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What is a Novated Lease?

A novated lease is a finance arrangement used with salary packaging. It simply means that your employer pays for your car lease including your car running costs out of your salary package through a combination of pre-tax and post-tax salary deductions.

A novated lease allows you to drive the Toyota of your choice to suit your lifestyle. And you could save thousands on the purchase price and running costs of a new or used Toyota.

It also offers the convenience of cashless motoring and access to Toyota Finance discount programs, so you’ll receive great deals on finance, fuel, maintenance and repairs.

How Does It Work?

Lease set up

The employee chooses a Toyota and an agreement is set up between the employee, employer and Toyota Finance.

Payments made

The employer makes payments to Toyota Finance from the employee's salary.

Employee Saves

The employees get the Toyota they want, saving on tax and running costs including the car price, fuel, maintenance and tyre purchases.

Cashless Motoring

The employee enjoys the convenience of cashless motoring.

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What Is Included?

There are a number of upfront and running costs you can include in a novated lease such as:

Upfront costs:

·         Car price and accessories

·         Dealer delivery charges

·         First year registration and CTP insurance

·         Purchase stamp duty

·         Novated lease establishment fee

·         Personal Property Security registration fee

·         Luxury Car Tax (if applicable)

 

Running costs:

·         Mechanical repairs, maintenance and servicing

·         Replacement tyres

·         Fuel

·         Roadside assistance

·         Comprehensive insurance

·         Registration/CTP renewals

·         Tolls

·         Fines

·         Insurance excess

Novated Lease Protection Insurance

Toyota Finance also offers novated lease protection insurance as an optional extra. That way, if you aren’t able to work, your lease will continue to be paid for up to six months, with a hand-back option if you don’t gain employment within that time.

Want to see a breakdown of all the costs involved, so you can see at a glance how much you could save when compared with a standard car loan?

Use the Toyota calculator HERE.

Novated Lease Explained

Novated Lease Explained

This information provided by Toyota Finance, a division of Toyota Finance Australia Limited ABN 48 002 435 181, Australian Credit Licence 392536 is of a general nature and for information only. Nothing on this website constitutes or should be considered to constitute legal, taxation or financial advice. Before making a decision about any of the products and services featured on this website, you should consult with your own independent legal, taxation and financial advisors, who can advise you about your personal circumstances.