If you’ve searched “how does a novated lease work?” you’re not alone, it’s one of the most common questions Aussies ask us when exploring car finance options.
The good news? A novated lease is actually one of the simplest and most tax-efficient ways to get into a new (or used) car. Here’s the clearest explanation you’ll find online.
What Is a Novated Lease? (Explained in 30 Seconds)
A novated lease is an arrangement between you, your employer and a leasing provider that lets you pay for your car using a combination of pre-tax and post-tax salary.
Your car expenses are bundled into one payment, including:
- Fuel or electricity
- Servicing and maintenance
- Registration
- Insurance
- Tyres
- Roadside assistance
It’s designed to make car ownership cheaper, simpler and more predictable.
How a Novated Lease Works: Step-by-Step
Step 1: Choose Your Car
You can choose new, used or demo and from any dealer or, allow SupaLease source the vehicle for you. Once you’ve found the car you like, SupaLease prepares a quote showing your pre-tax benefits and estimated fortnightly/monthly cost.
Step 2: Approval & Paperwork
Next, your employer signs a “novated deed” and the leasing provider arranges the finance. This step is straightforward, SupaLease manages everything for you.
Step 3: Drive Away & Pay Through Your Salary
Your lease payments and running costs come from your salary as a salary packaging arrangement, lowering your taxable income. This is where the savings happen.
No more paying for servicing, fuel, rego or tyres separately – it’s all included.
Step 4: Enjoy Predictable, All-In-One Car Costs
Your only job? Drive the car. Everything else like budgeting, invoices, servicing reminders is handled for you.
Step 5: End of Lease Options
When your lease ends, you can:
- Pay the residual and keep the car
- Refinance the residual
- Trade in and upgrade to a new car
Many people choose to upgrade every few years because the process is so smooth.
What’s Included in a Novated Lease?
One of the biggest benefits, and common search queries, is “what’s included in a novated lease?”
SupaLease management of all admin. This is why so many Aussies search choose novated leasing, because it removes the hassle of budgeting for unexpected bills.
Why First-Timers Love Novated Leasing
It’s one of the few car finance options that actually reduces your tax and simplifies your life. For drivers who value certainty, convenience and predictable costs, it’s hard to beat.
Ready to Get Started?
Get a personalised quote in minutes using our calculator
Arrange a quick, obligation free call with a SupaLease Specialist
