What is a novated lease?

Buying a car with a novated lease is easy and hassle free. It’s cost effective too. You not only save on the cost of your car and its running costs: you also pay less tax. Add all of this together and you could be saving thousands of dollars.

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What can I include?

As well as the finance for your new car, you can choose to include as many or as few other car expenses as you want in your novated lease. Annual costs such as your car insurance and roadside assistance can be included as well as ongoing costs such as fuel and even your car wash costs.

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How do I arrange a novated lease?

Purchasing your car with a novated lease is easy. We arrange everything for you, including the test drive and all the paperwork. Getting into your next car has never been easier.

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How do I save?

A novated lease is one of the most cost effective ways to buy and run a car. As well as enjoying a discounted price on the cost of your vehicle with our national buying power, you can save GST and reduce the amount of income tax you pay.

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Frequently Asked Questions

  • Can anyone apply for a novated lease? How do I know if I'm eligible?

    A novated lease is a three way agreement between you, your employer and a finance company. As it is a form of salary packaging, your employer must have an agreement with a salary packaging organisation like Salary Solutions before you can apply.

  • What happens at the end of the lease?

    Before the end of the lease term, you will be contacted by a Salary Solutions customer service team member to discuss your options:

    • Purchase another vehicle: Salary Solutions can help you find a new vehicle and arrange your new budget, taking into consideration any outstanding balance from your previous lease. To finalise your existing lease you will need to pay the residual value by either selling your vehicle privately or trading it in and receiving cash (you cannot use this to negotiate a reduction on the new vehicle’s purchase price).
    • Lease the same vehicle again: If you are happy with your current vehicle and it is less than 8 years old, you can choose to lease it again. This results in a lower finance repayment and lower residual amount at the end of your new lease term.
    • Buy the vehicle outright: You can finalise your lease agreement and buy your vehicle outright by paying the residual value in full.
  • What happens if I leave my job, or go on maternity leave or leave without pay during the lease period?

    If for some reason you are no longer being paid a salary by your employer, your novated leasing packaging arrangement will cease. However, you are still responsible for making the loan repayments.

    If this occurs, there are a number of options available to you:

    • Continue to make the lease repayments and running costs yourself out of your after-tax income
    • Request a payout figure and finalise the lease with payment in full*
    • Transfer your lease to a new employer (if the employer allows).

    *A novated lease is a commercial finance product where interest is applied upfront and a residual is payable. This can result in a payout figure greater than the value of the vehicle in the event of early lease termination.