Novated Lease
Novated Lease Benefits With Toyota Fleet Management
A novated lease enables the employee, the employer, and Toyota Fleet Management to enter into a finance or operating lease agreement.
As the name suggests, the employees' lease payments are transferred or 'novated' to the employer, who makes these payments to Toyota Fleet Management for the term of the lease. If the employee leaves their employment, the novation agreement ceases and all financial liability for the lease reverts to the employee.
Employee benefits include:
- Vehicle choice flexibility
- Discounted vehicle prices due to Toyota Fleet Management's buying power
- Financing exclusive of GST
- Vehicle finance and operating costs paid with pre-tax dollars
- Repairs, maintenance and tyres all at discounted fleet rates
- Fixed payments
- Fuel and comprehensive insurance can be included
- Potential tax free equity in vehicle
Employer benefits include:
- Liability and asset removed from balance sheet (excluding luxury vehicles)
- More attractive salary packaging; can assist with recruitment
- Reduced administration with a single invoice for all novated vehicles
- Reduced payroll tax and Work Cover expenses (subject to State laws)
- Employer is not responsible for vehicle sale or disposal at lease end
- The vehicle will remain with the employee in the event they change jobs