PRODUCTS/SERVICES Employer Benefits
- No Unwanted Vehicles
When the employee leaves (for whatever reason) or when the lease is at end, the vehicle also leaves the employer. There is no need to try to reallocate excess vehicles. There are no early termination penalties incurred by the company. The responsibility for the vehicle reverts entirely to the employee.
- Employee Goodwill
By allowing your employees greater flexibility in their choice of vehicle, and by outlining the savings a NovaLease™ will provide employees through salary packaging, substantial employee goodwill can be generated.
- Tax Deductibility
During the course of the NovaLease™ the monthly payment obligations for the Leased vehicles are transferred to the Employer, which in most cases means a direct expense deduction can be made on each lease instalment paid.
- Reduced Administration
sgfleet Salary Packaging takes the bulk of the administration and paperwork 'off site', handles all employee enquiries and provides a tidy interface with the employers nominated officer. All enquiries are handled professionally and promptly by experienced sgfleet account managers who have a thorough knowledge of the employer's motor vehicle policy.
- Off Balance Sheet
The nature of a correctly structured NovaLease™ agreement is such that the payment liability of the employer is limited to rental payments only during the employment period. Accordingly, the ultimate responsibility for the Lease is held by the Employee. This means that from an accounting perspective the usual requirement for 'on' Balance Sheet reporting is not in place as there is no build up of equity in the Vehicle nor is there an ongoing liability directly attributable to the employer.
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