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How Novated Lease Works!
What Is a Novated Lease?
If you’ve been offered the option but don't know exactly what a novated lease is, here's your chance to become acquainted with it.
Also known as a car salary packaging or salary sacrifice scheme, a novated lease is an arrangement you make with your employer to use the services of a novated leasing or fleet provider for your work-related transportation needs.

With a novated lease, all you have to do is choose a car and then save yourself a significant amount of cash by paying for the car using pre-tax dollars from your salary. In this arrangement, the vehicle you choose becomes part of your salary package. You won’t need to worry about making payments because your employer will make car payments directly to the novated leasing or fleet provider from your pre-tax income.
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How Does a Novated Lease Work?
So, how does a novated lease work? If your company offers a novated lease salary sacrifice scheme, all you need is to go through the following steps:
  1. Send your novated lease enquiry to Easi.
  2. Our vehicle leasing specialists will then provide you with a quote based on the novated lease.
  3. You sign off the quote and submit your completed individual credit application. Your employer also signs off the quote provided.
  4. When everything is in order, your application is approved by Easi.
  5. You’ll then be asked to confirm the vehicle colour and accessories you want. Your designated Easi leasing specialist orders the vehicle based on your specifications. If you source the vehicle of your choice, Easi will send an invoice request to your chosen car dealer.
  6. Easi then generates all the required novated lease documents that need to be signed: Deed of Novation, Finance Schedule and Transfer of Ownership.
  7. The novated lease contract is settled by Easi.
  8. Easi takes charge of vehicle maintenance.
  9. If you leave your employer or are terminated from service, Easi will process the transfer of vehicle ownership to you, the employee.
  10. See? The novated lease salary sacrifice process is pretty straightforward and easy – especially with the help of Easi leasing specialists.
Novated Lease Benefits
There are several novated lease benefits for both employers and employees.
Employers benefit in the following ways:
  • Companies that offer novated lease arrangements usually attract more candidates because they are adding value to their employee salary package.
  • Offering novated leases is a less stressful alternative to running and maintaining an entire fleet of company vehicles.
  • Get acquisition fleet discounts.
  • When an employee leaves or is terminated, the employer is freed from the responsibility of making car payments to the finance company.
Individual Benefits
Opting for a novated car lease in your new job lets you enjoy the following advantages:
  • Discount on the purchase price: To promote their service, novated lease providers usually offer substantial discounts on car purchase costs, sometimes exceeding $6,000. That’s a lot of savings already, just for the price of the vehicle you choose.
  • No deposit requirement: Novated car leases do not require deposits nor take any deposit allowed under tax rules.
  • Greater flexibility with choosing a vehicle: Depending on the novated lease or fleet provider, you have the freedom to choose a vehicle you want.
  • Tax savings and more disposable cash: By making payments from your pre-tax salary dollars, you save on taxes and receive more spending money in the process. No goods and service tax (GST) will be charged on the initial purchase price of the vehicle and running costs.
  • Stress-free budgeted payments: With a novated lease, all payments are pre-arranged and budgeted for, so there are no unpleasant surprises and worrisome lump sum payments.
  • Vehicle ownership: At the end of the term, or when you leave (or are terminated by) your employer, vehicle ownership is transferred to you. This also means you’ll be dealing directly with the novated lease provider. You can also continue your lease even when you change jobs.
  • Convenient access to statements: Accessing statements is convenient and simple since transactions can be done online. So if you have any doubts or queries regarding your payments or any aspect of your novated lease, you can get the information quickly and easily.
  • Selling and trading assistance: If you want to change vehicles, you’ll get assistance in selling or trading your vehicle. This does away with the need to advertise or pay for sales listings for your old vehicle.
Novated Lease Tax Savings
Among the more popular benefits of the novated lease scheme are the savings on novated lease pre-tax deductions.
Since the repayments in a novated car lease are taken from pre-tax dollar earnings, the tax savings over the duration of the lease can be significant.
Moreover, when you purchase a car from a novated vehicle leasing provider like Easi, GST won’t apply to the cost of the vehicle nor to any running costs. And since Easi also takes over vehicle maintenance, these savings, when taken together, can mean savings in thousands of dollars.
What Happens at the End of a Novated Lease?
Once your novated lease ends, you’ll take over the funding of the novated lease residual value. At this stage, you have several options to choose from:
  • Get your vehicle auctioned off and buy a new one.
  • Arrange the sale of your car privately.
  • Pay off the residual value and purchase the car.
  • Trade your current vehicle for a new car.
If you opt to sell the car at the end of your lease, make sure it is in good condition. If your vehicle is in tip-top shape, it will be easier to sell your car at a price that’s equivalent to the residual value.
By choosing Easi as your novated lease provider, you’re assured of a well-maintained car with an up-to-date service history.

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Novated Lease Resources
While we’ve provided the salient points of novated vehicle leasing, there’s so much more you can learn about it from our resources.
After all, the more you know about the novated lease salary sacrifice scheme, the easier it will be for you to make an informed decision.
View Resources

Drive Your Dollars Further Like Our Clients

Sarah's Annual Savings with Easi:
$5,400
With Easi, It’s all there in the name! The process has been easy from start to finish and I couldn’t be happier with my new car - and all the money I’ve saved!
Paul's Annual Savings with Easi:
$4,823
Easi have been nothing but professional, helpful and efficient and I couldn’t recommend them enough for anyone looking for a novated lease.
Jenny's Annual Savings with Easi:
$5,215
Easi have made a complex process straightforward and efficient and I would recommend an Easi novated lease to anyone wanting to save on a new car.
Steve's Annual Savings with Easi:
$4,976
I’ve had a Easi novated lease for 4 years now and I still can’t believe how much I’ve saved on my car costs! If you're thinking about a novated lease with Easi, just do it!
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