permissible and blessed means.

Permissible Alternatives (Revisited)

For a Muslim consumer, the comparison should not be between different forms of interest-based finance, but rather between interest-based finance and Sharia-compliant alternatives.

Murabaha: Where an Islamic bank buys the car and sells it to the customer at a cost-plus profit, payable in installments. Ownership usually transfers to the customer once all payments are made. The profit is derived from the sale of a commodity, not the lending of money.
Ijara (Leasing): An Islamic bank leases the car to the customer for a specified period, with ownership remaining with the bank. At the end of the lease, the customer may have the option to purchase the car at an agreed residual value. The profit is derived from the rental of an asset, not interest.
Cash Purchase: The most straightforward and undeniably permissible method, eliminating any debt or interest.

Ultimately, while Oly.com.au presents a seemingly attractive financial product for many Australians, its foundation in interest-based finance means it is not a suitable option for those committed to Islamic financial principles. The focus must always be on seeking avenues that align with divine guidance, ensuring both worldly benefit and spiritual well-being.

How to Avoid Novated Leases and Interest-Based Car Finance

Since novated leases and conventional car finance are problematic from an Islamic perspective due to their reliance on Riba (interest), the key is to proactively avoid these structures. This involves shifting your mindset from quick acquisition via debt to more patient, ethical, and sustainable methods of obtaining a vehicle.

Prioritise Cash Purchase

The most straightforward and unanimously permissible method is to save up and buy a car outright with cash.

Budgeting and Saving: Develop a strict savings plan. This might mean starting with a more affordable used car and gradually saving for an upgrade. Tools like budgeting apps, high-interest savings accounts (as long as the interest earned is given away in charity, as it is Riba), and disciplined financial habits are crucial.
Downsizing Expenses: Look for areas to cut down on discretionary spending to accelerate your savings.
Side Income: Consider generating additional income streams to boost your savings pool.
Researching Car Values: Understand the market value of the car you desire to set a realistic savings goal. Websites like RedBook.com.au or Carsales.com.au can provide good estimates for both new and used vehicles.

Explore Islamic Finance Options

While not as widely available as conventional finance, Islamic financial institutions offer Sharia-compliant alternatives.

Identify Islamic Banks/Financial Institutions: In Australia, the number of dedicated Islamic banks might be limited, but some conventional banks might have Islamic finance windows or partnerships. Research institutions like MCCA (Muslim Community Co-operative Australia) or other global Islamic finance providers who might operate locally or have partnerships.
Understand Murabaha: This is a popular mode. The institution buys the car and then sells it to you at a pre-agreed profit margin. You repay in installments. The profit is from the sale of an asset, not a loan.
Understand Ijara (Leasing): The institution leases the car to you for a period, and at the end, you can buy it. The payments are lease rentals, not loan repayments.
Consult Islamic Finance Scholars: If uncertain, always seek guidance from a qualified Islamic finance scholar or a reputable fatwa council to ensure the specific product offering is truly Sharia-compliant.

Embrace Alternative Transportation Methods

For many, car ownership isn’t always essential, especially in urban areas.

Public Transport: Utilise Australia’s robust public transport networks (trains, buses, trams). Invest in a travel pass (e.g., Opal Card in NSW, Myki in VIC, TransLink in QLD). According to Transport for NSW, weekly Opal card caps can significantly reduce travel costs for regular commuters compared to individual fares [Source: Transport for NSW, opal.com.au].
Bicycles and E-Bikes: For shorter commutes, a bicycle or e-bike can be a healthy, environmentally friendly, and cost-effective option. The average cost of a bike in Australia ranges from $300 to $1500, with e-bikes starting from $1000.
Walking: For very short distances, walking is the simplest and healthiest option.
Ride-Sharing Services: For occasional needs, services like Uber, DiDi, or Ola can provide convenient on-demand transport without the commitment of car ownership.
Car Sharing Services: Companies like Car Next Door allow you to rent a car by the hour or day, providing access to a vehicle without the overheads of ownership. This can be significantly cheaper than owning a car if you only need one occasionally. A study by the Australian Automobile Association (AAA) in 2023 indicated that the average weekly cost of owning a car in Australia can exceed $400, including fuel, registration, insurance, and maintenance, making alternatives much more appealing for infrequent use [Source: Australian Automobile Association, aaa.asn.au].

