Home Car Loans Novated Car Leasing by Salary Sacrifice

Novated Car Leasing - Salary Sacrifice

Jade Finance arranges Novated Car Leasing with Salary Sacrificing for businesses that choose to provide a car for an employee for use in their work and both employer and employee agree to deduct the costs associated with the vehicle from the employee’s salary package.

  • Low car loan interest rates
  • Credit score not impacted
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Key Features

If this type of car financing is of interest to you, your Jade Finance consultant can provide more specific details on key aspects and explain how it would work in your situation. The differences between an employee having use of a company car and a Novated Car Lease option can also be clarified.

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Personal Loan Consultant

Employee chooses the car and works with their Jade Finance consultant to secure a car leasing contract. Employee ‘novates’ the car lease contract to the employer.

Employer Covers Expenses

Employer pays the monthly lease payment and other car operating expenses including rego, insurance, servicing, repairs, petrol etc.

Expenses Taken from Salary

Expenses are deducted from the employee’s pre-tax salary. The employee gives up or sacrifices that amount of wages/income in return for having the car of their choice, fully maintained by their employer.

Fixed Terms

Lease payments are fixed, lease term is fixed.

Flexible Loan Terms

Lease terms from 12 months/1 year to 84 months/7 years. We will negotiate the terms to suit your requirements and vehicle.

Residual May Apply

A residual may be included and the amount is based on ATO guidelines.

Employer Tax Benefits

Employer receives the relevant tax deductions, pays and claims GST as applicable and addresses any aspects of FBT in accordance with ATO guidelines.

Employee Tax Benefits

Employee reduces taxable income and hence reduces tax payable and enjoys use of a car without having to pay for the expenses of buying or running the vehicle.

Ownership Transfer

On finalising all lease payments and the residual, the lender transfers ownership of the car to the employee.

Full and Part Time Employees

Suitable for full-time and part-time employees.

New and Used Cars

Can be used for new and used car purchases.

By definition, a novated lease means that one obligation is novated or replaced by another obligation or another party. The obligation of the car lease is novated from employee to employer. Novated Car Leasing with Salary Sacrificing involves a financial agreement between employee and employer in conjunction with the lender, in regard to a car purchase.

For more information if you qualify for a Salary Sacrifice Package visit 

Most banks and lenders offer Novated Car Lease as part of their commercial financing options. But only experienced brokers like Jade Finance can source you a Novated Lease quote after considering the offers from a vast selection of banks and lenders. We’re not limited to just one interest rate or one lease structure.

Jade Finance presents you with the best Novated Car Lease deal that the market has to offer, structured to suit your individual requirements and based on the cheapest interest rates.

Speak with a Jade Finance Consultant to discuss Novated Car Leasing with Salary Sacrificing for your business vehicle purchase. Call 1300 000 008.

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THE COMPARISON RATE IS CALCULATED ON A SECURED LOAN OF $30,000 FIXED FOR A TERM OF 5 YEARS, NEW GOODS, EFFECTIVE 05/12/2024 AND SUBJECT TO CHANGE. WARNING: THE COMPARISON RATE IS TRUE ONLY FOR THE EXAMPLES GIVEN AND MAY NOT INCLUDE ALL FEES AND CHARGES. DIFFERENT TERMS, FEES OR OTHER LOAN AMOUNTS MAY RESULT IN A DIFFERENT COMPARISON RATE.

We work harder to secure the best rates.

General Car Loans FAQs

  • We finance all makes and models, new, used and classic.

    Here are only some of the major car brands we can help finance you so you can drive away in your dream car.

  • In general, finance is provided for all types of cars. Exceptions may arise with say vintage and collectable cars, racing cars and other such categories. But for the majority of commonly purchased cars for most applicants, Jade can source you a cheap car loan. The categories of cars we finance include all types of passenger cars such as sedans, SUVs, hatches, convertibles, sports cars, wagons, multiple people vehicles, electric vehicles, hybrids, diesel and petrol powered. In the business vehicle category, we finance all leading brands of utes, SUVs, cab chassis, light commercial vehicles, vans and small work vehicles which don’t come under our truck finance sector. Small and large cars can be financed, there are no general restrictions in that regard. Individual lenders may vary loan offers for new versus used cars.

