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Novated Leasing

Fleet or individual Novated Leasing comprises a lease between Alliance Fleet Services and the employee, and a novation agreement/sub-lease between the employer, employee and Alliance Fleet Services. It allows an employer to provide executives with the benefit of a salary-packaged vehicle of their choice without the employer taking the risks of ownership.

Under this agreement the employee is the lessee and is responsible for the vehicle they select for the duration of the lease. The employer, on the other hand, is the sub-lessee and is responsible for meeting the leasing costs for the lease term or for the term of employment (whichever is the shorter).

To ensure peace of mind, the employee may elect to take “gap” cover, which is offered in conjunction with Alliance Fleet’s comprehensive insurance package. This is designed to provide protection against the costs of lease payout required as a result of involuntary termination of their employment.