• Use Pre-Tax dollars to make repayments as part of a salary packaging arrangement

  • Loan terms generally 1 - 5 years

  • Lender owns the item until the loan is paid off

  • Secured basis

A Novated Lease is a Three Way financial arrangement between you as an employee, your employer and the lender.

How a Novated Lease works

  1. The employee leases a car of their choice.

  2. The company and the employee sign novated lease documentation with their lender of choice.

  3. The company makes all the lease repayments.

  4. The company gets the lease repayments back from the employee’s pre-tax salary.

  5. If the employee leaves the company the novated lease stops. The ex-employee takes the car with them and is responsible for the repayment of the lease.

  6. At the end of the lease the employee or ex-employee has these options:

  • Return the vehicle to the lender for sale, where the employee is responsible for any shortfall  between the residual value and sale price.

  • Refinance or extend the lease.

  • Make an offer to buy the car.

Benefits Include


  • Lease payments can be made from pre-tax dollars, maximising the tax benefits of salary packaging.

  • Control to choose the vehicle you want, at the dealer of your choice.

  • The vehicle is not tied to your employer, if you change jobs the vehicle stays with you.


  • The responsibility of ongoing costs, plus refinancing, purchasing or selling of the vehicle rests with the employee.

  • Paperwork costs associated with buying, managing and disposing of company vehicles, are saved

  • Attract staff with a tax effective, flexible and fully maintained vehicle lease option. 

Credit Guide Available on request