Save $1,000s with a novated lease
After receiving this, you'll see why more and more Australians are choosing to novate their next cars.
A novated lease is the most cost effective way to acquire and run a car.
It's a three way agreement between you, your employer and the novated lease company.
A novated lease is an automated discount on your new car - you do not have to pay the GST on the purchase price of the car, instantly saving you thousands of dollars.
You can also include all of the running costs of the car, including fuel, registration, maintenance and insurance. This further increases the huge savings you can make with a novated lease.
Just like other forms of car finance, there are typically a number of payments over a fixed term, with a residual (or balloon) payment due at the end of the lease. Each party to the agreement – employer, employee, and financier – will play a specific role.
Agrees to make regular, automated payroll deductions from the employee’s pre-tax salary. Our expert team helps set everything up.
Agrees to pre-tax salary deductions, in exchange for the use of the vehicle. The vehicle can be used for business or entirely for personal use.
Procures the vehicle, establishes the lease and manages the administrative, contractual and compliance aspects of the transaction.
This supersizes the already considerable savings.
The example shown is the cost of buying and running a Tesla Model 3 RWD over 5 years, compared to using traditional car finance and buying the car outright using cash. (The calculation is based on a driver in NSW with $120,000 pre-tax salary, 15,000km driven annually and car loan interest rate of 7.5% p.a.)
Thanks to the major fringe benefits tax incentive, EVs and PHEVs are in high demand. Here are some the most popular eligible vehicles below the luxury car tax threshold.
We also help customers every day with fantastic deals and major tax savings on Australia's best-selling non-EVs.
Learn more about how a novated lease works from start to finish. Our expert consultants can also answer any questions, so you can sign up with confidence.Find my best deal
Can I buy a used car with a novated lease?
Yes, right now, people more than ever are getting used cars through a novated lease instead of waiting for a new car deal. Buying a used car from a dealership will still see you save the GST on the purchase price.
Is there a minimum salary to get novated lease?
Novated leasing approval is dependent on your capacity as a borrower much like traditional finance. This means you need to illustrate your ability to meet regular repayments over the term of the lease.
For example, as it is entirely dependent on your personal living situation, expenses and dependents, you could gain approval for a $30,000 vehicle on a yearly salary of $45,000.
What's the minimum and maximum value of car I can get?
The amount you can borrow for a vehicle will vary depending on the lender. In general, the minimum novated lease amount is between $5,000 and $10,000, while higher amounts are subject entirely to the repayment capacity of the applicant.
Novated lease agreements may exceed $100,000 but very rarely exceed $150,000.
Get expert answers to more of the common questions in our novated lease explained guide.
How long will my novated lease be?
The term of the lease agreement is flexible, to suit the employee.
Generally, terms of one to five years are available under a novated lease. The shorter the term of the salary packaging agreement, the higher the residual.
What happens at the end of a novated lease?
You have a few options available at the end of your novated lease term:
What happens if I leave my current job during a novated lease?
If you leave your job during the term of your novated lease, or are fired from your position by the employer, you will still be responsible for making payments on the vehicle.
The lease will be de-novated, where the running costs are removed from the agreement and repayments work much the same way as a standard car loan.
Can I get a novated lease if I work for my own company
A novated lease can be suitable for a business owner who is also an employee of their own company, but it’s only an option if the business owner is receiving a salary from the company they own.
If you are planning to leave your current employment to start your own business, you can transfer your novated lease, provided you are paying yourself a salary.
If you are self-employed – i.e. are not paid a salary or paying yourself a salary through your own company – you will need to look at alternative forms of vehicle finance.
Need more information? Read our easy-to-understand novated lease guides.