Novated leasing car options

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.

The finance company technically owns the car on paper, but it’s registered in your name and you use it like it’s yours, whether using it for school runs, road trips or all of the above. This is because a novated lease is a three-way set-up between yourself, your employer and a finance company. At the end of the lease, you choose whether to buy it, refinance it or trade up to something new.

There’s no strict income rule. Lenders simply look at whether you can comfortably afford the repayments based on your earnings, living costs and debts. Plenty of people on salaries around $50,000 and above get approved, but it really comes down to your overall financial picture, not just your pay number.

Most people choose between one and five years. Shorter leases cost more each pay cycle but finish faster, while longer leases spread costs out and keep things affordable. If you’re not sure, a novated lease calculator can help you see which term fits your budget best.

Cars from around $5,000 to well over $100,000 can be leased, but what you qualify for depends on your borrowing capacity. If the repayments comfortably fit your budget, you’re usually in the clear. EVs, hybrids, utes and family cars all qualify, so there’s plenty of choice if you’re looking for something specific.

Yes! Used cars have become a super popular option, especially when new-car wait times are long. Buying a used car from a dealership through a novated lease can also save you GST on the purchase price, which is a nice bonus and helps bring down overall costs.

Generally, yes. You won’t pay GST on the purchase price of a new car (up to the luxury car limit) and any running costs included in your lease, like servicing, tyres, rego or insurance, are normally GST-free too. It keeps your day-to-day expenses more predictable and cost-effective.

A quick chat with HR or payroll is the easiest way. Some companies promote it openly, while others just set it up when someone asks. A novated lease provider (like Leaselab!) can also check for you and help your employer get the process started if they’re new to it.

You can, as long as you’re paying yourself a salary through a Pty Ltd business and technically count as an employee. Sole traders aren’t eligible because they don’t receive wages. If you’re thinking about restructuring for this reason, it’s worth getting advice before making the switch.