Novated Lease

In a Novated Lease, use your position as an employee of a company, and lease a car from the financier using a Finance Lease. You then sub-lease the car to your employer via an operating lease. Your employer enters an agreement, which makes it responsible for meeting the payments. This is the ideal arrangement for those who have the option of receiving a car as part of their salary package.

Who can benefit

Business and corporate professionals who require a flexible leasing package whereby the employer pays all lease rentals to the financier and the employee enjoys full use of the vehicle. This is a great solution for those who use their vehicle for work purposes and are on salary packaging or a similar arrangement with their employer.

Key features

The lease is taken out in your name and your employer signs a novation agreement taking on repayment responsibilities.
The vehicle can be purchased without capital outlay.
In the event you change companies the vehicle remains yours.
Your employer pays the lease rentals directly to the financier.
The employer can provide the employee with a car without having to show it on its balance sheet.
You have complete choice what you buy and where from.

Benefits

You have the use of the vehicle without having to budget for the repayments.
You can purchase the vehicle without deposit or the hassle of seeking reimbursement from your employer.
If you leave your current company, the company is not left with an unwanted car and you're not left without a wanted car.
There are numerous tax benefits to the employer as with the Finance Lease.
You have control over what type of vehicle you purchase, including accessories, colour, etc.

GST

Finance lease agreements are subject to GST. GST is payable on lease rentals, early terminations and residual values.

At Ray Backhouse – Lifespan Financial Services we have unique partnership arrangements with a number of experienced and professional accounting and financial planning firms that can provide you with the specialist advice for your particular situation or type of business. This network of professional services ensures that your interests are coordinated in a manner that delivers the best results across all aspects of your financial circumstances.

Interest rates

The interest rate is fixed throughout the term of the loan.

Fees and charges

An establishment fee is payable and includes GST.
Fees cannot be financed and must be paid by cheque at the time of signing the documents.
Monthly rental payments may be subject to GST.
Pre-determination fees may apply.

Repayment Schedules

Monthly
Yearly
Quarterly
Semi Annually
Seasonally