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Flexibility and Ownership Satisfaction
A novated lease allows Employees to have flexibility in their choice of
vehicle without additional cost to their Employer. In the event that an
Employee leaves the employer at any time, he or she retains the vehicle and may
write a new Novation Agreement with their next employer. (The original
agreement expires on employment termination regardless). With this arrangement
Employees have the satisfaction of being able to choose their own style of car
and be assured of retaining this vehicle regardless of future employment
decisions.
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Tax Advantages
For those employees who wish to acquire a vehicle as part of a vehicle
entitlement or those who are not currently entitled to a company vehicle, the
NovaLease™ system allows the employee to 'Salary Sacrifice' a portion of their
pre tax income to accommodate their requirements. Only the value of the vehicle
is subject to F.B.T. All maintenance, fuel, insurance and lease costs can be
taken out of pre tax income - regardless of the level of business use. Under
current tax laws this is the most cost effective method available today to
drive the car of your choice. In many situations a NovaLease™ can save an
Employee several thousand dollars each year when compared to running a vehicle
using after tax income.
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Pricing Advantages
Employees also have the opportunity of Leasing the Vehicle at a greatly reduced
price by taking advantage of the Fleet Discounts available to the Employer. By
ensuring that conservative Lease Terms and Residual Values are used and given
that the Vehicle has been sourced at a discounted price, Employees can be
assured that they are in the best available equity situation throughout the
Lease. This allows for greatest ease of vehicle disposal should this need
arise.
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Lease End Benefit
At the end of a novated lease the employee is in a position to offer to purchase
the vehicle at the specified residual value (finance lease only) and sell or
trade their vehicle at market value. Any profit from this transaction is to the
account of the Employee.