How Good are Your Novated Leases?For your employees
There is a good reason that the Australian Securities and Investments Commission (ASIC) is investigating add-on insurance products in 2017, because all too often they are junk products that you do not need to have inflating the cost of your novated lease.
The investigation is happening because of real concerns over the value of these products and for the commissions paid to those who sell them.
A report by the Consumer Action Law Centre (CALC) concluded that most of the products being sold to customers were “rubbish”.
The novated leasing industry is drawn in to the discussions because of allegations that these products are being bundled with some novated leases.
LeasePlan has never bundled these products with its novated leases.
We would strongly advise any individual entering in to a novated lease, as well as the employer providing access to novated leases as a staff benefit, to be very clear on everything that is or isn’t included in each lease agreement. If it’s not clear, that might be a warning.
We pride ourselves on decades of full transparency – no hidden surprises. It should be the minimum you demand in your novated lease.