The employee chooses the car they want and the business pays for it from their pre-tax salary. If the employee leaves they keep the car and make the repayments or arrange for their new employer to take over the lease. 

Benefits to Business

• No risk of being left with unwanted company vehicles - if the employee leaves they take the vehicle and the repayments with them. 
• Tax benefits - tax benefits may apply for the customer's business 
• There are no ongoing monthly fees or charges 

Benefits to employee

• Increase effective value of a salary package - lease payments come from pre-tax salary 
• Unlimited private use of the vehicle 
• Flexibility - complete choice of vehicle and where to purchase it 
• Never left without a vehicle - retain the car even if changing jobs 
• The employee has effective control of the vehicle at all times 
• The employer will make the repayments on behalf of the employee, removing the need to budget for payments  

At a glance