Can I refinance the residual value of my novated lease?
Yes, some finance providers offer residual refinance options, allowing you to continue paying off the residual over time instead of a lump sum.
read more
What happens if my car is worth less than the residual value?
You would need to pay the difference out-of-pocket or re-finance it if you wish to buy the car. This is why setting a realistic residual value from the beginning is essential.
Can I trade in my novated lease vehicle at the end of the lease?
Yes, you can trade in your vehicle any time prior to the end of your lease and payout the lease.
Can an employer claim GST on employee novated leases?
Employers may be eligible to claim input tax credits (GST) on the lease payments if the vehicle is leased in their business name. Consult a tax advisor for specifics.
Does offering novated leasing cost the employer money?
Typically, there are no direct costs to the employer beyond administration. However, it can be an attractive benefit to offer employees and support staff retention.
What are the employer’s responsibilities in a novated lease?
An employer’s responsibilities in a novated lease include deducting lease payments from the employee’s salary, remitting them to the finance provider, managing administrative and FBT obligations, and ceasing involvement if the employee leaves the company.