Novated Lease
Smart Perth companies use Novated Lease to benefit their employees
Novated Leases are salary packaging arrangements where an employer, employee and finance company work together to provide vehicle financing with significant tax advantages for the employee.
A novated lease is a vehicle finance agreement between the employer, employee and finance company where the obligation to meet repayments on the finance rests with the employer. However, ownership of the vehicle lies with the employee and they do have the right to retain ownership of the car if they change jobs.
Novated Leases are often used by companies who would normally provide a company car, but want to offer their staff flexibility in their choice of car.
Repayments on a Novated Lease are flexible and calculated based on the term, interest rate, amount borrowed and the residual payment.
Why should an employer consider a Novated Lease for their employee?
- It is a cost effective benefit you can offer to staff as part of their salary package.
- Your fleet is reduced, saving you time and money in maintenance and ongoing costs.
- The responsibility to dispose of the vehicle at the end of the novated lease lies with the employer, again saving you considerable time and money.
What are the benefits for the employee?
- The employee chooses the vehicle
- You may be able to pay for your lease using pre-tax dollars
- At the end of the lease you can choose to gain outright ownership of the vehicle
- Vehicles can be leased for private use
- With your employer's consent, you may lease more than one vehicle
Novted Lease is just one form of Vehicle Equipment Finance - you may also consider Hire Purchase, Finance Lease, Chattel Mortgage or Low Doc Finance.
Talk to one of our qualified mortgage brokers by filling in the online form or phoning 08 9317 1900.
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Tel. 08 9317 1900
