Novated Lease Benefits With Toyota Fleet Management
A novated lease enables the employee, the employer, and Toyota Fleet Management to enter into a finance or operating lease agreement.
As the name suggests, the employees' lease payments are transferred or 'novated' to the employer, who makes these payments to Toyota Fleet Management for the term of the lease.
If the employee leaves their employment, the novation agreement ceases and all financial liability for the lease reverts to the employee.
Employee benefits include:
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Vehicle choice flexibility
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Discounted vehicle prices due to Toyota Fleet Management's buying power
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Financing exclusive of GST
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Vehicle finance and operating costs paid with pre-tax dollars
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Repairs, maintenance and tyres all at discounted fleet rates
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Fixed payments
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Fuel and comprehensive insurance can be included
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Potential tax free equity in vehicle
Operating Lease Available With Toyota Fleet Management
An operating lease allows a vehicle to be leased over a fixed term, with defined kilometre usage. At the end of the term the vehicle is handed back with no residual value liability.
Toyota Fleet Management assumes responsibility for vehicle acquisition, disposal and risk of ownership under an operating lease. Fleet managers also have the option of including additional services as part of the monthly payment.
The benefits of this type of rental finance include:
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Leveraging Toyota Fleet Management's vehicle acquisition power to select from all makes and models Australia-wide
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Amount financed is GST exclusive
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A consolidated monthly invoice allows for easy budgeting
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Lease rentals, normally fully tax deductible (except Luxury Vehicles) are expensed at the same rate in the profit and loss account and cash flows
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No liability as asset is not shown on the balance sheet
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Maintenance, tyres, registration and other running costs can be built into the rental to provide customers with a known fixed expense for varied terms and kilometres.
