While at first, it may seem like a novated car lease simply means sticking your neck out there for the sake of an employee, there are actually benefits to the employer as well. First of all, if you want to recruit the best staff for your company, offering a novated car lease could really be attractive to big-time talent. Also, instead of hiring out a company car that eventually gets thrashed, the employee is responsible for taking care of the car, because they consider it their own. This means you don’t have to constantly replace company cars or worry about maintenance. Finally, if the employee were to be fired, you would not be held liable for the rest of the payments on the car. Instead, the novated car lease reverts to the employee, who must then find a new way to take care of those payments – besides a pay packet from you, that is.
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