What is a Novated Lease? Novated Lease Explained.
A novated lease is a particular type of finance lease used by individuals in Australia for the specific purpose of purchasing a new or used vehicle. Similar to a car lease, a novated lease in Australia involves obtaining finance for a new or used vehicle in return for regular repayments over a fixed period of time. The difference is that your employer agrees to make the payments out of your pre-tax salary through a novation agreement.
Therefore a novated lease is a three way agreement (called a ‘deed of novation’) – between you, the employee, the finance company and your employer. The employer must commit to making the novated lease repayments whilst you are employed by them, although if you cease employment, the vehicle ownership as well as the finance commitments remain with you.
Novated leasing has become increasingly popular in recent years as Australian companies move away from traditional company cars and look for more incentives for employees.
Benefits of Novated Leases
Applying for a Novated Lease
Applying for a novated lease with Fincar is easy. We do all the hard work for you, explain the process – can assist with selection of the right product for your requirements, prepare the all paperwork and submit it to the most appropriate novated lease Australia lender. As a broker we are not limited to any particular finance company in Australia – we can shop around for the lowest interest rate, help you avoid ‘hidden’ fees and charges and most of all prepare the paperwork with the minimum of fuss and maximum of professionalism.
For more information or to request a free, no obligation novated lease quotation, click here or call 1300 346 227 and speak with one of our expert finance consultants who will explain our service.
NEW!! – Try our fantastic Novated Lease Calculator or download our Novated Leasing Made Easy guide