Financial Services

Novated Leases and Hire Purchases

A novated lease has become an increasingly popular form of vehicle financing over recent years. A novated lease combines many features of more traditional forms of vehicle finance to deliver some attractive benefits for both employers and employees.

A novated Lease is an agreement between a business, employees and the financier, where the obligation to meet the repayments under the finance lease is with the employer.

With a novated lease agreement, the employee own the vehicle and has the right to take it with them should you change jobs and, structured correctly, there may be tax advantages with your remuneration package.

As with other leasing structures, repayments with a novated lease are flexible and amounts depend on the term, interest rate, amount borrowed and the residual payment.