EquiLease

Novated Lease Agreement

Different types of finance

Residual payments

Get pre-approval now

EquiLease

Feeling left out in the cold? Equilease allows you to salary package you existing vehicle, through a revolutionary sale and leaseback process, where there is no limit on the age of the vehicle and better still, there is no finance application – meaning that all applications are successful.

So for that much loved older car that you want to salary package but could not or for those who may not want a new car just yet, but want the benefits of a novated lease, there is Equilease.

What is EquiLease?

Equilease allows you to pay for the running costs of your existing vehicle by using a combination of pre-tax and post-tax dollars. Because the car is already owned, the vehicle is worth less and hence more of the running costs are pre-tax. Running costs are paid using a fleet card (service, repairs, fuel) There is no age restriction on the vehicle, and your credit history is not required.

With EquiLease, you refinance your vehicle, but retain equity in the lease, hence the name EquiLease. The lease is provided through Lend@bility who will pay you the sale value of your car (net of the residual, incl GST) over the term of the contract, which can be 3 to 5 years.

  • You can pay for the costs of running your car pre-tax.
  • At the end of the term, you can take your car back and offset the residual you owe against the residual value Lend@bility owe you. It couldn’t be simpler!

Novated Lease Agreement

A novated lease agreement is a finance lease with one crucial difference. Normally a loan for a car will be between you and the financier. In order to get the tax deductibility for the lease, there are some terms of the lease that you assign (“novate”) to your employer. This effectively makes your personal car a company car and becomes a benefit of employment, a Fringe Benefit.

Different types of finance

Novated LeaseSale and LeasebackEquileaseHire PurchaseChattel mortgageConsumer Loan
Who owns the carFinancier, until the last payment is madeFinancier, until the last payment is madeFinancier, until the last payment is madeFinancier, until the last payment is madeYou do, with the car as security to the financierYou do, with the car as security to the financier
Credit applicationYesYesNo, do not require a clear credit historyNooptionaloptional
Age of carNew or near newUp to 7 years at the end of the leaseNo age limitLess than 12 years at the end of the termLess than 12 years at the end of the termLess than 12 years at the end of the term
RepaymentsMonthly, in advance or arrearsMonthly, in advance or arrearsMonthly, in advance or arrearsMonthly, in advance or arrearsMonthly, in advance or arrearsMonthly, in advance or arrears
Term12 to 60 Months12 to 60 Months36 to 60 Months12 to 60 Months12 to 60 Months12 to 84 Months
Balloon or ResidualRequired as per ATO GuidelinesRequired as per ATO GuidelinesRequired as per ATO GuidelinesNoNoNo
Tax deductible for employeesYesYesYesPossible through operating cost and log bookPossible through operating cost and log bookPossible through operating cost and log book

Residual payments

When you salary package a car through a novated lease, the Australian Tax Office require that you need to have a residual value for the car, which is close to the market value at the end of the lease. This is because the car has a value in your hands which is not taxed at the end of the lease. If you were allowed to pay off the car in full, then when you sold the car the proceeds would not be taxed and the ATO would have given you a free benefit and that is why there is a residual value. That also means that if you make a profit (above the residual value) when you do sell the car, then that profit is not taxed.

Get Pre-Approval now

STEP 1

Calculate you expected savings and the price of the car you want

STEP 2

Submit your details for a Quote on how much you can save

STEP 3

To proceed, sign all the necessary agreements and we set up your lease

STEP 4

Receive your fleet card and use that to pay for your vehicles expenses