Novated Leasing – Used Cars

If you’re looking for a fast and easy used car contract that puts you in the driver’s seat, you may want to consider choosing a novated lease.

A novated lease is a salary packaging arrangement between you, your employer and Clear Lease. The aim is to establish a cost-effective offering that comes with loads of tax benefits and advantages, which add up to give you big savings!

People often have many misconceptions about what a novated lease means, and they can end up missing out on all of the amazing benefits that novated leasing offers. Below, we’ll attempt to dispense with some of these myths and illustrate what it is that makes novated leasing one of the best ways of getting behind the wheel of your dream car (without having to win the lotto).

Benefits of Leasing a Used Car

When people are in the market for used cars, the option of choosing a novated lease is often overlooked. We believe that novated leasing can be one of the best and most affordable ways to drive a used car.

Not only is buying a used car cheaper than buying new, a novated lease allows you to spread the costs of vehicle ownership evenly and annually so that you can easily manage your finances.

Save on tax

Additionally, when you take out a novated lease on a used car, your repayments are deducted from your pre-tax salary. As a result, you’ll be left with a lower taxable income, which can save you a ton of cash.

These savings are taken further since novated leasers do not need to worry about paying any GST on the purchase price of the car, saving thousands before you’re even out of the gate.

Simple and stress-free financing

Through novated leasing, you also don’t need to become concerned with payment dates and keeping yourself on track. This is because your employer will take care of the regular payments – you’ll never have to pay any late payment fees.

In fact, the whole process is extremely hands-off and stress-free. That said, you’ll be in control of your novated leasing plan, and you’ll always know exactly what you’re paying for and why. At Clear Lease, we live up to our name – making leasing as transparent and straightforward as possible.

All expenses can be covered

Another massive benefit of novated leasing is that you won’t have to worry about maintenance costs – which can be an enormous weight off your mind, particularly if you’re buying an older-model vehicle. The majority of expenses and running costs can be covered in the regular repayments, meaning shouldn’t have to cough up loads of cash for a repair unless something really unforeseeable crops up.

Insurance premiums, fuel, servicing, maintenance, rego, and roadside assistance are just a few examples of the expenses that can be covered under a novated lease. You’ll have access to Clear Lease’s impressive discounts that we’ve negotiated with our fuel and maintenance partners.

Finally, for those who want a used car on a budget, another advantage to choosing a novated lease is that no upfront deposit is required. This is different to many other buying and lease models, which typically demand a hefty upfront cost as down payment for the car.

How does a novated lease work?

Simply put, a novated lease is a three-way arrangement between you, your employer and Clear Lease. A novated lease aims to get you on the road in the car of your dreams – for considerably less than conventional finance arrangements.

When you buy a used car through a novated lease, all of the total running costs of the vehicle – rather than just the purchase price – can be budgeted into your repayment. Factors such as maintenance costs, repairs, and the vehicle’s value are all combined and deducted automatically from your usual weekly, fortnightly or monthly pay.

Every pay cycle, your employer will deduct a fixed amount from your pre-tax salary. This will go towards the cost of the used car, as well as cover the budgeted insurance and maintenance expenses that you decide to include in your contract.

Drivers should note that all novated car loans are worked out on a case-by-case basis, using a novated lease calculator. The calculator takes a range of factors into account, including the vehicle’s balloon size (outlined by the ATO), your estimated annual kilometres, the value of the car and of course the loan term you choose ie. 2,3,4 or 5 year contract.

At the end of the lease, you’ll have a couple of different options. Firstly, you can pay out he balloon payment and purchase the car you’ve been leasing. Alternatively, you can look to upgrade your vehicle or refinance the balloon and establish a new term of your novated lease. Whatever you choose to do, Clear Lease will be there to help you every step of the way.


One of the most common misconceptions about novated leasing is that it’s only an option if the vehicle is new. In reality, it is a tried-and-tested way of affordably getting behind the wheel of a top-range used car for less .

More and more Aussies are waking up to the idea of novated leasing a used car rather than buying one through a chattel mortgage or regular lease.

This is mainly due to the financial and tax advantages – and an increase in security and peace of mind thanks to Clear Lease managing all the accounts so you’re never left short. Plus you get benefit of roadside assistance and fuel discounts. Novated leasing is also super easy, and can remove nearly all of the usual stresses that drivers experience.

Novated leases aren’t just great for employees. Employers can also see some big benefits by signing up to a novated lease scheme, including the removal of company vehicles from their balance sheet and greater staff satisfaction.