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Novated Leasing

A finance option that allows you to access some of your salary before-tax. It’s a cost-effective way to get into your next car.

What is a novated lease?

A novated lease allows you to finance your next new, used or existing car and it's running costs by accessing some of your salary before-tax. This means you could pay less income tax and take home more pay.

And if you decide to take out a novated lease on an eligible electric car, thanks to the Federal Government's Electric Car discount, all your cars' payments are made before-tax, which means you could take home even more pay.

Novated lease benefits
The five key benefits why thousands of Australian drivers choose a novated lease.

Tax savings: Access income tax savings by paying for your car and running costs from some or all of your before-tax salary depending on the car you choose
Fleet discounts: Our buying power means you get access to further fleet discounts on new cars
Save on GST: Depending on your employer, you could save GST on the purchase price of the car and the ongoing running costs for the life of your lease
Budget convenience: A simple regular payment covers your finance payment and your car’s regular expenses such as registration, insurance, fuel or charging, maintenance, tyres and roadside assistance
24/7 driver support: Enjoy peace of mind with 24/7 driver support, always on hand to offer advice in any way we can

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Join us for live webinar where we answer your questions about novated leasing.
 

Your questions answered
For more novated leasing FAQ’s, visit our Frequently asked questions page.

Can I put down a deposit or use a trade-in to reduce the cost of the vehicle?

With Fleetcare, you can trade in a car as part of setting up your novated lease. However, trade-in funds can’t be used to reduce the lease principal. A novated lease is for full sale price of the vehicle.

What happens at the end of my lease?

When you come to the end of your lease, you can:

  1. Trade in, trade up - Trade in your novated lease to Fleetcare (or sell it privately) and upgrade your car with a new lease.
  2. Refinance - Refinance and extend your novated lease residual amount for another lease term.
  3. Payout - Payout your novated lease residual amount and the car is yours.

Learn more about what to expect at the end of your Fleetcare novated lease.

What happens if I find I’m travelling more/less kilometres than nominated?

The simplest way to make changes is to contact your Fleetcare account manager. They can adjust your salary deductions and realign your payments at any time during your lease.

How are residual values calculated?

The residual value is set according to Australian Tax Office (ATO) guidelines. It’s based on the total amount financed and the length of your lease. Residuals ensure leases are structured differently to loans, reflecting expected car value at lease end.

Tem of Lease Residual %
12 months 65.63%
24 months 56.25%
36 months 46.88%
48 months 37.50%
60 months 28.13%
What happens if I leave my employer?

If you leave your employer, you have 3 options:

  1. Re-novate - If your new employer offers novated leasing, you can transfer your Fleetcare novated lease to your new employer, and your lease will continue as normal.  
  2. Finance only - If your new employer doesn’t offer novated leasing, you can continue making finance only repayments. This option removes the salary packaging benefits, but allows you to keep the car and maintain the lease until it ends.
  3. Sell your car - You can choose to sell the car and use the proceeds to pay off the residual value.

How the process works
A step by step journey of your novated lease from start to finish.

novated lease lifecycle

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"This is my second lease with Fleetcare. I have 2 vehicles which I lease and I am very happy with the service provided."
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Disclaimer: Income Tax savings are dependent on your taxable income and individual tax status. GST savings are dependent on your employer’s policy and accounting treatment of GST.

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