A flexible solution with advantages for both the employee and employer.
Purpose
A novated lease is ideal for employees who have the option of receiving a car as part of their salary package. The employer pays all rental payments to Esanda and the employee enjoys full use of the motor vehicle.
How it Works
The employee chooses a car and leases it from Esanda.
The employee then novates the lease to their employer, who assumes all the employee’s rights and obligations under the lease, including responsibility of meeting the lease rentals.
The contract is in the name of the employee who remains the registered owner throughout the lease and keeps effective control of the vehicle at all times.
If the employee leaves the company, the vehicle remains with the employee. In this situation, generally the employee takes over the payments or gets another employer to make the payments. This means, the original employer is not left with an unwanted car and the employee keeps the vehicle.
Product Benefits
Benefits for employees
Use of a vehicle without having to budget for repayments.
Choice about what car you buy and where you buy it from.
Retain the car if you change employment.
Benefits for employers
If the employee leaves, the company is not left with an unwanted car.
The employer can provide the employee with a car without having to reflect it on its balance sheet.
Interest rates
The repayments are fixed throughout the life of the loan.
