Novated Lease

Novated Car Lease

A novated car lease is an agreement between the employee, their employer and the company financing the vehicle. It is becoming a popular way for businesses to provide employees with company cars.

Essentially the agreement is similar to a car lease agreement between the employee and the lender. The novation agreement is then entered between all parties with the responsibility for the lease rental commitment moving to the employer so long as the employee remains with the business. When the employee leaves the business, the novation ends and the ongoing responsibility for the lease returns to the former employee.

Advantages of a Novated Car Lease

Vehicles acquired this way offer benefits to both employees and the business:

• The employer can remove the vehicle fleet from their balance sheet.
• It also in some circumstances the ability to eliminate the administration and maintenance costs with managing a fleet.
• Gives the employer the ability to negotiate payment of vehicle running costs with employees.
• Freedom for employees to choose their own vehicle while enjoying the benefits of a company car.
• No on-going business responsibility for the vehicle if the employee should leave.

Call us for more information about a novated car lease or any other business car finance. 1300 889 669 or apply online.

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