The key benefit of a novated lease is that the payments are paid with your pre-tax income. This setup will generally result in significant tax savings and offer more flexibility, outweighing the interest paid on the lease. A traditional car loan is paid with your income after tax.

Choose a ‘basic’ novated lease and you will only need to cover the purchase price of your car. Or, opt for a ‘fully covered’ novated lease and your payment can cover the ongoing costs including, petrol or recharging, registration, insurance, tyres, servicing and more. Leaselab is more than happy to assist with a plan that best suits your financial situation and goals.

The residual value, or balloon payment, is the sum you will need to pay at the end of your novated lease term if you wish to own your vehicle at the end of your lease. This amount is set by the ATO (Australian Tax Office) and reflects the likely market value of your car.