A Novated Car Lease is a three-way arrangement between an employee, employer and the lender. All parties should understand the implications and considerations associated when employee or employee has a less-than-perfect credit profile.
Where an employee has poor credit, they can benefit when their employer with good credit agrees to set-up salary sacrificing for a motor vehicle. They can work towards owning a car by sacrificing part of their salary rather than having to apply for their own bad credit car loan.
Where the employer has credit issues and the employee good credit, a number of considerations arise. The best interest rate and financing terms may not be offered. Making repayments higher and a greater amount of salary needing to be sacrificed by the employee. Higher rates result in higher total interest payable over the term of the finance, making the vehicle more costly to purchase.
If the lender does not approve the full purchase price as the leasing figure for a bad credit applicant, the employee and employer may need to work out arrangements for making any downpayment. If the employer with bad credit defaults on the payment, a complicated scenario may arise if the vehicle is repossessed by the lender.
Where any offer we source does not present a viable, affordable option for either party, we may assist the employee with personal car financing. For a quote on the best rates and terms for flexible Novated Leasing for bad credit applicants, contact us via our online form or by phone.
- Get best bad credit leasing rates with expert brokers.
- Access to flexible solutions for employees and employers.
- Specialists to negotiate rates, terms and leasing conditions.