What You Need To Know

Chapter 6

Steps to getting a car on a novated lease

The novated lease can seem a little complex and overwhelming at first, even if you’re excited about the broad range of advantages. But don’t stress as we’ve put together the simple steps to getting a novated lease car package, from research to renewal. And it might seem like a lot of steps, however each one is short and simple and, as you’ll see, has very little for you to do. We do most of the heavy lifting for you.

In Summary

Novated leasing simplifies car ownership through nine straightforward steps: calculate savings, get a personalised quote, obtain finance approval, reserve your vehicle, sign agreements, receive your welcome pack and drive off.
Your employer deducts lease payments and running costs from pre-tax salary, reducing taxable income while bundling insurance, fuel, servicing and registration into one predictable monthly payment. It delivers thousands in annual tax savings and you get to drive a car you love.

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Step 1: Calculate your savings and receive a quote

Once you’ve done your due diligence and decided that a novated lease is right for you, the first step is to get an obligation-free quote.

Simply calculate your savings using our novated lease calculator and punch in numbers based on your:

Your annual salary and tax bracket
The car you want (or car type if you haven't decided)
Your estimated annual driving distance
Your state (for registration costs)

What you'll need:

Basic salary information
Car make/model or price range
Estimated annual kilometres

Alternatively, you can also give us a call on 1300 888 594 and do it over the phone. It should only take 10-15 minutes, and we’ll guide you through the whole thing.

‍Can’t pick a car yet?

Not a problem. We offer independent advice on which vehicles deliver the best value for your situation, whether that's a fuel-efficient sedan, family SUV, work ute or FBT-exempt electric vehicle.

Explore popular novated lease options:

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Step 2: Review your quote

If you submit your quote online, someone will be in touch with you within one business day to discuss your quote request.

Our quotes are easy to understand and provide total transparency on how everything is calculated - so there’s no hidden costs for you to worry about.

What you'll receive:

Clear breakdown of monthly costs (pre-tax and post-tax)
Total tax savings projected over your lease term
Comparison showing novated lease vs. buying outright
Running costs estimate, including fuel, insurance and servicing
No hidden fees, complete transparency on all costs

Questions to ask at this stage:

What's included in my monthly payment?
How does the residual (balloon payment) work?
What happens if I change jobs?
Can I adjust my annual kilometre estimate if my driving changes?
What insurance level is included?

Talk to your employer at this point

At this point, it’s a good idea to chat with your employer and check if they offer novated leasing (and if not, check if they’d be willing to).

Our simple employer guide gives them everything they need, or if you’d prefer, you can suggest Leaselab to your employer, and we can share our knowledge and guide them through our simple setup process.

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Step 3: Obtain finance approval

If you’d like to go ahead with your quote, you’ll complete a finance pre-approval application and provide some key documents:

What are the documents you’ll typically need?

Photo ID (driver's license or passport)
Recent payslips (usually last 2-3)
Bank statements (last 3 months)
Employment letter or contract
Details of existing debts/loans

All of this is done with our easy-to-use digital online application form. We’ll then work with you and the financier to get you approved to purchase the vehicle.

How long does approval take?

We always aim to get the approval done as quickly as possible - and it’s usually a case of hours, rather than days or weeks.‍

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Step 4: Reserve and order your vehicle

Once your finance is approved, we’ll work with our dealer networks to find the car you’re after at the best possible price. We’ll get it ordered for you and lock in a pick-up date.

‍How we secure great deals:

Fleet pricing access: We negotiate prices significantly below RRP on new cars
Dealer relationships: We have established partnerships across Australia

GST savings: When buying through a dealer, you save the full GST amount (~10% of purchase price)

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Step 5: Signing your lease agreement

There’ll be some paperwork for you and your employer to sign in order to get things set up so that the financier gives the final green light to pay for your car.

For you, it’s fairly standard terms - most importantly the authorisation for your employer to make the car payments out of your salary as part of your salary sacrifice arrangement.

Your employer signs that too, along with a direct debit agreement (which will be short and similar to the standard terms for direct debit).‍

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Step 6: Finalising your lease and the delivery of your vehicle

Once all the paperwork has been signed, we’ll take care of the settlement process and tell you when, where and how to pick up your new car.

This is what we live for. We’re all giddy just thinking about it!

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Step 7: Leaselab welcome pack

You’ll get an email from us confirming that you’ve been onboarded on our platform and that everything has been approved.

Your employer will also receive an email detailing the payment amounts they need to apply to your pay cycle. From here, it’s really set and forget for them.

A short time later you’ll receive a welcome kit from the wonderful team at Leaselab, which includes your fuel card (if you're getting a petrol car) and your service and maintenance card.

