Novated leasing for used cars – how does it work?

There’s a lot of misconceptions about novated leasing. You may have heard that you need to drive a lot or be a high earner to benefit, or that novated leasing only applies to new cars.

Regardless of your driving habits or salary, you may be able to potentially save on tax through novated leasing. And let’s set the record straight about that last point – you can absolutely apply for a novated lease with a used vehicle! A new car doesn’t suit everyone’s financial situation, which is why used cars are incredibly popular – including with RemServ novated leasing customers.

What are the conditions for novated leasing a used car?

Firstly, speak with your employer and check their employee novated leasing policy, as some organisations will have restrictions on the types of vehicles employees can choose.

As a broader rule, a novated leased vehicle shouldn’t be more than 12 years old, be designed to carry over one tonne or have more than nine seats.

Do I need to find a used car myself?

No, that’s the beauty of RemServ’s service! If you know the car you want, our team can tap into our nationwide network of dealerships to source the vehicle. Otherwise, you are welcome to source an eligible car yourself through private sale.

You may also be able to lease your existing car, unlocking any equity you have in it while giving you the same potential tax benefits.

What is the benefit of leasing a used car?

Generally, a cheaper car will have lower lease repayments. Check out the RemServ novated leasing calculator and plug in the value of your second-hand car of choice to see your potential tax savings. (Please note that the novated lease calculator is an estimate only and does not take into account all your personal circumstances. You should seek independent financial and tax advice prior to making a decision regarding salary packaging and novated leasing.)

But it’s not just the financial side of novated leasing that you’ll love. It’s also a convenient way to finance a car, as all your running costs are bundled into regular payments. No more surprise insurance or rego bills in the mail!

If you’re ready to start your novated leasing journey, contact us today and speak to the experts at RemServ.

The advice in this article is general in nature and does not take into account your personal circumstances. Please seek financial advice before making any decisions.