The financial responsibilities and ownership of the vehicle remains with the Employee taking out the Novated Lease even if they decide to leave the business. It may also be available because of government employment work place incentives known often as vehicle salary sacrifice which can be a great incentive for employees.
What is a Novated Lease?
Novated car lease is similar to a standard leasing agreement and involves scheduled repayments against new car finance or used car finance. What makes Novated lease different is that the repayments go directly from your gross income, before it is taxed. It is essentially an agreement for motor finance that includes the employer, the employee and the finance company.
Advantages of a Novated lease
Some employers may want to offer employees incentives that will motivate them to work better and stay committed to the company or organization or package it as part of an employment salary.
The Novated Car Lease is found to be useful by both the buyer as well as the finance company as there is a certain amount of security attached with it. The employer will continue to make repayments from the pre-tax salary for as long as the employee is working with them.
The information above is general in nature and does not take into account your particular finance requirements, financial situation or investment needs. DoMyQuote is not qualified to provide this information, our mission is to forward your quote request to our network of brokers that DoMyQuote has and is continually pre-screening to provide you with the qualified brokers close to you that we believe will provide good advice, professional service and competitive prices from the most appropriate insurance companies in Australia to satisfy your requirements