A novated lease has become an increasingly popular form of vehicle financing over recent years. A novated lease combines many features of more traditional forms of vehicle finance to deliver some attractive benefits for both employers and employees.This type of lease is an agreement between your employer, yourself (the employee) and the financier, where the obligation to meet the repayments under the finance lease is with the employer.

With a novated lease agreement, you own the vehicle and have the right to take it with you should you change jobs and, structured correctly, there may be tax advantages with your remuneration package (Your accountant can help you with any tax advice). As with other leasing structures, repayments with a novated lease are flexible and amounts depend on the term, interest rate, amount borrowed and the residual payment.

Benefits of a novated lease for the employee include:

Greater flexibility with the choice of a vehicle

Financing of the vehicle may be paid with pre-tax dollars

Option to own the vehicle at the end of the novated lease term

The vehicle may be leased for 100% private use

More than one vehicle may be leased with employer consent

Benefits of a novated lease for the employer include:

An easy and cost-effective way to add value to an employees remuneration package

Time and costs associated with management and disposal of the vehicle are not the employer's responsibility

On termination of the employees employment or novated lease, the responsibility of the vehicle is passed on to the employee

Contact us now to find out how we can help with your leasing requirements

Click on these links below for more information on Leasing...

Hire Purchase
Standard Lease
Chattel Mortgage


Home (Click here if you don't see the navigation menu)