Save $1,000's with a used car novated lease
Compare Novated Lease Used Car Options
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Dandi W
Top service, above and beyond
Reagan has gone above and beyond to make it as easy and as straightforward as it can be. This isn't my first Novated Lease, but definitely the best...
David
Sean Edema at NLA was excellent
Sean Edema at NLA was excellent.
He was informative, efficient and accessible.
I recommend his services highly.
Joshua A.
5 stars for NLA!
I cannot recommend Payton and NLA enough if you are looking for a novated lease. Even if you don’t end up going with NLA they should be your first conversation....
Getting a used car with a novated lease
The simple answer is: Yes, you can buy a used car with a novated lease.
Provided the vehicle is not older than 12 years at the end of your lease term, it will generally qualify for a novated lease.
You can buy a used car privately or via a dealership.
What you need to know about novated leasing used cars
The most unique and important savings aspect of a novated lease involves removing GST from the cost of both acquiring and operating the vehicle.
With a novated lease:
- You get significant GST savings on the purchase price when acquiring the car from a dealership.
- You also receive significant GST savings on the vehicle's running costs under a fully maintained novated lease agreement.
If you’re buying a used car:
- You will retain the GST savings if you purchase the car from a dealership.
- You won’t retain the GST savings if you purchase through a private sale.
- You will retain the GST savings on the operating costs.
How to get the best deal on a second-hand vehicle for your novated lease
The primary benefit of a novated lease is that it helps you save money when acquiring a vehicle - payments are made from your pre-tax salary and ultimately reduce your total taxable income.
When choosing a second-hand vehicle over a brand-new vehicle, it’s safe to assume that you’ll also generally find a used car to be the cheaper option.
And today, used cars are being novated more than ever before due to stock availability of new cars.
Some government incentives on EVs cover used cars as well as new ones, meaning you may still be eligible for a further saving.
There really are only two restrictions when using a novated lease for a used car:
- The car needs to be a passenger vehicle
- The car’s maximum payload cannot exceed 1,000 kg (which is 99% of cars)
Find out more about your novated lease options in our jargon-free novated leasing explainer.
Electric Vehicle Benefit on Used Cars from July 01, 2022
A recent change by the Australian Government means the if you choose to novate a second-hand electric vehicle or plug-in hybrid electric vehicle that was first registered after 1 July 2022, you could save you significantly more money by removing additional Fringe Benefits Tax (FBT) obligations.
FBT on a novated lease is paid by the employee using their post-tax dollars and previously applied to all vehicles under a novated lease agreement.
However, the new Treasury Laws Amendment (Electric Car Discount) Bill 2022 removes FBT liability for zero or low emission (i.e. electric) cars acquired through a novated lease agreement.
With these new changes, a used electric vehicle may qualify to be exempt from the FBT liability saving you thousands of dollars.
