This facility is similar to the Finance Lease but is aimed at the employee who has the option of receiving a car as part of their salary package. The employee can choose a vehicle of his / her choice which is then leased through the Financer under a Finance Lease. You then sub-lease the vehicle to your employer via an operating Lease. Your employer enters into an agreement (the novation), which makes it responsible for meeting the payments (whilst you remain in their employment). Structures are available as per the Finance Lease.
Employee - The employee gets to choose the vehicle / options that they desire without any capital outlay. If you leave your current employer, you are not left without a vehicle. You have the full use of the vehicle without having to budget for the payments.
Employer - There are numerous tax benefits for the Employer along with the fact that you are not left with an unwanted vehicle should your employee leave your services. The lending is not reflected in your balance sheet, which may be beneficial when you require further borrowings from you Bank or Finance Company.
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