For employees who have the option of receiving a car as part of their salary package. The employer pays all rental payments to the finance company and the employee enjoys full use of the motor vehicle.
How it works
The employee chooses a car and leases it from the finance company.
The employee then novates the lease to their employer, who assumes all the employee’s rights and obligations under the lease, including responsibility of meeting the lease rentals.
The contract is in the name of the employee who remains the registered owner throughout the lease and keeps effective control of the vehicle at all times.
If the employee leaves the company, the vehicle remains with the employee. In this situation generally the employee takes over the payments or gets another employer to make the payments. This means, the original employer is not left with an unwanted car and the employee keeps the vehicle.
Benefits for employees
- Use of the vehicle without having to budget for the repayments.
- Option to buy the vehicle without a deposit or the hassle of being reimbursed from your employer.
- Complete choice about what car you buy and where you buy it from.
- Retain the car even if changing employment.
Benefits for employers
- If the employee leaves, the company is not left with an unwanted car.
- The employer can provide the employee with a car without having to reflect it on its balance sheet.
The rentals are fixed throughout the life of the loan.
One to five years
$10,000 and upwards.
Monthly, quarterly, semi-annually, annually, seasonally or irregularly.
Direct debit and periodical payment from a nominated bank account, BPAY® and cash/cheque deposits via a cash booklet.