The Smarter Way to Get A Great Deal on a Novated Car Lease!
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Who Can Get A Novated Car Lease?
A novated car lease is an attractive option for many Australian employees, offering a tax-effective way to finance a vehicle through your salary package. But who exactly is eligible for a novated lease?
In general, any employee who receives a regular salary and works for an employer willing to participate in the agreement can apply for a novated lease. This type of lease is particularly popular among full-time and part-time employees in both the public and private sectors. It’s not typically available to casual workers, contractors, or sole traders, as it requires a stable employer-employee relationship.
A novated lease is a three-way agreement between:
You (the employee) – who selects the car and agrees to the lease terms.
Your employer – who deducts lease payments from your pre-tax salary.
The finance company – who provides the vehicle finance.
Under this arrangement, the employer takes on the responsibility of making the lease payments directly to the financier using pre-tax income from your salary. This reduces your taxable income, potentially saving you thousands of dollars in tax over the lease term.
One of the biggest perks? Employers can offer this benefit without increasing your salary or incurring extra business expenses. It’s a win-win: employees enjoy access to a new car and potential tax savings, while employers enhance their benefits package at no additional cost.
And if you leave your job? The lease responsibility reverts to you, the employee, giving you the flexibility to take the car with you or renegotiate the lease terms.
If you’re looking for the best car finance option that blends flexibility, savings, and convenience, a novated lease could be a strong contender—especially with support from a knowledgeable car finance broker like eCarz.
A Novated Car Lease Is For:
- Individuals
- Business Owners Who Want to Provide Employee Benefits
- Those Who Like to Often Upgrade Their Car to a Newer Model
- Those Who Don't Like the Hassle of Keeping and Maintaining an Old Car
- Those Who Do Not Want to Pay Our a Large Upfrom Payment as Sometimes, an Upfront Payment Is Not Even Required
Why Choose eCarz?
- Low Interest Rates*
- Customised Finance Solution That Best Suits Your Needs
- A Panel of Over 60 Lenders
- Quick Approval (some within 10 seconds)
- High Approval Ratin - We Are The Finance Experts
- Obligation-Free Quotes
- Satisfaction Guaranteed - Check Out Our Testimonials
*based on commercial contract for a new vehicle with specific criteria. Click here for other car finance options.
This explains the three-party agreement between employee, employer, and financier, and how repayments are made using pre-tax income.
People want to know about tax savings, convenience, bundled costs (fuel, insurance, maintenance), and access to newer vehicles.
This often includes queries about long-term commitments, potential costs if employment ends, or if the car exceeds agreed mileage.
People want to understand what their options are if they change jobs — whether they can transfer the lease, take over payments, or refinance.
Many want to know if they’re limited to new cars or if they can lease used vehicles, luxury models, or even electric cars.
This usually revolves around comparing long-term costs, ownership, and flexibility.
People often ask if things like fuel, insurance, servicing, registration, and tyres are included (this depends on whether it’s a fully maintained lease).
This addresses residual value and whether employees have the option to purchase the vehicle when the lease ends.
This is frequently asked, and the answer is typically no — novated leases are for salaried employees with PAYG income.
People often want an honest breakdown of pros and cons to help decide if it’s the best car finance option for their situation.