Volkswagen Finance- Volkswagen Novated Lease

Essentials

If you’re an employee seeking tax benefits, a Novated Lease may be a smart way to finance your vehicle. And if you’re an employer, a Novated lease can be a simple, cost-effective way to add value to your employees’ remuneration packages.* Put simply, it’s an agreement between the employee, employer and Volkswagen Finance that allows employees to purchase a new Volkswagen from their pre-tax salary. Running costs and Fringe Benefits Tax can also be paid pre-tax (subject to your employers policy and supplier agreements). Registration, insurance and on-road costs can be included as part of the Novated Lease package.

A Novated Lease offers a number of benefits including:

Fixed repayments and interest rates
Your choice of term from between one to five years
Flexibility with your choice of vehicle
The opportunity to lease more than one vehicle**
Possible tax benefits even though your vehicle is used for private purposes*

A Novated Lease agreement specifies that the employee assumes the responsibility for lease payments from their pre-tax salary. These payments are made by the employer for the period of the lease. In the event that the employee leaves his or her employment, the obligation to make the lease payments passes back to the employee. Naturally, you should consult your accountant for more detailed tax advice. *

*Customers should consult their accountant for specific advice. **Subject to normal lending criteria