Novated lease is supported by the majority of the people as it provides them their vehicles without having to do any part time jobs and putting their properties as a guarantee to get loans as the company in which you are working takes your guarantee. The facility of Novated lease is present in some good companies only where the company takes responsibility and guarantee for their employee in front of the company from which the employee is taking the vehicle on lease. The installments of the vehicle purchase are deducted from the payment of the employee and once the installments are fully paid the employee becomes the owner of the vehicle.
People contradict that in this way, the vehicle belongs to the company until the installments are not completely paid and the vehicle is not owned by the person really for a very long time. But the claim is just pointless as there are much larger benefits for the employee in the offer as the vehicle comes in the employee’s possession sooner than he can even imagine without having to make arrangements for the guarantee to get a vehicle on installment.
Although the company doesn’t offer the Novated lease to its customers just for their sake but there are also benefits for the company too as their employee becomes owner of a vehicle and he won’t be in need of using the company car in the future saving the fuel and expenses on company vehicles along with the company wouldn’t be responsible of the expenses of fuel and service of the vehicle as it is owned by the employee not by the company.
The employee can select packages of the Novated lease which differ on the bases of the installments which are deducted from the payment of the employee. The variation in the deductions may also include the expenses of the fuel and sometimes also for its services. It also depends on the employee that whether he wants to insure his vehicle and its installments are also deducted from his payment. The Novated lease facilitates both the employee and the employer along with the company from where the vehicle is purchased.