Long-Term Financial Planning

Avoiding interest-based products often requires more disciplined long-term financial planning. Theticketmerchant.com.au Review

Financial Literacy: Educate yourself on Islamic finance principles and ethical wealth management.
Prioritise Needs over Wants: Distinguish between what you truly need and what is a luxury, especially when it comes to vehicle choices.
Patience and Contentment: Cultivate patience and contentment with what is permissible and blessed, rather than rushing into transactions that might be financially convenient but spiritually detrimental.

By adopting these strategies, individuals can navigate the complex world of vehicle acquisition in Australia while upholding their Islamic principles, ensuring that their financial decisions are sound both in this world and the Hereafter.

Oly.com.au Pricing Structure (Based on Homepage Information)

While Oly.com.au doesn’t display explicit fixed pricing schedules for their services, the homepage text gives us a good indication of how the costs are structured within a novated lease and what hidden fees or variables might apply. It’s clear that the “pricing” is highly individualised, depending on the car, salary, and specific lease terms.

Estimated Costs and Tax Savings

The website primarily focuses on illustrating the benefits of the pricing structure through “estimated tax savings.”

Example Provided: For a BYD Sealion 7 with an annual salary of $90,000 and a car value of $58,502, the estimated tax savings over 5 years is quoted as $32,421. This isn’t a price, but a financial advantage stemming from the lease structure.
Calculators for Personalisation: The various calculators (Novated Lease Calculator, Electric Car Calculator, Running Cost Calculator) are the primary means by which a user can get a personalised “price estimate” based on their specific inputs (salary, car choice, lease length, annual kilometres).

Fees and Charges Mentioned in Disclaimers

The “Important information about calculations” and “Legendary terms and conditions” sections are where the specific cost components are subtly revealed.

Indicative Annual Vehicle Management Service Fee: An amount of $396.00 (incl. GST) is explicitly mentioned as being included in the operating expenses for calculator purposes. They note this fee “may vary depending on your employer.”
Finance Establishment Fee: A fee of $475.00 (incl. GST) is charged by the financier and included in the amount financed. This is a direct cost associated with setting up the lease.
GST on ECM Contributions: GST of 1/11th is payable on “ECM contributions” (Employee Contribution Method). While input tax credits may be refunded, this highlights a tax component users need to be aware of.
State Stamp Duty Rates: These are also applied and vary by state/territory.
Residual Value: A residual cost is calculated at 28.13% for novated lease as per ATO guidelines. This is the lump sum payable at the end of the lease term if you wish to own the car. This isn’t a recurring payment but a significant end-of-term cost.
Interest Rate (Implicit/Explicit): The disclaimer mentions that “The interest rate used to calculate the weekly lease payment (in the case of a novated lease) and the weekly repayment (in the case of a car loan) is the same.” This explicitly confirms that an interest rate forms the basis of the lease payments, even if it’s implicitly built into the “weekly cost” rather than shown as a separate line item.

What’s Included in the Lease Payments

The website details what is bundled into the “Features & inclusions” of a novated lease with Oly:

Car payments
Fuel or charging
Rego
Insurance
Tyres
Servicing

This bundling is a significant part of the value proposition, providing convenience and potentially allowing for GST savings on these running costs too.

Conclusion on Pricing Structure

Oly.com.au’s pricing structure is not a simple fixed price list. Instead, it’s a dynamic calculation based on individual circumstances, incorporating various fees, taxes, and a fundamental interest rate, all bundled into a single weekly/fortnightly/monthly payment to achieve tax benefits. The actual “price” a customer pays per week will depend entirely on their salary, the car chosen, and the lease term. For someone looking for full transparency on the total cost of the car over the lease period, including all fees and the implicit interest, they would need to engage with Oly directly to get a personalised quote.

From an Islamic perspective, the clear mention of an “interest rate” and the presence of finance establishment fees directly linked to that interest-bearing finance make this pricing model problematic. Even with the detailed breakdown of inclusions and the promise of tax savings, the underlying transaction mechanism is not permissible.

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FAQ

What is Oly.com.au?

Oly.com.au is an Australian online platform that specialises in facilitating novated leases for new and electric cars, aiming to help employees save on tax by bundling car payments and running costs from their pre-tax salary.

Is Oly.com.au a legitimate company?

