Novated Lease – What is it and how does a novated lease work?
What is a novated lease? and how does a novated lease work?
A Novated Lease involves a three – way agreement between the Employee, the Employer and the finance provider. The Employee leases the vehicle directly from finance provider and enters into a
separate Novation Agreement with the Employer who agrees to cover the lease payments and all other associated costs during the period of employment. Liability for the vehicle continues to reside with the Employee.
Novated Leases allow Employees to select the vehicle of their choice and retain the vehicle even if their employment situation changes. Employers are able to ensure control rests with the Employee and therefore no asset or liability is recorded on the company’s balance sheet. Upon termination of employment, any liability including the liability of future payments rest with the Employee. Employers therefore minimise any administrative functions relating to the acquisition, management and disposal
of the vehicles. All accounts for payment will be forward to the Employer so long as the employee is in their employment.
If you would like to discuss Novated Leasing with a finance consultant, please feel free to contact Platinum Car Loans on 1300 554 553 to discuss your individual car financing requirements.
Other Finance Options
Platinum Car Loans offers you all the right car financing options, these include Commercial Hire Purchase, Chattel Mortgage, Car Lease, Finance Lease, Novated Lease, Operating Lease and all Consumer Secured Car Loans.
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By car blog, July 11, 2010 @ 5:00 am
I like What is a Novated Lease? How does a Novated Lease work … and find the best thing from here. Thanks Friend.