Company Car/Car Allowance/Novated Lease

[belinda]

I have been asked to look into Company cars. We have a few options at our company, howevere nothing has been documented and $$ have not be specifically allocated.

I am wanting to put together a policy, detailing the options for company cars. ie. you are provided with a car allowance of $$, which can be used for ????? or you are provided with a full maintained car, or pool car. etc.

Does anyone have any suggestions or examples that they can provide me with what their company offers.

Belinda

[Tasman McManis]

Belinda,

I have not looked at this site for a while and I noticed that you posted this question some time ago. So hopefully this reply is not too late. As part of changing car plans etc, I like to incorporate this in the process of introducing a Total Fixed Remuneration arrangement. Then all the value of cars etc is rolled up with super into the one salary figure. Unless tool of trade cars are absolutely necessary, I usually like to remove all company cars if possible too. Then employees have the flexibility to purchase through a novated lease or through their own arrangements what ever car they like. Your profile indicates that you are in manufacturing so some of these approaches may be seen as radical in your industry. What they do is remove most of the noise and constant HR effort in updating company car lists and dealing with people whinging about their car. It also means that people look after their own car much better than the company car so insurance drops as well. Putting these changes in place takes planning but it is worth it in the end.
Regards Tas

[Spanbb01]

Belinda & Tasman

Thought this blog post 2 Simple Reasons Employers Should Start a Novated Lease Program might help you and anyone else out there decide whether Novated Leasing is a good idea compared to company cars.

Cheers,
Bowan
.

[MyCarBudget]

The options available to you include Operating Leases (and the variations that go with thiese arrangements) and then Novated Leasing. Operating Leases gives you and staff access to vehicles that the company doesn't need to purchase outright and worry about their value later. The lease company takes on all of that risk. Terms are usually 3 years.

Novated gives total control back to the individual. Each individual needs to review the option based on their own financial circumstances. The benefit for the company is that their is no risk nor cost to them, it sits back with the employee and the lease provider.