Based on the website’s information, Oly.com.au is backed by MMS Group (mmsg.com.au), which is stated as “one of Australia’s largest and most trusted novated lease providers.” This suggests they are a legitimate operation within the conventional finance industry.

How does a novated lease with Oly work?

A novated lease with Oly involves a three-way agreement between you (the employee), your employer, and Oly (or its financier). Oly arranges for the finance company to buy the car, and you lease it back, with payments for the car and running costs deducted directly from your salary, often before tax.

What are the benefits of a novated lease with Oly?

Oly highlights benefits such as significant tax savings (due to salary packaging), upfront GST savings on the car and running costs, and convenience through bundling all car-related expenses into one payment.

Are novated leases permissible in Islam?

No, novated leases, as offered by conventional finance providers like Oly.com.au, are generally not permissible in Islam because they involve Riba (interest), which is strictly forbidden. The financial structure of a lease typically includes an interest component for the use of the financed capital.

What is Riba (interest) and why is it forbidden in Islam?

Riba is an unjustified increment in borrowing or lending money. It is forbidden in Islam because it is seen as an exploitative practice that generates wealth from mere money rather than from productive effort, risk-sharing, or real economic activity, leading to injustice and inequality.

Can I save tax with a novated lease from Oly.com.au?

Yes, Oly.com.au’s website suggests you could save thousands of dollars in tax due to the way novated leases allow you to pay for the car and running costs with pre-tax salary. However, these savings come from a financial structure that is impermissible in Islam.

What kinds of cars can I get through Oly.com.au?

Oly.com.au allows you to shop for various new car brands, including BYD, GWM, Hyundai, Polestar, Tesla, and MG, with a particular focus on electric vehicles (EVs) due to government incentives.

Does Oly.com.au offer an app for managing my lease?

Yes, Oly.com.au mentions a “handy app” that allows users to check their budget, submit claims, and manage their account on the go.

What is the “EV Discount” Oly.com.au mentions?

The “EV Discount” refers to government incentives for electric vehicles, which Oly.com.au suggests can allow you to pay for an eligible EV and its running costs from a 100% pre-tax salary with a novated lease, potentially making an EV as affordable as a petrol car. Mycruises.com.au Review

What are the estimated fees for an Oly.com.au novated lease?

Based on their disclaimers, an indicative annual vehicle management service fee of $396.00 (incl. GST) and a finance establishment fee of $475.00 (incl. GST) are mentioned. State stamp duty rates and a residual value (typically 28.13% of the car’s value) also apply.

What are the alternatives to a novated lease if I want to avoid interest?

Ethical alternatives include saving up to purchase a car with cash, or exploring Sharia-compliant financing options like Murabaha (cost-plus sale) or Ijara (Islamic leasing) offered by Islamic financial institutions.

How can I contact Oly.com.au customer support?

You can contact Oly.com.au via an online contact form on their website or by calling their phone number 1300 328 182 during their operating hours (9am-5pm AEST, Monday-Friday, excluding public holidays).

Does Oly.com.au provide calculators to estimate lease costs?

Yes, they offer several calculators, including a Novated Lease Compare Calculator, Novated Lease Calculator, Electric Car Calculator, and a Running Cost Calculator, to help users estimate potential costs and savings.

Does Oly.com.au offer insurance as part of the lease?

Yes, comprehensive car insurance is listed as one of the “Features & inclusions” that can be bundled into a novated lease with Oly.

What happens at the end of an Oly.com.au novated lease term?

At the end of the lease term, you will typically need to pay a residual value (a balloon payment) to take ownership of the vehicle, or you can usually re-lease or upgrade to a new vehicle.

Is Oly.com.au transparent about its terms and conditions?

Oly.com.au includes detailed disclaimers and “Important information about calculations” that outline the assumptions behind their calculators, various fees, and the general terms of a novated lease, encouraging users to seek independent financial advice.

Does Oly.com.au cater to small businesses?

Yes, Oly.com.au states they “levels the ‘car perk’ field by making novated leases available to small business staff,” indicating they work with employers of all sizes.

How quickly can Oly.com.au provide a quote?

Oly.com.au claims that “in most cases, an Oly expert will put together a quote within hours” once you get in touch.

What information does Oly.com.au’s calculator require?

Their novated lease calculator requires information such as your annual salary before tax, preferred car make, model, variant, lease length, and how much you drive each year, among other details. Splend.com.au Review