Equipment Novated Lease
A novated lease has become an increasingly popular form of equipment financing over recent years. A novated lease combines many features of more traditional forms of equipment finance to deliver some attractive benefits for both employers and employees.
A Novated Lease will suit any employee who wants to include an equipment as part of their salary package, so long as their employer offers salary packaging as an option for employees.
How It Works
A novated Lease is an agreement between your employer, yourself (the employee) and the financier, where the obligation to meet the repayments under the finance lease is with the employer.
Under this arrangement, the employer pays the monthly lease rentals on behalf of the employee, and provides the vehicle for the employee to use as part of their salary packaging arrangement.
If employment ceases for any reason, or the lease agreement is finalised, the Novation ceases and the obligations assumed by the employer revert back to the employee.
Related Articles:
- Equipment Finance Lease
- Equipment Novated Lease
- Equipment Operating Lease
- Equipment Commercial Hire Purchase
- Equipment Chattel Mortgage
- Equipment Rental
