Finance Features - Novated Lease: Drive the car you want |
| Purpose |
- For employees who have the option of receiving a car as part of their salary package. The employer pays all rental payments to the financier and the employee enjoys full use of the motor vehicle.
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| How it works |
- The employee chooses a car and leases it from the financier.
- With their employer’s prior agreement, the employee then novates the lease to their employer, who undertakes the responsibility of meeting the monthly lease payments.
- The contract is in the name of the employee who remains the registered owner throughout the lease and keeps effective control of the vehicle at all times.
- If the employee leaves the company, the vehicle remains with the employee. In this situation the employee takes over the payments or negotiates with a new employer to make the payments. This means, the original employer is not left with an unwanted car and the employee keeps the vehicle of their choice.
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| Product Benefits |
| Benefits for employees |
- Use of the vehicle without having to budget for the repayments.
- Option to buy the vehicle without a deposit or the hassle of being reimbursed from your employer.
- Complete choice about what car you buy and where you buy it from.
- Retain the car even if changing employment.
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| Benefits for employers |
- If the employee leaves, the company is not left with an unwanted car.
- The employer can provide the employee with a car without having to reflect it on its balance sheet.
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| Interest rates |
- The rentals are fixed throughout the life of the loan.
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| Term |
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| Loan amount |
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| Repayment frequency |
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| Repayment methods |
- Direct debit and periodical payment from a nominated bank account or BPAY®.
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