A novated lease is a tax effective way to lease vehicles by salary sacrificing and our expert consultants at Pacific Auto Finance can help you find the right novated lease for you.

Put simply, a novated lease is a three-way agreement between an employer, employee and a lease company. The employee leases a vehicle from the lease company, and the employee takes on the responsibilities and obligations of the lease. Usually the employer will make repayments on the vehicle out of the employees’ pre-taxed income.

The business essentially leases the vehicle on behalf of the employee. This means responsibility lies with the employer to ensure that all repayments are met on the loan. If the employee ceases to be employed with the company or if the lease agreement term ends, the employee retains the vehicle. However, all of the obligations previously held by the employer become the responsibility of the employee.

Novated lease features include:

  • Ability to cost effectively package a vehicle
  • Choice of vehicle
  • Terms range from 12 to 60 months
  • Tax savings as repayments are deducted pre-tax
  • Novated Leasing rates are fixed for the term
  • Novated Leasing is totally portable to next employer


For more information on the differences, and benefits of the different options available to you, contact Pacific Auto Finance today.