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| Fleet Sales - Novated Lease |
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A Novated Lease is for employees who have the option of receiving a vehicle as part of their salary package, or have the ability to salary sacrifice ( Novate) the lease repayments pre-tax. The employer pays all rental payments to the nominated finance company and the employee enjoys full use of the motor vehicle. How a Novated Lease Works: The employee chooses a car and leases it from the nominated finance company. The employee then Novate's the lease to their employer, who assumes all the employee's rights and obligations under the Novated lease, including responsibility of meeting the lease rentals. The Novated Lease is in the name of the employee who remains the registered owner throughout the Novated Lease and keeps effective control of the vehicle at all times. If the employee leaves the company, the vehicle remains with the employee. In this situation, generally the employee takes over the payments or gets another employer to Novate the payments. This means, the original employer is not left with an unwanted car and the employee keeps the vehicle.  Benefits of a Novated Lease: Novated Lease Benefit's for employees Use of a vehicle without having to budget for repayments. Choice about what car you buy and where you buy it from. Retain the car if you change employment. Novated Lease Benefit's for employers If the employee leaves, the company is not left with an unused vehicle. The employer can provide the employee with a vehicle without having to reflect it on its balance sheet. The repayments are fixed throughout the life of the loan. Click here to fill in the online Enquiry Form or phone 02 9872 8000 and one of our friendly consultants will be happy to answer any questions you may have. |