Similar to a Finance Lease, a Novated Lease gives you the ability to offer incentives to your staff with the ability to include a vehicle of their choice as part of their salary package, which may have potential tax benefits.
The employee and the employer enter into an agreement with Lexus Financial Services, with the employee's obligations and rights under the lease transferred to the employer. The employer then pays the monthly vehicle rental from the employee's salary and provides the vehicle for the employee to use as part of their salary packaging arrangement. This option reduces the need for overheads and reduces liability. And because the vehicle is not an asset of the business, residual risk value is also decreased.
A NOVATED LEASE OFFERS (FOR EMPLOYERS):
- Access to discounts on servicing and maintenance when vehicle running costs are managed by Lexus Financial Services.
- No residual risk, as the residual value obligations always remain with the employee.
- "Off the balance sheet" accounting for the employer.
- Employers don't get lumbered with excess vehicles if an employee leaves as they take the vehicle with them.
- The ability to offer a more attractive salary package and attract employees.
- Reduced admin time and costs in comparison to company vehicles.
- We can arrange Novated Leases for your employees, saving you time and money.
- Vehicle finance only available on a single vehicle.
If the employee changes their employment during the term of the Novated Lease, payment obligations are transferred to the employee. The employee may, however, be able to novate the lease to their new employer or take over the full repayments by refinancing under an alternative finance contract with us or another financier. This means an employer won't be left with unwanted vehicles if an employee moves on.