Novated leases are one of the most popular ways of ‘owning’ a car. They allow us to drive a safe, cool, new car without having to fork out the massive upfront cost for something that’s, in most cases, a depreciating asset. They also make life easy when we want to upgrade to a new model, allowing us to simply switch models and keep paying the lease. 

One of the main things about novated leases is the fact that you need to be employed in order to enter one. Which brings us to employers… can any company provide novated leases? Or do you need to have a twenty-story headquarters in Silicon Valley and be one of those CEOs who wears an earpiece and gets around the office on a hoverboard?

Short answer: no, you don’t. And please don’t let that idea go to your head.

Any employer can provide novated leases

There are plenty of benefits that come with offering novated leases to employees. Here are just a few:

  • Zero cost for the employer
    You can offer novated leases to your staff and it won’t cost you a cent. This means, your employees reap the benefit of reducing their payable tax, thanks to you, and drive around in a sweet set of wheels, thanks to you, and it costs you nothing!
  • Zero risk for the employer
    There’s no risk as an employer to offer novated leases. The repayments come out of your employee’s pre-tax wages, so they’re the ones paying it off. If they can’t make the repayments anymore, they’re the ones who are liable for it: it has nothing to do with you. If they change jobs or you need to let them go, that’s totally fine too – the novated lease goes with them.
  • Makes your business more attractive to employees
    Employers who offer novated leases are incredibly attractive, making your business a place where people want to work. Novated leases are particularly sought-after by Millennials and Gen-Z employees who seek to avoid the huge upfront cost of buying a car.
  • Creates a sense of gratitude and workplace satisfaction
    Your employees are happy, you’re happy – everybody’s happy when you offer novated leases!

Benefits of offering novated leases

We can’t predict the future and there’s been a fair bit of speculation around when the car market will settle and return to normal. But in terms of how long the used car boom in Australia is going to last for, the answer is: for as long as there’s a components shortage, and then a little while longer after that. Many experts are saying that the used car boom will last until mid-2022; some are less optimistic, saying the beginning of 2023.

If you’re looking to offer the best novated lease packages for your employees, talk to the team at Fingo. They’re Australia’s car finance experts, helping you navigate the sea of deals and offers out there and pointing you in the right direction. Fingo work for you so that all parties are happy as Larry when you sign the novated lease.

Fingo Finance