The team I get a novated lease if I'm not sure my employer offers it?

Not every employer participates in salary packaging arrangements. A broker or leasing company can check with your employer or point you to providers who set this up even for employers without an existing scheme.

What happens if I change jobs during a novated lease?

The lease is tied to your employment, so leaving your job usually means the lease needs to be paid out, transferred, or converted, which is worth understanding before signing on.

Is a novated lease worth it for a lower income earner?

The tax benefit is smaller for lower income brackets, so a standard car loan is often more straightforward and can end up cheaper overall in that case.

Novated lease vs car loan: which finance option to choose

Buyers cross-shopping vehicle finance often aren't choosing between two car loans, they're choosing between a novated lease (salary-packaged through an employer) and a straight car loan taken out personally. These run on completely different mechanics: a novated lease uses pre-tax salary and bundles running costs like fuel, servicing and insurance into one payment, while a car loan is a personal debt where you own the car outright and cover running costs separately.

A broker who understands both can work out which one actually suits your income, tax bracket and how long you plan to keep the car, rather than defaulting to whichever product they're more used to arranging.

the team how salary packaging a novated lease affects your take-home pay and tax position
the team total cost over the loan/lease term, not just the advertised repayment figure
Flags what happens at lease-end (residual payout) versus loan-end (you already own the car)

What it costs

Novated leases bundle GST savings and pre-tax deductions that can lower effective cost for higher-income earners, but they include an ongoing management fee and a residual balloon payment at the end. Car loans have straightforward interest costs plus fees like establishment and monthly account fees, and no residual to pay off since you own the car from the start. Which is cheaper depends heavily on your income, tax rate and how long you keep the vehicle.

Top 3 by our score

Ranked from our published scoring of public Google reviews for car finance and loan company.

1. Probroker Mortgage & Finance Brokers
5.0★ · 146 reviews

93
2. Premium Portfolio Finance - Mortgage Broker Fremantle
5.0★ · 140 reviews

93
3. Central Lending Solutions
5.0★ · 312 reviews

95

See the full ranking → · Browse all providers

FAQ

The team I get a novated lease if I'm not sure my employer offers it?: Not every employer participates in salary packaging arrangements. A broker or leasing company can check with your employer or point you to providers who set this up even for employers without an existing scheme.
What happens if I change jobs during a novated lease?: The lease is tied to your employment, so leaving your job usually means the lease needs to be paid out, transferred, or converted, which is worth understanding before signing on.
Is a novated lease worth it for a lower income earner?: The tax benefit is smaller for lower income brackets, so a standard car loan is often more straightforward and can end up cheaper overall in that case.

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