  • Yes. Finance is available for both personal car loans and business vehicle finance for new and used vehicles. Used vehicles may include: passenger cars, sedans, hatch backs, convertibles, utes, SUVs, 4WDs, wagons, MPVs, light commercial vans, cab chassis utes and many other types of vehicles. In all cases, loans on used cars are subject to individual lender requirements. The age and condition of a used vehicle is taken into consideration by our lenders when assessing an application and working out the offer they will make on a loan to the applicant. In some cases, a lender may request a deposit be paid in order to reduce the overall loan amount if they consider the value of the motor vehicle relative to the loan amount being requested does not meet their criteria.

  • Not necessarily but maybe. There is a difference between any deposit that the car seller or dealer may ask you to pay and a deposit that the lender may request. When you commit to a car purchase and sign a contract with say a car dealer, they usually ask you to pay some amount on the spot to confirm the deal. The exact amount requested will vary. This is usually referred to as a holding deposit and can be refunded back to the buyer if their car loan finance company pays the 100% purchase price of the vehicle. Lenders only usually request a deposit to be paid when the applicant or the vehicle being purchased does not meet their guidelines. No deposit vehicle loans can be sourced. That means you request a loan for 100% of the purchase price of the car including all dealer delivery etc charges. In many cases, especially with new vehicles and for business applicants, this is generally achievable. With Low Docs and No Docs business vehicle loans, personal loans with low credit profile and with Unsecured Personal Loans, the lender will often request a deposit be paid to lower the loan amount being requested. It may also be requested in some cases with some used cars, depending on age and condition.

  • In order to qualify for business vehicle finance, the business must meet the criteria for a business loan and the vehicle being purchased must be primarily for use in that business. If a vehicle is being purchased by an individual primarily for their own personal use, then a personal car loan would be the applicable loan type. The structure of business and personal car loans are essentially similar in that the lender uses the vehicle, in some aspect, as security against the loan and the borrower repays the loan in monthly instalments for a fixed number of years, known as the loan term. Business loans differ in that they do have the option for a balloon or residual. This is a portion of the price of the car which is set aside from the repayments to be paid as a lump sum at the end of the loan term. There are a number of business car finance products which have varying features and benefits in regard to tax and accounting methods. In order to qualify for business finance, an applicant must have a current ABN and some level of financial documentation in regard to their business set-up.

  • Yes, it is possible, but other financial documentation is also required. A current ABN and ID is the minimum requirements for business car loans. From that minimum level of requirements, the more financial information about your business that you provide and the better the quality of that information in regard to your credit profile, the more favourable the interest rate and loan conditions you can expect to be offered. Being registered for GST and having BAS statements is highly preferred. For businesses with little or no documentation, a specialist service to source Low Docs, No Docs and ABN only car finance is available. This type of finance is usually not offered by the major banks but non-bank lenders are more favourable to offering finance to this type of business.

  • There are a number of ways to start the car application process. You can either apply online or over the phone and talk to one of our experienced Car Loan Brokers. Licensed credit providers with ASIC must adhere to the Responsible Lending Guidelines in relation to consumer credit and a set process is laid out to follow. You will need a range of documents to complete your application. These vary according to the type of car loan – personal or business – that you are applying for. For a personal car loan you will need ID, employment status and history record, proof of income such as payslips, a list of your income and expenses each week/month, details of any assets, details of any debts such as credit cards and other loans. For business vehicle finance, you will need a current ABN, ID and financial details around your business activities. The quantity and quality of the financial documents provided will determine if you meet the criteria for a fully documented (standard) loan or you require a Low Docs or No Docs loan.

  • Car loans and driver licences are separate issues and not connected except that a driver licence can be used as one form of ID in applying for a car loan. Driving licences come under state regulations and the age for getting a licence may vary across the jurisdictions. In most states and territories a person can get a driver licence under the age of 18. Under the Consumer Credit Laws in Australia, you must be over 18 in order to apply for and be offered a consumer loan. So just because you have a driver licence doesn’t mean you can apply for a vehicle loan. On the reverse, you don’t need to have a driving licence in order to apply for a car loan. Someone without a driving licence can be offered a car loan for a car which is obviously to be driven by another person.