Is Novated Lease Only for New Cars?

No, a novated lease isn’t restricted to new cars—it can also apply to used vehicles. This flexibility allows you to choose a car that fits your budget and preferences, whether it’s fresh off the lot or slightly older. Here's what you need to know about novated leasing for second-hand cars.

Eligibility for New and Used Cars

A novated lease gives you the option to lease either a new or used car, provided the vehicle is less than 15 years old by the time your lease ends. This allows you to select from a broader range of cars, ensuring you can find a model that suits your lifestyle without breaking the bank.

Tax Benefits Still Apply

Whether you lease a new or used car, the same tax benefits apply. Payments for a novated lease are deducted from your pre-tax salary, which means you could save a significant amount of money. This reduction in taxable income makes novated leasing an attractive option, regardless of whether the car is brand new or second-hand.

Comprehensive Running Costs

One of the major advantages of a novated lease is that it bundles running costs like fuel, insurance, and maintenance into the lease agreement. This means you won’t have to worry about unexpected expenses, as the financial package covers most of the vehicle’s ongoing costs, whether you opt for a new or used car.

Conclusion

In short, a novated lease offers great flexibility, applying to both new and used cars. Whether you’re looking to lease a brand-new model or a well-maintained second-hand vehicle, the tax savings and bundled running costs make it a smart choice.

Thinking about leasing a used car through a novated lease? Get in touch with us today to explore your options and start saving!