Curious about novated leasing but not sure where to start?
You are not alone.
We speak to drivers every day who are exploring their options and want straightforward answers. Below are the five most common novated leasing FAQs we hear, answered clearly so you can understand how it works and decide whether it may suit you.
1. What is a Novated Lease?
A novated lease is a way to run your car using part of your pre-tax salary.
Your car repayments and day-to-day running costs are bundled into one regular payroll deduction.
This can reduce your taxable income, lower your take-home cost of driving, and remove the stress of budgeting for unexpected car bills.
Included in your lease budget:
- Finance repayments
- Registration
- Servicing and maintenance
- Fuel or EV charging
- Tyres
- Comprehensive insurance
Instead of paying these separately, they are covered in a single managed deduction. This keeps your costs predictable month to month.
CUPRA electric vehicle parked.
2. Do I Need to Buy a New Car?
No, you have options.
You can:
- Choose a brand new car
- Pick a used vehicle
- Or package your existing car if you already own one
3. What's Included in the Lease Budget?
Almost everything required to keep your car on the road is included.
The goal is to remove surprise expenses and make running your car simple.
Common inclusions:
- Fuel or charging costs
- Registration renewals
- Comprehensive insurance
- Scheduled and unscheduled servicing
- Tyres and brakes
- Roadside assist
Because these are included as part of your pre-tax lease budget, you are not dealing with large lump-sum bills across the year.
Two MINI vehicles parked outdoors.
4. What Happens If I Move Employers?
Changing jobs does not mean losing your novated lease.
Your options include:
- Transfer your lease to your new employer
- Privately continue payments until your new job begins
- Refinance or pay out the lease if circumstances have changed
The key is to contact your provider early so they can guide you to the most cost-effective path.
5. What Happens at the End of the Lease?
We begin contacting you around 12 months before your lease ends to help you decide what to do next.
Your end-of-lease options include:
- Upgrading to a new vehicle
- Refinancing your current vehicle
- Paying out the residual and keeping the car
- Selling the car and using the sale value to help pay the residual
There is no single "right" option. It depends on your needs and budget at the time.
Thinking about whether it's right for you?
You don't need to decide now.
A personalised quote can show you what the savings look like based on:
- Your income
- Your driving habits
- The car you want to drive
The numbers will speak for themselves.