Novated Lease
A smarter way to own a carDrive the car you want and take the hassle out of managing it. Choose Easi and turn your car expenses into smart savings today.
What is a novated lease arrangement?
A novated lease is a car financing method that allows you to lease a vehicle using pre-tax dollars, helping you pay less income tax while enjoying the convenience of bundled running costs.
It’s an agreement between you, your employer, and a leasing provider where your employer deducts a regular payment from your salary to cover the finance repayments and other vehicle-related expenses.
Also referred to as a salary sacrifice car arrangement, a novated lease is popular among Australian employees because it offers strong tax advantages while taking the stress out of managing car ownership.
Since the payments come out of your salary before income tax is applied, you effectively pay less tax, which can reduce your taxable income and leave more take-home pay.
You can also make your drives greener through an electric vehicle novated lease, allowing you to choose from popular brands such as Tesla, BYD, Polestar and more.
A fully maintained novated lease from Easi includes all running costs such as servicing, fuel or charging, insurance, registration, and tyres. Regardless of if the car is for work or personal use, everything is rolled into one payment, giving you complete control without the surprise bills.
How does a novated lease work?
A novated lease is a convenient and cost-effective agreement between you, your employer, and a novated leasing provider, like Easi. You choose a car you love and pay for it directly from your wages through salary sacrificing. This employee benefit is very popular as your employer’s only involvement is paying across your money for your lease into your easi account.
Choose the car that suits your needs and an easi lease package to cover the expenses.
We’ll help secure the car, set up the lease and manage all the paperwork between you and your employer.
Your employer pays money from your salary into your leasing account to match the package you’ve chosen.
The car you want for less
What does a novated lease include?
Drive the car you want with payments conveniently deducted from your pre-tax salary. We'll help you organise finance and buy the car you've got your eyes on.
Forget stressing about your upcoming car rego. We handle the payments for you, no matter your state’s vehicle registration requirements.
You’ll never get caught with a bald tyre with Easi. From standard asphalt road tyres to heavy-duty offroad tyres, it’s covered in your lease payments.
Find peace of mind with round-the-clock coverage in case of breakdowns. No matter the issue, roadside assistance is available to you as part of your lease.
Keep yourself on the road for longer without worrying about managing costs. Cover your electric charging or fuel expenses as part of your lease package.
Ensuring your vehicle is well maintained is key to extending its life. Keep your car running smoothly with regular services booked and paid.
Car insurance can be a hassle to manage - but no longer. Comprehensive insurance is included in the price of your lease, giving you peace of mind. You have the freedom to choose either our provider, Armada, or your own provider.
A new car deserves the best care, inside and out. That’s why regular car washes are part of your novated lease package, keeping you driving in style.
Don't just take our word for it, hear from our loyal customers!
Easi have been amazing. Abby is an absolute star, from helping me choose the perfect vehicle to answering all my questions along the way. I am so happy with my new car and the support provided was exceptional. Thanks Abby and Easi really appreciated all the assistance and time that you gave me so far with the Novated Lease process.
View Google review
HIGHLY RECOMMEND! I had quotes from majority of the novated leasing companies and Easifleet were by far the most professional and easiest to deal with. Justin Hocking was great to deal with and very fast to respond to any questions I had. Picked up my new Tesla in less than a week and that included setting up my employer with Easifleet and organsing the finance. Very impressive!
A big THANK YOU to Anthony Pasla for his patience answering all my questions as he guided me through my first novated lease. He expedited the paperwork to meet a tight vehicle delivery deadline and was very responsive to all communication (phone and email). From initial quote to final lease paperwork, Anthony kept things simple and hassle-free, and I highly recommend Easi as a novated lease provider. Thank you Anthony for making it all "Easi".
Exceptional Service from Easifleet - I recently had the pleasure of working with Stan Wright at Easifleet, and the experience was nothing short of exceptional. Stan's professionalism, knowledge, and customer-centric approach made the entire process seamless. He took the time to understand my specific needs and kept me informed every step of the way, turning what could be an overwhelming process into an enjoyable one. Stan's commitment to customer satisfaction sets a new standard in fleet management. Whether it was handling paperwork efficiently or offering insightful advice, Stan exceeded expectations at every turn. I highly recommend Stan Wright and the Easifleet team for anyone seeking a hassle-free and genuinely exceptional service experience."
