What is a Novated Lease and how does it differ from a regular finance lease?
A novated lease is a regular finance lease with a deed of novation attached. This deed states that while novated, all rights and obligations under the lease will transfer to the employer with the exception of the residual which remains the employee’s cost when the lease expires. If employment ceases the deed of novation is no longer valid, hence the lease becomes a regular finance lease with all rights and obligations reverting back to the employee.
