Novated Lease - Overview

A novated lease has become an increasingly popular form of vehicle financing over recent years. A novated lease combines many features of more traditional forms of vehicle finance to deliver some attractive benefits for both employers and employees.

A novated Lease is an agreement between your employer, yourself (the employee) and the financier, where the obligation to meet the repayments under the finance lease is with the employer.

With a novated lease agreement, you own the vehicle and have the right to take it with you should you change jobs and, structured correctly, there may be tax advantages with your remuneration package.

As with other leasing structures, repayments with a novated lease are flexible and amounts depend on the term, interest rate, amount borrowed and the residual payment.

Benefits of a novated lease for the employee include:

Greater flexibility with the choice of a vehicle

Financing of the vehicle may be paid with pre-tax dollars

Option to own the vehicle at the end of the novated lease term

The vehicle may be leased for 100% private use

More than one vehicle may be leased with employer consent

Benefits of a novated lease for the employer include:

An easy and cost-effective way to add value to an employees remuneration package

Time and costs associated with management and disposal of the vehicle are not the employer's responsibility

On termination of the employees employment or novated lease, the responsibility of the vehicle is passed on to the employee

Other issues that will need to be addressed before commencing with a novated lease include (note that through partnership arrangements, Private Fleet are able to provide a complete solution to the following issues)

Salary Costing
FBT (fringe benefits tax) calculations
Fuel costs, maintenance costs calculation
Current vehicle disposal

Please check out our Novated Lease Calculator!

12 Steps To Novated Lease Success!
1	Establish whether current employer offers salary packaging and novated leases or is agreeable to investigating the benefits of such a lease.
2	Obtain advice on novated leasing. Ideally this should be obtained from multiple sources such as: your accountant your financier a salary packaging company Ensure that accurate modelling of personal financial implications is performed based on various scenarios.
3	Decide on a vehicle (take advantage of resources on our website or feel free to give us a call)
4	Reconfirm that approximate vehicle purchase price fits in with previous novated lease modelling.
5	Engage Private Fleet to source vehicle and negotiate fleet discount.
6	Choose novated leasing financier if not already known. (we can help here by putting you in touch with a partner novated lease financier or novated lease broker)
7	Private Fleet will arrange for supplying dealer to issue tax invoice directly to chosen financier.
8	Finance should be approved (if not, order will be cancelled and options re-evaluated as order is 'subject to finance').
9	Deed of novation prepared and signed by relevant parties
10	Vehicle delivered with full tank of fuel
11	Payroll or HR department of employer sets up deductions for employees salary package.
12	Client welcomed to Private Fleet membership program.

Please enquire now and we'll organise for one of our novated lease specialist partners to get in touch for a free, no obligation consultation.

_{Options other than a novated lease ? Find out about leases , hire purchase , car loans and operating leases}

Visit our novated leasing calculator , contact a finance consultant or call 1300 303 181 for more information.

Click here to save thousands off the purchase price of your new vehicle

Remember by engaging Private Fleet to do the legwork with your new vehicle purchase, you not only save time and hassle, by saving thousands of dollars off the purchase price ,and, by combining this with the benefits of salary packaging and your novated lease, you'll be sitting in the driver's seat in no time at all!

Novated Lease - Overview

12 Steps To Novated Lease Success!

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