What is a Novated lease?
A Novated Lease is one of the easiest and most cost effective ways to buy and own a car. Simply it’s a three way agreement between the Employee, the Employer and the Financier. It allows an employer to provide executives and staff with the benefit of a salary-packaged vehicle of their choice without the employer taking the risks of ownership. Under this agreement the employee is the leasee and is responsible for the vehicle they select for the duration of the lease. The employer, on the other hand, is the sub-leasee and is responsible for meeting the leasing costs for the lease term or for the term of employment (whichever is the shorter).
For peace of mind, the employee may elect to take “gap” cover, which is offered in conjunction with Weblease’s comprehensive insurance package. This is designed to provide protection against the costs of lease payout required as a result of involuntary termination of their employment.