This type of finance is ideal for employees who have the option of receiving a car as part of their salary package. The employee leases a car and the employer agrees to take on the employee’s obligations under the lease, paying the monthly lease rentals and set up costs associated with the lease via a pre-tax salary sacrifice by the employee. Fringe benefits tax applies to the pre-tax payments and an employee should consult their accountant’s advice as to the net benefits or losses involved in the payments before entering into such an agreement. Higher salaries are usually better suited to novation agreements.

Product Benefits For Employee’s:

• Same regular benefits of a Finance Lease
• Tax effective – repayments are made out of pre-tax income
• Choice of vehicle by employee
• Portable – If you change jobs you can take the vehicle and lease with you

Product Benefits For Employer’s:

• No excess vehicle if employee leaves
• Employer can provide more attractive remuneration package, and therefore attract the employee’s they want
• Reduced administration time and costs (compared to company vehicles)
• The employer pays less payroll tax and superannuation and worker’s compensation insurance premiums.

To proceed with your car loan or if you require a car loan quote, simply fill out our enquiry form or call us on 1300 104 107, and one of our qualified finance consultants will contact you to complete your application.