Can I Get a Novated Lease with a Used Car?

Novated leasing in Australia isn’t just for new cars. If you’re thinking about buying or financing a used car, a novated lease is a great alternative to consider.

Thousands of Maxxia customers have chosen a used car for their novated lease. Novated leasing could reduce your tax bill each year by making part or all deductions from your pre-tax salary, which potentially helps your money go further.

Why consider a used car for a novated lease?

Novated leasing a used car can be easy and hassle-free. If you know the make and model of the car you want to lease already, the Maxxia team can try to source it for you, which makes the novated leasing process simple. You also have the option of sourcing the car yourself from a dealership or private sale.

Cost-efficient

Generally, a cheaper car would result in lower lease payments. Depending on the vehicle’s value, the finance lease amount (excluding any add-ons and insurance) could also be up to $6,334 less than the vehicle purchase price paid by the financier, due to GST credits claimed by the financier.

Used electric cars can also enjoy novated leasing benefits. If you’re considering a novated lease for a used electric car, the car needs to be both first held and used after 1 July 2022 (among other requirements) to qualify for the Fed Gov EV Discount.

Budget-friendly payments

Novated leasing also allows you to bundle eligible car running costs into one convenient regular payment taken from your pay. Your bundled payments form your budget, which could cover:

• Fuel/Charging (including fuel cards)
• Registration
• Servicing
• Insurance
• Tyres
• Roadside assistance
• Cost of the car

Fringe Benefits Tax (FBT) exemptions

Novated leasing, whether for a new or used car, could be tax-effective.

Use the Maxxia novated lease calculator to quickly calculate the difference a used car novated lease could make to your pay, including your potential tax savings. Please note that the calculator produces an estimate only and we recommend that you obtain independent financial and taxation advice on how a novated lease could impact you prior to entering into a novated lease arrangement.

You could also be eligible to take out a novated lease on your existing car, unlocking any equity you have in it and allowing you to enjoy the potential tax benefits.

Flexibility in vehicle choice

Don’t want to wait months for a new car to be delivered? With used cars, you have the choice of numerous pre-loved cars, readily available. A novated lease for a used car can get you on the road sooner.

Eligibility criteria for novated leasing a used car

Employer requirements

Your employer needs to offer novated leasing as a workplace benefit. Some employers may have restrictions around whether used cars can be leased through their novated leasing program. Speak to your employer or HR department to find out how novated leasing works at your company.

Vehicle conditions

Generally, the car should be no older than 12 years old at the end of a novated lease agreement to be eligible. Exceptions may be made for prestige or collectible vehicles that retain their value over time. Talk to your novated leasing consultant to see if your vehicle fits under this exclusion.

Steps to get a novated lease used car

Research and selecting used cars

There are many avenues to finding a used car. Carsales and similar websites are popular for buying and selling second-hand cars. Alternatively, the Maxxia team can try and source a car for you through our nationwide dealership network.

Novated leasing application

To apply for a used car novated lease, you’ll need to speak to a Maxxia novated leasing consultant, who will put together an estimate for you based on your salary, chosen vehicle, average yearly kilometres and any optional insurances.

We're here to help you secure a used car novated lease

Novated leasing a used car is definitely possible, and a popular option for our customers. If you need a cheaper car but don’t have the cash upfront and want to avoid taking out a personal loan, a novated lease may be a great option for you.

Have more questions about used car novated leasing? Ready to apply? Submit an enquiry online and we’ll be in touch very soon!

_{The information provided is general information only. We recommend that you seek independent financial and taxation advice prior to entering into a novated lease arrangement.}

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