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Why Novated Car Leasing?
Novated car leasing at Laurentide provides great benefits for both the employees and employer
Employee Benefits:
- Novated Car Leasing allows the employee the choice of both new and used vehicles and indeed the ability to utilise an existing vehicle.
- A Novated Car Lease allows portability of your vehicle as your Novated Lease agreement can be transferred on change of employment.
- As the employee you receive greater after tax income compared with a car allowance due partly to your employer being able to claim a deduction for the GST component of the Novated Lease Finance agreement
- Novated Car Leasing means the employee has effective control of the vehicle and the choice of vehicle that suits them not the employer.
- Change over of vehicle equity or indeed sale of vehicle equity can be retained by employee with a Novated Car Lease.
- Novated Lease Finance allows an employee the ability to salary sacrifice two or more vehicles, for example the wife’s car. This means even more after tax benefits
- Often Novated Lease Finance means that fleet discounts and benefits normally only available to an employer will now pass to the employee.
Employer Benefits:
- Novated Car Leasing allows off balance sheet recording of motor vehicle liabilities and assets improving Balance Sheet equity.
- Novated Lease Finance does not affect an employer company’s borrowing capacity as the ultimate liability attached to the Novated Lease Finance lie’s with the employee.
- A Novated Car Lease means the employer has no liability for the vehicle on termination of employment and therefore no unwanted vehicle should an employee not be replaced.
- Novated Car Leasing saves employment on-costs.
- Novated Lease Vehicle programs generally mean that the presentation of the company motor vehicle fleet is upgraded as employees are more likely to take better care of their own vehicle.
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