A Novated Car Lease is a three-way agreement between

1. A car financier;
2. Your employer;
3. An employee (you!).

You obtain Car Finance for a car of your choice from the Finance provider for a fixed period of time. Your employer then takes the repayments out of your “pre tax” salary, doing a “salary sacrifice”, thus reducing your taxable income. While the contract for the finance is between the you and the finance provider, if you change jobs, you take your Novated Lease and your car with you.

At the end of the term of the Novated Lease you have the option to purchase the car for a set residual, or you can sell or trade. If you find you make a profit from selling the car, then it’s your's to keep!

What kinds of Novated Leases are there?

There are five kinds of novated leases

1. Fully Maintained Novated Lease - where all the operating costs of the vehicle are covered, such as car insurance, vehicle registration, fuel, tyres and servicing. In this instance you pay a regular monthly payment, and the Novated Leasing company covers all maintenance expenses;
2. Non Maintained Novated Lease - you are responsible for all operating expenses associated with the vehicle;
3. *NEW* Novated Bike Lease;
4. *NEW* Novated Operating Lease;
5. *NEW* Fully Maintained Novated Operating Lease.

Features of a Novated Lease?

There are numerous benefits of a Novated Lease including

• The ability to cost effectively package the car of your choice. This process is completely flexible and only limited by how much you are able to allocate from your salary;
• The car is yours to use 100% of the time, it’s not a company car;
• Repayments can be fixed over a period of 1 to 5 years;
• As all costs are paid in pre tax dollars, a Novated Lease can be tax effective;
• As a car purchased under a Novated Lease often qualifies as a company car, we can obtain fleet discounts on all new cars;
• Monthly Vehicle Reports that outline important information on how the car is tracking to the program. For added convenience, these reports are emailed directly to you;
• A Novated Lease is portable and may be re novated from one employer to another (depending on employer acceptance).

Need More Information?

If you would like more information on a Novated Lease, one of our experienced Novated Lease consultants can prepare you a tailored Novated Lease package.

Call the team at Advance Car Loans now on 1300 798 873 or complete the friendly enquiry form and we'll get back to you shortly.