Providing work cars for employees is not always possible and could cost your business a small fortune. Offering novated leasing as a staff benefit is way that you can include cars as an option for your employees.
A novated lease benefits both employers and employees. It is a hassle-free, affordable way to own a car.
Partnering with PAR Leasing in providing this benefit to your employees will benefit both your employees and you.
Convenience for both Employers and Employees
Arranging a PAR Leasing Novated Lease is simple, and is easy for both you and your employee. PAR Leasing will offer support, information and expertise to your employees to assist them in making the best decision for them.
At no time will PAR Leasing provide financial advice, and always recommend that employees seek independent financial advice before entering into a novated lease arrangement.
- Employees choose the vehicle that they would like to lease, PAR Leasing consultants can assist the employee with narrowing down vehicle choices. The employee can seek their own pricing or have PAR Leasing do all the leg work for them and leverage our relationships to secure them the best price available on the vehicle.
- Employees then estimate the number of kilometers they expect to travel per year in the vehicle. This will help them and the consultant with recommendations on the lease type that would be most beneficial to them.
- PAR Leasing’s consultants can then prepare a quotation and salary packaging estimate for the employee based on their current salary.
- This quotation will show all costs associated with the lease and what obligations the employee is responsible for. It will also include an impact assessment on their take home salary showing the benefits of salary packaging, and the potential savings they could experience.
- This can then be provided to the employee’s financial advisor for assessment.
If the employee wishes to proceed with the lease then they will need to do the following:
- Return the signed quotation – signed by both employee and employer
- Provide a clear copy of their driver’s license
- A current copy of their payslip
- A completed finance application
- A completed privacy declaration
- PAR Leasing will then complete a finance application and credit check on the employee
- Once credit has been approved, the vehicle will be ordered with the dealer.
- The employee will receive the novated contracts which will need to be completed and signed by both the employee and employer and returned to PAR Leasing.
- Employee takes delivery of their new car.
- Employer starts taking salary deductions from the employee pay.
Benefits of Novated Leases for Employers
The benefits to the employer include:
- Novated leasing is a neutral cost to employers, all costs are borne by the employee and are included in the lease payments and salary deductions taken by the employer.
- Outsource administration, PAR Leasing will handle all employee queries and deal with any issues that may arise, meaning you can focus on your business.
- No risk, the employer has no risk on the lease, if anything happens the financial risk sits with the employee. You as the employer wont be stuck with the car if the employee leaves employment.
- Reduction in payroll tax and employee on costs.
- Improved employee retention and attraction by providing Novated Leasing as a benefit.
Benefits of Novated Leases for Employees
The benefits for the employee include:
- Tax effective way of leasing and running a vehicle
- GST Free running costs.
- Discounts available on services and purchase from partnering with PAR Leasing.
- No GST on the purchase on the vehicle.
- Build equity in the vehicle from pre tax salary.
- Potential to make a tax free profit on the sale of the lease at the end of the term.
- Choice of any passenger vehicle.
- Locked interest rate for the term of the lease.
- Set monthly costs, allow for smooth budgeting by the employee.
Are you in the right relationship for your novated leases?
Partnering with the right Lease Provider is important, you want to make sure that they are looking out for both you and your employees.
PAR Leasing recommend that you check to ensure you and your employee are receiving the following things:
- Service for both you and your employees
- Experience and knowledge
- Pass on all savings and discounts to you and your employees
- They provide your employees with information and support to make an informed decision
- Always recommend getting external financial advice
PAR Leasing provide all this along with personalised individual service that is tailored to your employees and your business.
PAR Leasing look to create long term relationships with its customers and does this through positive and open communication paired with the best deals and product in the market.
Contact us today to discuss our tailored leasing solutions.