Company Cars and Novated Lease
Novated car leases are well established, as a means for business’s to offer their employees a car as a part of their salary package. The novated car lease agreement is a commitment between the employee the employer and the finance company.
While this may sound complicated it isn’t and has become common practices for many businesses. Essentially a novated car lease is a rental agreement whereby the employer will make monthly/weekly payments on behalf of the employee.
In the event, that the employee cesses employment with the employer the responsibility will reside with the employee to finish the noatved lease.
The advantage for the employee is that the lease payments are taken out of his/her salary before tax, which means that the employee will save a heap on tax reduce their GST and be able to choose a car of their choice. In addition the employer may offer discounts.
Advantages for Employees
Basically there are a tax benefits and GST savings by an employee taking out a novated lease.
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Choose the car you want
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Save on tax as the lease repayments are taken out before tax
Save on GST
Bulk discounts from employee
Advantages for the Employer
The employer can benefit from the novated car lease agreement.
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Removal of the car from the vehicle fleet from balance sheet
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No ongoing responsibility if the employ leaves
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Reducing cost of administration and maintenance
For a friendly no obligation free Novated Lease quote contact us.
Other business products which might interest you are:
Novated Lease
Finance Steps
- Get Pre-approval
- Find the Car you want
- Negociate the best price
- Drive your new car
Use our car loan calculator
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