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Step 8: During your lease

And you’re off! Windows down. Music up. The excitement of seeing your new shiny and polished car, gleaming in the sunlight as you drive it home. And all the while knowing that you’ll be paying less tax this year. This is a good day.

Throughout your lease, you’ll have special Leaselab cards to use to pay for fuel and streamline servicing. But if, for whatever reason, you don't use those cards to pay, you can simply log in to your Leaselab client portal to submit your receipts for reimbursement.

From there, you will also be able to keep an eye on your account balances and more!‍

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Step 9: At the end of your lease

When you’re a few months out from the end of your lease, we’ll be in touch to chat you through your various options. That way, you’ll have time to think about what you’d like to do.

The option you decide on really depends on your individual circumstances. However, novated leases are designed to put you in the best possible financial position - not just in terms of the thousands you can save in tax each year, but also with your car and its value at the end of your lease.

You might choose to:

Upgrade your car.

Get a new car with a new lease and pay around the same amount. If this suits you, you can sell your current car, pay off the remaining residual fee and pocket the difference for another windfall.

Keep your car and carry on.

If you'd like to keep your car but can’t afford to pay the residual at that time, don’t worry. You can enter into a new novated lease by financing the residual. This will cost less than the original one because you will be financing a much smaller amount this time, rather than the original purchase price of the car.

Keep your car and finish.

You’d simply pay off the residual and you’re done. You could even sell your car and pocket the difference between the residual and your sale price tax-free!

Once you’ve decided, a good novated lease provider (no need to look any further than Leaselab) will handle everything for you, whatever you choose to do.‍

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The bottom line: How a novated lease results in real savings

All in all, a novated lease is a simple process to set up, and almost certainly the most hassle-free way to have a car if you choose to include all of your running costs in your package.

If you buy your car outright or choose to go with a standard car loan, other than the higher costs, there’s a lot more administration and unexpected outlay involved.

Plus, it will also come out of your post-tax income, meaning there’s no tax savings.

And really, that’s the clincher: tax savings on a novated lease can be in the tens of thousands of dollars - especially over the course of your lease term.

But don’t take our word for it. Use the novated lease calculator and see for yourself!

Check out our current novated lease deals or contact our team to discuss how novated leasing can work for your specific situation.

A professional woman wearing glasses and a polka-dot blouse is seated at her desk in an office, smiling while on a phone call. A computer monitor, keyboard, notebook, and plant are visible on her desk. Colleagues work in the background.

Frequently Asked Questions

You've got questions and we've got the answers! Let's answer all of those pressing novated leasing questions you've got burining.

What are the requirements to get a novated lease?

You need to be a permanent employee (full-time or part-time) earning a regular PAYG salary through an employer willing to offer salary packaging.
You'll also need to meet the finance provider's credit criteria and earn enough to comfortably afford the salary deductions.
The vehicle must meet the lender's age and value requirements (typically under 12 years old at lease end, minimum $5,000 value).
Most medium-to-large employers already offer novated leasing, and smaller employers can easily set it up with our assistance.

Can you get a novated lease without an employer?

Not in the traditional sense, as novated leasing requires an employer-employee relationship. However, self-employed people with a company structure (Pty Ltd) who pay themselves a PAYG salary can set up a novated lease through their own company.

What happens if I change employers during my novated lease?

You have several options if you change jobs mid-lease. Best case: transfer the lease to your new employer if they offer salary packaging (most do).

The lease terms and vehicle remain unchanged; we just handle the paperwork between employers. If your new employer doesn't offer salary packaging, you can:

Continue the lease with after-tax payments (losing the tax benefits but keeping the car)
Pay out the lease early (termination fees may apply)
In some cases, return the vehicle.

Before accepting a new job, ask if they offer salary packaging.

Do all employers offer novated leasing?

Not automatically, but most medium-to-large employers do offer salary packaging, which includes novated leasing. Government employees, corporate workers and healthcare professionals commonly have access.

If your employer doesn't currently offer it, they can easily set it up. There’s no cost or financial risk to them, and administration is minimal.

Which option is best for me after my novated lease ends?

Depends on your situation:

Choose an upgrade if: You want the latest model and value new technology
Choose pay-out if: You love your car, have cash/access to a loan or want to be payment-free
Choose refinance if: You love your car but can't afford the balloon, or want to keep tax benefits flowing

We help you decide by providing trade-in valuations, calculating refinancing if relevant and explaining all your options.

Can I buy a car I've already found?

Yes! If you've found a specific vehicle (new or used, dealer or private sale), just provide us with the details. We'll coordinate the purchase and financing on your behalf.