A novated lease is a type of ‘salary sacrificing’ that reduces your taxable income so you pay less later on. This happens because your lease payments are made from your pre-tax salary. You can also include your car’s running costs like fuel, servicing, roadside assistance and more into this same payment which can drive down your tax bill even further.

A novated lease makes car payments simple by bundling both the lease and running costs into one easy payment that comes out of your salary before tax. In contrast, a car loan requires you to borrow money, pay interest, and cover your car expenses using your post-tax income. 

Another key difference is ownership – while you don’t own the car outright until you pay the residual in a novated lease. With a car loan, the car is yours as soon as the final payment is made.  

Pick your perfect car and get an instant online quote. If you have any questions, we're here to help – just ask! Next, check in with your employer to see if they offer novated leasing (and if they don’t, maybe ask if they’d consider it). 

Once you're happy with your quote, we’ll walk you through the finance pre-approval process. We work quickly to get you approved – often in just a few hours, not days or weeks.

Not technically. If you want to own the car at the end of your novated lease, you’ll need to pay out the residual (that’s the remaining balance on the lease). In most cases, the residual is less than what your car’s worth on the market – so if you’d rather sell it, you can and keep any profit tax-free.