Hi! How can we help You?

Novated Lease Used Car: Drive Smart, Save Big


Unlock the full potential of cost savings with a novated lease for your next used car.

Are you looking for a cost-effective car leasing option? Consider a novated lease used car. Opting for a pre-owned vehicle lease can offer significant financial benefits and help you save big. Novated Leasing Online is here to guide you through the process and provide you with the best budget-friendly car finance options.

Novated Lease Used Car Explained

A novated lease used car is an advantageous arrangement that allows individuals to lease a pre-owned vehicle through a specialised agreement with their employer. This option provides the benefits of a novated lease while enabling individuals to drive a quality used car. One of the key advantages of opting for a novated lease used car is the potential for substantial cost savings compared to purchasing a new vehicle outright.

Features and Benefits of Choosing a Second Hand Car for Novated Leasing

Opting for a used car with a novated lease offers several advantages:

Cost-Effectiveness & Tax Savings

Choosing a used car for your novated lease can result in lower regular payments as compared to leasing a new car. This allows you to save more and allocate your funds wisely. Like novated leases for new cars, novated leases for used cars offer tax benefits. By salary packaging a portion of your gross salary towards your lease, you can reduce your taxable income and potentially pay less income tax throughout the year.

Bundled Expenses

Novated leases for used cars allow you to bundle your vehicle’s running costs, including fuel, insurance, servicing, and registration fees, into one convenient package. This simplifies budgeting and provides a hassle-free experience.


Novated leases for used cars provide flexibility at the end of the lease term. You have the option to upgrade to another car, extend your current lease, or make a final balloon payment to take full ownership of the vehicle.

Car Loan vs. Novated Leasing A Used Car

A car loan and novated leasing a used car are both methods of financing a vehicle, but they differ in their structure and benefits.

A car loan involves borrowing money from a lender to purchase a vehicle outright, from a dealer or a private sale. The borrower is responsible for making regular loan repayments, including principal and interest, until the loan is fully paid off. With a car loan, the borrower owns the vehicle and bears all associated costs, such as maintenance, insurance, and depreciation.

On the other hand, novated leasing a used car is a financial arrangement where an individual leases a pre-owned vehicle through their employer. The lease payments are deducted from the individual’s pre-tax salary, which can result in tax savings. Additionally, the employer takes on the responsibility of managing certain costs, such as insurance and maintenance, making novated leasing a convenient option for some individuals.

How It Works

Acquiring a novated lease used car involves the following steps:

  1. Check Eligibility: Confirm with your employer that you are eligible to salary package for a novated lease.
  2. Calculate Costs: Estimate your annual kilometres and gross salary to understand your financial standing and determine the affordability of the lease.
  3. Choose a Vehicle: Select a used car that fits your needs and budget. You can find one through a dealership or privately.
  4. Request a Quote: Contact Novated Leasing Online for a comprehensive novated lease quote based on the chosen vehicle.
  5. Review Your Quote: Your Finance Consultant will provide a detailed quote, highlighting the cost savings and salary impacts associated with the novated lease.
  6. Proceed with Application: Once you’re ready, sign the quote with your employer and complete a quick finance application to initiate the lease process.
  7. Order Your Car: Upon finance approval, Novated Leasing Online will order your chosen used car from the dealer and finalise all necessary paperwork.
  8. Settle Finance: Your Finance Consultant will draw up finance contracts for signing by you and your employer to finalise the lease agreement.
  9. Collect Your Car: Once the settlement is complete, you can collect your new-to-you used car from the dealer and start enjoying your cost-effective lease.
  10. Receive Your Drivers Pack: Within seven working days, you will receive your drivers pack, which includes all necessary documents and a fuel card.

At Novated Leasing Online, we strive to make the process of acquiring a novated lease used car smooth and efficient, ensuring you get behind the wheel of your new car in no time.

Novated Lease Used Car Calculator

To get a better understanding of the financial aspects of a novated lease used car, you can use our novated leasing calculator. Simply input the necessary information, such as the vehicle’s purchase price, lease term, distance travelled per year, and your annual salary.

Our calculator provides you with an estimate of the monthly payments, running costs, and the overall savings you can expect with a novated lease. These running costs give you an idea of the financial benefits of opting for a novated lease. It can also guide you in making an informed decision about your car financing options.

[Link to Calculator]

Customer Testimonials

Don’t just take our word for it. Here’s what our satisfied customers have to say about their experience with Novated Leasing Online:

“Very happy with my new car. Everything about the process of leasing a car with Fleet Network, from the first contact to the delivery of the vehicle and throughout the term of the lease, is outstanding. Communication, whether directly by phone or email and text messaging is prompt, efficient, and very clear, making the lease process as simple as possible.” – Mark Dorrington, WA DFES

“Would highly recommend! The Novated Leasing Online team was fantastic to deal with and found me the right package. Would highly recommend getting in contact with the team to see what they can do for you!” – Brett Mitchell, WA Education

“Out with the old, in with the new! I decided to upgrade to a new Hyundai i30 Active from an older model. I drove in with my old car and drove out with the new – it couldn’t have been easier! This is my second car with the wonderful Novated Leasing Online team.”

Frequently Asked Questions

Here are answers to some common questions about novated lease used cars:

Can I use novated lease for a used car?

Yes, you can lease a pre-owned vehicle through a novated lease arrangement. The vehicle should be less than 12 years old at the end of the lease term.

How old can a car be on a novated lease?

In Australia, a car can be up to 15 years old at the end of the lease term for a novated lease. This means that the vehicle can be older when the lease starts, as long as it does not exceed the 15-year limit by the end of the lease term.

Can you salary sacrifice a 2nd hand car?

In Australia, it is possible to salary sacrifice a second-hand car through a novated lease arrangement. A novated lease is essentially a three-way agreement between an employer, employee, and a finance company, where the finance company purchases the car on behalf of the employee and the employer deducts the lease payments from the employee’s pre-tax salary.

However, it is important to note that not all employers offer novated leases as a salary sacrifice option, so it is advisable to check with your employer or HR department to see if this option is available to you. Additionally, there may be certain eligibility criteria or restrictions imposed by the finance company, so it is recommended to seek professional advice before entering into a novated lease agreement.

Can I trade in my old car for a novated lease?

Yes, you may be able to trade in your old car as a part of a novated lease arrangement. However, it would depend on the specific terms and conditions of the lease agreement, as well as the policies of the leasing company or provider. It is recommended to speak with a financial advisor or leasing specialist to explore your options and determine the best course of action for your individual situation.

Do you get car options when novated leasing a used car?

Yes, typically you have options when novated leasing a used car. These options may include choosing the make and model of the vehicle, selecting features and upgrades, deciding on the lease term, and determining the residual value of the car at the end of the lease period.

Do I need to arrange a mechanical inspection for the used car?

It is recommended to arrange a mechanical inspection for a used car before finalising the novated lease agreement. This ensures that the vehicle is in good condition and meets the necessary safety standards.

Save on Your Novated Lease Used Car

Ready to experience the benefits of novated leasing?

Take the first step towards driving your dream car while enjoying significant savings. Get in touch with our expert team to discuss your novated leasing options and start your journey towards car ownership made easy.

[CTA – Contact Us or Learn More]