WHAT IS A NOVATED LEASE?
A ‘novated lease’ is a three-way finance agreement between an employer, an employee and the vehicle financier. A ‘novated lease’ allows an employee to salary-sacrifice towards the cost of their car, while thier employer takes over the lease obligations. Jim’s provides the vehicle and manages the vehicle’s running costs using the employee’s pre-tax salary’
The specific running costs to be included in the ‘novated lease,’ such as fuel or maintenance, are worked out between Jim’s Car Loans and the employee.
WHY DO I WANT A NOVATED LEASE?
Jim’s pays all the costs included in the lease for you which means you’re never out of pocket. A ‘novated lease’ combines all of a vehicle’s running costs into one convenient payment, allowing both the driver and the employer to keep tabs on all associated costs.
WHO WOULD BENEFIT FROM A NOVATED LEASE?
A ‘novated lease’ is perfect for anyone with a regular income that has the option to salary package a vehicle, or for an employer who offers vehicles as part of a salary package.
...perfect for anyone with a regular income that has the option to salary package a vehicle, or for an employer who offers vehicles as part of a salary package.
Any more questions about Novated Leasing? Contact us here.
BENEFITS TO EMPLOYEES
- Making vehicle payments from your pre-tax salary means less income-tax and more money in your pocket
- Jim’s takes care of all the vehicle payments
- GST savings to be made
- You get to choose a vehicle that suits your style and budget
- If you change jobs, you get to take the car with you
- Simple online reporting
BENEFITS TO EMPLOYERS
- A ‘novated lease’ is an effective way to retain employees
- Jim’s takes care of all the vehicle payments and manages the vehicle
- A ‘novated lease’ allows you to offer a vehicle as part of a salary package
- The employee is responsible for the vehicle’s upkeep, leaving you free to concentrate on your business
- Totally outsourced service. Jim’s takes care of all the details