There are different types of novated leasing arrangements available, suited to the different needs of employees. Full or split full novation arrangements differ from partial novations.
Full and split full novation arrangements
A full novation arrangement gives lessees the responsibility for making lease payments on time and guaranteeing the full residual value of the novated lease vehicle at the end of the agreed term. Split full novation agreements differ as they do not require the lessee to guarantee the residual value of vehicles at the end of the lease, with this obligation being given to employers or financiers. However, the lessee is still responsible for making lease payments on time under a split full novation arrangement. The type of arrangement you choose will be determined by the deed of novation entered into with your employer and the lease provider.
Partial novation arrangements
There are two common types of partial novation arrangements, which may be arranged directly between the finance company and the employee, or between an employee and their employer, where the employee sub-leases the vehicle to their employer but forgoes the right to receive payments. The advantage of sub-leasing novated lease vehicles is that there is no arrangement with the finance company that can revoke the original lease.
Novated leasing in Geraldton
Fleet Network provides novated lease vehicles in Broome, Perth and other areas of WA, which can be arranged with employers or other financiers as full or split full novation arrangements. For more details about novated leasing and how to salary sacrifice, phone 08 6555 3854.