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Novated Lease

Novated Lease:

  • Enables employees to salary-package their cars which can result in tax benefits.
  • A Novated Lease is a three-way agreement between an employee, their employer and the lender
  • The employee signs a finance lease agreement, both the employee and employer sign a Novation  Agreement
  • under which the employer agrees to make the repayments out of the employee’s salary.
  • The credit risk is assessed on your client, not their employer.
  • If your client ceases employment, the lease may be “re-novated” to another employer, or the client simply begins making the repayments directly.
  • The exact benefit to the employee must be independently calculated by a qualified financial advisor taking into consideration that client’s salary and overall tax position, car value, kilometres to be driven, FBT rates and tax rates.

Typical eligibility requirements for Novated lease:

  • The vehicle must not be older than 9 years at the end of the loan term for novated lease.
  • Balloon payment will depend on age of the vehicle and term of the novated lease..
  • Maximum Balloon payment is 35% for a 60 months term novated lease..

Click here to find our car loan offers and Bad credit car loan offers.

Simply send us the details of your desired purchase and a brief your financial situation to get a free quote for your novated lease..

Click here to submit a query to get an obligation free quote for novated lease.

Click here to read documentation process for novated leasing applications.

Click here to view interest rates for nevated lease.