| Novated Lease | Finance Car Lease | Asset Leasing (Operating Lease) | |
| Asset Leasing (Operating Lease) | Employee, Employer, Finance Provider | Lessee (Individual/Business), Finance Provider | Lessee (Business), Lessor (Finance/Lease Company) |
| Primary Purpose | Personal use vehicle via salary packaging | Financing a vehicle for eventual ownership | Using business assets without ownership risk |
| Tax Treatment | Employee’s taxable income reduced, fringe benefits apply | Lease payments/deductions for business use | Lease (rental) payments often fully deductible for business use |
| Balance Sheet Impact | Not typically on employee’s balance sheet | Often recorded as an asset and liability for the business | Traditionally off-balance-sheet, but accounting standards may require recognition depending on lease terms |
| End-of-Term Options | Pay residual to own, re-lease, or return | Pay residual to own, trade-in, or return | Typically return the asset; no guarantee to buy |
| Who Bears Residual Risk | Employee if they choose to buy the car | Lessee typically assumes residual obligation if buying | Lessor bears the residual risk of the asset value |
| Flexibility | Tied to employment conditions | Moderate - structured financing terms | High - can upgrade or return assets easily |
| Best For | Employees looking for tax-efficient personal car leasing | Businesses/individuals financing a vehicle (with potential tax deductions) | Businesses needing use of assets without long-term ownership commitments |
Start your leasing journey with Stratton today and experience a seamless, rewarding process that puts the keys in your hands.
Stratton Finance can help guide you through these options, ensuring you make the best decision based on your needs and financial goals.
Due to the complex nature of leasing, it’s recommended to discuss options with your Stratton Broker. Call 1300 787 288 or Request a Call Back to speak with a leasing expert today!
