A Novated Lease is becoming a great method for financing an employees next car purchase. The Novated Lease provides many benefits to all parties involved.

Employer benefits

As well as being able to offer employees the extra incentive of a car in their remuneration package, a novated lease also

• takes away the burden of managing a company car fleet
• takes away the necessity of recording the car as an asset or liability in the business
• offers an income tax deduction for all payments made under the agreement, including lease rental payments
• offers many employers, if registered for GST, the ability to claim an input tax credit on the GST paid on the lease, (t here are exceptions to this)
• takes the responsibility of making lease payments away from the employer as soon as the employee leaves their job

Employee benefits

Novated leases offer employees

• tax savings through salary sacrifice arrangements as the lease payments are taken out of their pre-tax wages
• freedom to choose the vehicle they want
• there could be a tax free profit when vehicle is sold
• the unconditional use of the vehicle for both work and private purposes
• the option to own the vehicle outright at the end of the lease term
• If an employee leaves their present job before paying off the lease agreement, they have the option to take the vehicle with them to their new employer (if the new employer agrees to take over the novated lease), or they can arrange lease payments themselves

Call the team at Advance Car Loans on 1300 798 873 for the lowest price with a new car discount and fastest delivery on all new cars. We can also provide you access to the best car loans in the country including novated lease, fully maintained novated lease, CHP, chattel mortgage, lease, secured car loan and many other car loan products.