View Product Review
New Novated Fleet Car. We got a great car at a great price and was happily helped though the process by Joslyn. Thanks.
Learn how much income tax you could save on your next car
Easi’s team has over 20 years of experience in novated leasing, and we’re dedicated to helping you potentially save thousands on your next car.
Our team is available for a chat no matter the time of day, while we have a number of resources available to help provide as much info as possible.
Our short answer to this question: Yes. Definitely.
Novated leases are definitely worth it and are actually one of the most affordable car financing options available for Australians. So, it’s a good thing they’re gaining traction as more people come to understand the benefits they offer.
- It’s cost- and tax-effective, so you have more spending money.
- There are no minimum mileage requirements.
- It makes getting a new car easy and convenient.
- A novated lease is a practical, cost-saving solution for everyone.
- A novated lease comes with a fuel card.
When you get a novated lease on a new or used car, the employer pays for the car lease (including all running costs) on behalf of their employee. Then the employer makes monthly deductions from the pre-tax earnings of the employee to cover the leasing expenses.
Once the contract term is over, the employee has the option to pay off the outstanding amount and take ownership of the car. Or they can trade the existing car and get a new car model under a different novated lease.
If you're looking at cars near or above the luxury car tax threshold, a novated lease can still be a cost-effective option. While you won’t technically own the car during the lease period, you have the choice to take on vehicle ownership at the end of the term by paying the remaining purchase price as a residual value.
If you want to enjoy significant tax savings on car running costs with a novated lease agreement, head to our novated lease calculator.
In general, you can claim deductions for expenses spent on a car you own or lease for work purposes. However, it’s different when you ‘salary sacrifice’ a car, as it is done through a ‘novated lease’ arrangement.
In this case, the employer is the party leasing the vehicle from the finance company, not you, the employee. In a salary sacrifice arrangement, the employer becomes entitled to the benefits of calculating the fringe benefits tax (FBT) payable by them on vehicles provided to employees. The employer either owns or leases the vehicle in a salary packaging arrangement, which makes the car available for their employee’s (you) private use.
So, since you, the employee, don’t own or lease the car in such cases, you can’t claim any ongoing running costs associated with the car, including depreciation.
Just like other financial establishments, leasing companies collect basic information on applicants to have a complete picture for assessment purposes. In particular, these lending establishments consider four key areas during novated lease application assessment: capacity, collateral, character and credit.
But in the case of novated leasing, most everyone is considered eligible as long as they are permanently employed; that is, they have a wage and are paying taxes. For some lenders, it also helps for you to not have a bad credit history.
For novated leasing, most financiers consider the fact that the lease payments will be coming from your employer before you pay any taxes. So, even if you have minor credit issues, novated leasing financiers may be ready to overlook those as long as those are paid or may be paid before the finance is settled.
This question is closely related to the previous one, so the answer is definitely a ‘yes’ – a credit check is a routine task a financier must perform when you apply for a novated lease.
After completing an application, you’ll be asked to provide proof of taxable income, valid identification and privacy consent. Your application tells the bank or financial establishment that you’re in a good financial position and have the capacity to make lease repayments.
The credit check is done to complete your application process and indicates to the bank or finance company that you have the ability to repay the loan amount. In case there’s a negative entry in your credit file, as long as it has been resolved or it’s a minor issue (e.g., late utility bill payments), it shouldn’t affect the outcome of your novated lease application.
It’s not so easy getting out of a novated lease prematurely. Unlike in a car loan where you can sell the vehicle and use the proceeds to pay off the balance, a novated lease works differently.
Since lending companies generate a profit based on the terms of your lease and the payments you make, you’re supposed to conclude your lease within the agreed time frame. So, it’s understandable for them to ensure you adhere to the car lease terms.
To discourage premature termination, certain penalty charges come with it, depending on the financier. These possible penalties and added expenses include:
- Full payment for the remaining balance of the lease
- Early termination fee
- Costs of preparing the vehicle for sale
- Storage and transportation of the vehicle
- Leasing-related taxes
- Negative equity between the remaining lease amount and the current value of the vehicle
- Being required to pay off all the remaining payments of the lease
Again, the conditions of early novated lease termination all depend on the lessor, but you should expect to encounter certain financial complications or difficulties.