Can I Get a Novated Lease with a Used Car?

If a new car isn’t in your budget, does this mean that novated leasing is out of the question? Definitely not! Thousands of Maxxia customers have chosen a used car for their novated lease. Novated leasing also has the potential to save you money on tax every year by making repayments with pre-tax and post-tax dollars, which could help make your money go further.

How is novated leasing a used car different to a new car?

Generally, a car shouldn’t be more than 12 years old to qualify for a novated lease  (sorry, 1967 Chevy Impala fans). 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. You also have the option of sourcing the car yourself from a dealership or private sale. 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.

Because novated leasing is an agreement with your employer, any type of car you lease will need to follow your employer’s novated leasing policy. Don’t forget to check in with your manager or HR department before deciding on the car you want.

What are the benefits of novated leasing a used car?

Generally, a cheaper car will have lower lease repayments. Use the Maxxia novated lease calculator to quickly calculate the potential difference a novated lease could make to your pay, including an estimation of potential tax savings.  (Please note that the novated lease calculator is an estimate only and does not take into account all your personal circumstances. You should seek independent financial and tax advice prior to making a decision regarding salary packaging and novated leasing.)

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

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

In conclusion, 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.

Learn more about the flexibility and benefits of a novated lease through Maxxia. Or get in touch today.

The advice in this article is general in nature and does not take into account your personal circumstances. Please seek financial advice before making any decisions.

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