If you’re an employee who has the option of receiving a car as part of their salary package arrangement, this could be for you. Your employer pays the rental payments to Lender and you enjoy full use of the vehicle.
How it works
The employee chooses a car and leases it from Lender.
The employee then novates the lease to their employer, who assumes some of the employee’s rights and obligations under the lease, including responsibility of meeting the lease rentals as part of their salary package for as long as the employee remains with the employer.
The employee remains the registered owner throughout the lease and the contract is in their name.
If the employee leaves the company, the car remains with the employee. In this situation generally the employee or their new employer takes over the payments.
The original employer is not left with an unwanted car and the employee keeps the vehicle.
Vehicle running costs are excluded from a Novated Lease.
Features and benefits
Use the vehicle without the hassle of budgeting for rental payments – your employer looks after this for you
Option to acquire use of the vehicle without a deposit or the hassle of being reimbursed from your employer
Your choice of the car you acquire and where you acquire it from
Enjoy the convenience of retaining the car even if you move employment.
Your employer won’t be left with an unwanted car if you leave
Your employer can provide you with the benefit of a vehicle without reflecting it on their balance sheet.
Flexible rental time frames and options
Lease terms available from between 1 – 5 years so you can manage your budget
Make rental payments monthly, quarterly, semi-annually or annually
Rental payments are fixed once your contract starts so you always know what your rental payments will be.
Before you start, you will need to:
I.be looking to lease a car worth more than $10,000 (before GST)
II.be employed by a business registered in Australia
III.have a good credit history.