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What is a novated lease?
A novated car lease is a three way agreement between the employer,
the employee and the finance company. The basic principles of a novated
car lease are:
- The employee leases the vehicle directly through LeasePLUS using
a standard finance lease agreement.
- The employee, employer, and the finance company enter into an
agreement that transfers the employee’s obligation to pay the
lease costs, insurance, registration, servicing, tyres, and other
vehicle costs to the employer.
- The employee drives the car for business and personal use, and
pays for all costs associated with operating the car on their
LeasePLUS expense card.
- The employer deducts a pre-determined amount from the employee’s
pre-tax income on each pay day. This amount is sent to LeasePLUS
to meet the lease and operating costs associated with the vehicle.
- If the employee ceases employment with the current employer,
the novated car lease can be transferred to the new employer and
re-established to continue until completion of the lease.
- Novated car leasing has Australian Tax Office approval.
There are a significant number of benefits to using a novated car lease.
These include:
- Flexibility in the choice of vehicle.
- Select your own dealership.
- Full choice of colour, trim and accessories.
- Choose your own insurance company.
- Use your favourite servicing centre.
- Cost savings on the purchase of a vehicle.
- No deposit required.
- No GST payable.
- Lower purchase price due to fleet discounts.
- Lower servicing and operating costs due to fleet discounts.
- Reduced annual tax bill.
- All leasing and operating costs are paid with pre-tax income.
- Convenience associated with managing and maintaining the vehicle.
- Driver pays all operating costs with a LeasePLUS expense card.
- All lease and other operating expenses are paid by LeasePLUS.
Yes, novated car leasing is a flexible financial tool that can be used to purchase
almost any vehicle, and set up to suit a range of different financial situations.
- The vehicle can be new or second hand (age limit does apply).
- More than one vehicle can be packaged at a time (depending on employer policy).
- The lease term is fully flexible from one to five years.
- A currently owned vehicle can also be converted to a novated car lease or
an associated lease.
LeasePLUS is a company dedicated to ensuring that its customers gain the greatest
possible benefit from their novated lease. The key elements of our approach include:
- Sourcing vehicles from the widest network of dealerships in the country.
- Using competition amongst dealerships and financiers to negotiate the
best possible price on our customer’s behalf.
- A focus on customer care unlike any of our competitors in the market.
- Industry-leading technology that has been developed to ensure quick
responses to customer enquiries and the fastest possible processing times
for applications.
LeasePLUS exists to ensure value and convenience for customers purchasing a new
vehicle, which includes:
- Fully informed decision-making through unlimited no-obligation quotes.
- Taking advantage of our buying power.
- Complete flexibility in choice of vehicle.
- The ability to consolidate extras such as insurance, car enhancement,
and roadside assistance into the monthly payment.
- Simple vehicle management and maintenance using a single card.
- Automatic monthly payments managed with employer.
- 24 hour/365 day on-call customer support.
- Low administrative load for employers.
- Full and accurate tracking and reporting for drivers.