Do you know that more than 60% of Aussies prefer used cars because of costs and long waits for new ones? It's a myth that novated leases are only for brand-new cars. In Australia, many are choosing to lease used cars. It's a smart way to get a car you like without the full cost.

Getting a novated lease for a used car is much like doing so for a new one. Similar to a car loan, you can own a used car you want without paying the entire cost upfront. Also, with a novated lease used car, you are eligible for repairs and other warranty products bundle.

Key Takeaways

• You can finance a used car with a novated lease.
• The comprehensive setup process mirrors that of leasing a brand-new car.
• A renovated lease on a used car can fit tighter budgets.
• This leasing option can also manage higher maintenance costs.
• Avoids the wait times associated with new car purchases.
• Offers similar tax benefits as leasing a new vehicle.

A novated lease is an option that helps with financing a car. It involves three parties: you, your employer, and a leasing company. Your employer takes on the car lease and pays from your salary pre-tax. This setup lowers your taxable income and includes car running costs. It's a good choice for those looking at how to save with tax and own a car.

What is a Novated Lease?

A novated lease is when your employer handles your car lease. They pay for it from your earnings pre-tax. This makes the process of payment simple and helps you save money by lowering taxable income. You can buy a used car on a novated lease from a dealership or private seller.

It also includes costs like upkeep, insurance, and registration. This applies whether it's a new or used car you're leasing. Having these expenses in the car lease makes for easier budgeting.

Tax and GST Savings

With a novated lease, you can pay for a used car from your salary before tax, leading to significant tax savings by reducing your taxable income. Additionally, opting for a novated lease for a used car brings about savings on GST. This includes GST savings on the initial purchase of the vehicle as well as on fuel, insurance, and repairs.

Budget-Friendly Payments

Novated lease payments are deducted from your pre-tax income and these payments cover various costs associated with the vehicle, such as insurance, maintenance, and running costs, providing a comprehensive solution for managing your car expenses effectively.

Age Limitations of the Vehicle

One important rule is the vehicle's age. The car shouldn't be older than 12 years old at the end of the lease term. 

Condition and Inspection Requirements

The car’s condition and a thorough inspection are mandatory for a novated lease on a used car. The used car must meet the required standards, and a mechanic will conduct a detailed inspection. This step is crucial to avoid unexpected repairs and additional costs down the line. Whether you’re buying from a dealer or it is a private sale car ensuring the used vehicle is in top condition is essential for a smooth leasing experience.

Many think novated leases are only for new cars. But, lots of Australians get them for used cars too. You can lease a used car from a private sale or dealer. This opens up more options to more people.

Some also believe the car has to be brand new for a novated lease. This isn't true. You can lease a second-hand car with the same benefits. Using a novated lease calculator shows how this can be a smart move.

Understanding fringe benefits tax is important. The tax rules are the same for new and used cars under a novated lease. This can save you money, especially if you're thinking about a second-hand car.

Know the truth about novated leasing. It can work for new and used cars. This knowledge helps you choose what's best for you.

A novated lease on a used car can save upfront costs income tax and GST benefits. 

Knowing if you can get a novated lease is key. The car shouldn't be older than 12 years old at the end of the lease term. Keeping your car for your novated lease in good condition helps avoid issues and makes it worth it in the long run. A novated lease helps you plan your money better too.

Are you in search of a used car on a novated lease? Look no further than Driva. We've established a robust network of over 30 lenders, allowing you to effortlessly compare your options. Discover the perfect solution tailored to your needs, all while benefiting from our transparent rates and fees. At Driva, transparency is our priority. Plus, you can complete your application 100% online for added convenience.

At the end of the lease term, you can even apply your savings towards purchasing the vehicle outright. With a lower lease compared to a brand-new car, Driva offers options for salary packaging a car that's tailored to your budget. Don't miss out on the savings associated with a novated lease - apply for a novated lease and let Driva help you find the perfect car for your needs today.

What is a novated lease?

A novated lease is a popular way for employees to purchase a new car or used car using part of their pre-tax income. It involves a three-way agreement between the employee, the employer, and a leasing company where the employee leases the vehicle and the employer is responsible for making lease payments on behalf of the employee.

How do I get a novated lease?

To get a novated lease, you need to first find a vehicle you want to purchase. Then, you can enter into a novated lease agreement with your employer and a leasing company to start the process of salary packaging your new or used car.

What are the benefits of a novated lease?

There are several benefits of a novated lease, including tax savings, the ability to choose the car you want, savings on both the purchase price and running costs, and the convenience of having lease payments deducted from your pre-tax income.

Can I get a novated lease for a used car?

Yes, you can certainly opt for a novated lease for a used car. This allows you to benefit from the advantages of a novated lease while purchasing a second-hand car of your choice.

What are the savings associated with a novated lease used car?

The savings associated with a novated lease can include reduced tax liabilities, lower upfront costs, potential GST savings, savings on running costs, and possibly even GST savings on the purchase price of the vehicle.

How do I apply for a novated leasing for used cars?

To apply for a novated lease, you typically need to speak with a specialist novated leasing company or a participating dealership. They will guide you through the application process and help you determine if you are eligible for a novated lease.

What happens at the end of the lease term?

At the end of the novated lease term, you usually have a few options. You may be able to return the vehicle, purchase it outright, or even lease for a used car if you wish