Novated Leasing FAQs

What is a Sale and Leaseback?

It’s how you unlock the benefits of a novated lease for your existing trusty ride. With a Sale and Leaseback, you can salary package your existing vehicle, unlocking the equity tucked away in it, and embracing all the perks of a novated lease. It’s like giving your car ownership experience an exciting upgrade!

I’ve paid interest already on my car, why would I do it again?

When it comes to a Sale and Leaseback, interest is just one aspect to consider. The biggest benefit is having the ability to unlock the equity hiding in your asset. Giving you access to cash you could use for whatever your heart desires. That’s not all; you might also open doors to pre-tax and GST savings on your car’s running costs.


But wait, there’s more! Say hello to convenience, as we bundle everything into one seamless, regular payment. With Clear Lease, it’s all about making your life easier and your car ownership more rewarding.

What if my interest rate is higher?

A Sale and Lease back is no ordinary car loan. Here’s why: it lets you repay several years of car finance and other expenses using those valuable pre-tax dollars. Plus, there’s the potential for significant GST savings on most of your running costs.


Curious about how much you could save? Talk to one of our crew to break down your savings, we’re rewriting the rules of car finance to put more money back in your pocket.

If I already own my car, why would I consider a balloon payment?

If I already own my car, why would I consider a balloon payment?

Yes, this is a crucial factor to ponder, but the Clear Lease Sale and Lease Back offers so much more to consider. Picture this:

  1. Set-and-Forget Convenience: With a Sale and Leaseback, you can enjoy the bliss of having five years’ worth of running costs all neatly pre-budgeted for. No more unexpected surprises; it’s all part of the package.
  2. Tax-Saving Potential: We’re all about those potential savings. Imagine the benefits that roll in when you pay for your car with your pre-tax salary. It’s a game-changer.
  3. End-of-Lease Options: When your lease journey comes to a close, we won’t leave you hanging. We’ll reach out to explore your options. Fancy upgrading to a shiny new ride? Or maybe you’re keen on refinancing any residual payment? It’s all on the table.
  4. Access your equity: If you have equity in your car, you can get access to that cash to use however you please.

With Clear Lease, it’s not just about the basics; it’s about transforming your car ownership experience into something extraordinary.

Can I still have a Sale and Leaseback if I still have finance on my current vehicle?

The remaining balance on your current loan will be paid out by the financier. Then, your vehicle is refinanced through our Sale and Leaseback. Brace yourself for the added perks, including the tax benefits and the sheer convenience of salary packaging.”

What do FBT and ECM mean?

Let’s break it down: Fringe Benefits Tax (FBT) is the tax applied to benefits received from your employer that don’t come in the form of cold, hard cash salary or wages. A novated lease falls into this category as it’s a benefit separate from your cash salary or wages. As of April 1st, 2019, the FBT rate stands at 47%.

Now, here’s where ECM, or the ‘Employee-Contribution Method’, comes into play. ECM is a standard calculation method for novated leases designed to offset any potential FBT you might owe on your novated lease. How does it work? Well, by making both after-tax and pre-tax payments, you can effectively lower the taxable value of your car. This smart move minimises the risk of facing an FBT liability when the FBT year ends on March 31st. It’s all about keeping your financials in check and your novated lease journey smooth and stress-free with Clear Lease.

Your dedicated consultant can talk you through FBT and ECM as it’s often best to talk to an expert.