WHAT IS A FULLY MAINTAINED NOVATED LEASE?

In short, a fully maintained novated lease is where an employee leases a car, and the loan is paid by the employer via the employee’s pre-tax wage. For this reason, a fully maintained novated lease can be a great option for employees needing a car because they are paying less income tax than if they bought the car via hire purchase. Maintenance, fuel, insurance and all other running expenses are paid out of the lease pre-tax.

In addition, a fully maintained novated lease is portable, meaning that if the employee switches companies, the car and lease can be transferred to the new company.

For the employer, a fully maintained novated lease can be a cost efficient way of using company vehicles; especially compared to running a company fleet. Having everything included in the lease keeps your staff happy, but means you have no budgeting surprises along the way.

THE BENEFITS OF A FULLY MAINTAINED NOVATED LEASE

 Why would this type of loan suit you? Have a look at the features we can offer:

For employers:

  • Portable loans mean no risk when your employee leaves the company
  • Potential savings on tax including Pay-roll tax and Workcover premiums
  • Salary packaging can save money. Employees still have access to flexible remuneration packages
  • Can provide a cost effective solution to running a fleet of company vehicles
  • Potential savings on GST on the price of the vehicle

For employees:

  • Income tax savings
  • Potential savings on GST on the price of the vehicle
  • Flexibility on the choice of vehicle, better buying power
  • Portable loans mean you can keep the same car regardless of your employees
  • Access to low interest rates with strong financial backing from your employer

WE’LL HELP YOU DECIDE ON THE TYPE OF LOAN TO SUIT YOUR CIRCUMSTANCES

Contact our team at Pacific Auto Finance. We have years of experience in determining suitability for fully maintained novated leases and will discuss with you your options for finding a solution for your needs. Call us today, or fill in an online enquiry form and we will get back to you. A five minute, obligation free phone call could end up saving you a lot of money.