Novated Lease - Benefits for employees and employers

Esanda Finance's Novated Lease product is a three-way agreement between Esanda Finance, you and your employer. As the employee, you have responsibility for the vehicle and your employer arranges for the monthly payments to be made out of your pre-tax income.

Features

Terms range from 12 to 60 months

Residuals are set according to the Australian Tax Office life and depreciation guidelines.

Your rentals and the interest rate are fixed for the term of the lease

Pay by Direct Debit or BPAY

Other costs associated with the purchase can be financed on the contract (such as Comprehensive Insurance, registration and on-road costs)

Benefits to the employee

Payments can be structured to suit your individual needs, taking into account your budget and cashflow requirements

With fixed rentals, you are protected against interest rate fluctuations

Tax effective: payments are made from pre-tax earnings

Can be portable should you change employers

Benefits to the employer

If the employee leaves the company, the car is no longer your responsibility

Payments can be made via Direct Debit or BPAY

Lease Rentals are tax deductable

Easy administration: your responsibility only extends to making monthly payments

GST and Stamp Duty
Novated Lease rentals are subject to GST, as is the Residual Value. Rentals are also subject to Stamp Duty and (if applicable) Financial Institutions Duty.