Steps to getting a car on a novated lease

The novated lease can seem a little complex and overwhelming at first, even if you’re excited about the broad range of advantages. But don’t stress as we’ve put together the simple steps to getting a novated lease car package, from research to renewal. And it might seem like a lot of steps, however each one is short and simple and, as you’ll see, has very little for you to do. We do most of the heavy lifting for you.

Step 1: Calculate your savings and receive a quote

Once you’ve done your due diligence and decided that a novated lease is right for you, the first step is to get an obligation-free quote. Simply calculate your savings using our novated lease calculator, and once submitted our team will contact you with your personalised leasing quote.

You only need to provide basic details at this stage, such as the type of car you want, how much you think you’ll use the car, some salary information, etc. If you haven’t picked your car, we’ll be able to help with that and offer independent, knowledgeable advice.

Alternatively, you can also give us a call on 1300 888 594 and do it over the phone. It should only take 10-15 minutes and we’ll guide you through the whole thing.

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Step 2: Review your quote

If you submit your quote online, someone will be in touch with you within one business day to discuss your quote request.

Our quotes are easy to understand and provide total transparency on how everything is calculated - so there’s no hidden costs for you to worry about. But don’t forget to ask lots of questions if there’s anything you’re not sure about. We’re here to help you.

At this point, it’s a good idea to chat with your employer and check if they offer novated leasing (and if not, check if they’d be willing to). Our simple employer guide gives them everything they need, or if you’d prefer you can suggest Leaselab to your employer and we can share our knowledge and guide them through our simple setup process.

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Step 3: Obtain finance approval

If you’d like to go ahead with your quote, you’ll complete a finance pre-approval application and provide some key documents. All of this is done with our easy-to-use digital online application form. We’ll then work with you and the financier to get you approved to purchase the vehicle. We always aim to get the approval done as quickly as possible - and it’s usually a case of hours, rather than days or weeks.

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Step 4: Reserve and order your vehicle

Once your finance is approved, we’ll work with our dealer networks to find the car you’re after at the best possible price. We’ll get it ordered for you and lock in a pick-up date.

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Step 5: Signing your lease agreement

There’ll be some paperwork for you and your employer to sign in order to get things set up so that the financier gives the final green light to pay for your car.

For you, it’s fairly standard terms - most importantly the authorisation for your employer to make the car payments out of your salary as part of your salary sacrifice arrangement. Your employer signs that too, along with a direct debit agreement (which will be short and similar to the standard terms for direct debit).

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Step 6: Finalising your lease and the delivery of your vehicle

Once all the paperwork has been signed, we’ll take care of the settlement process and tell you when, where and how to pick up your new car. This is what we live for. We’re all giddy just thinking about it!

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Step 7: Leaselab welcome pack

You’ll get an email from us confirming that you’ve been onboarded on our platform and that everything has been approved.

Your employer will also receive an email detailing the payment amounts they need to apply to your pay cycle. From here, it’s really set and forget for them.

A short time later you’ll receive a welcome kit from the wonderful team at Leaselab, which includes your fuel card (if you're getting a petrol car) and your service and maintenance card.

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Step 8: During your lease

And you’re off! Windows down. Music up. The excitement of seeing your new shiny and polished car, gleaming in the sunlight as you drive it home. And all the while knowing that you’ll be paying less tax this year. This is a good day.

Throughout your lease, you’ll have special Leaselab cards to use to pay for fuel and streamline servicing. But if for whatever reason you don't use those cards to pay, you can simply login to your Leaselab client portal to submit your receipts for reimbursement. From there you will also be able to keep an eye on your account balances and more!

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Step 9: At the end of your lease

When you’re a few months out from the end of your lease, we’ll be in touch to chat you through your various options. That way, you’ll have time to think about what you’d like to do.

What option you decide on really depends on your individual circumstances. However, novated leases are designed to put you in the best possible financial position - not just in terms of the thousands you can save in tax each year, but also with your car and its value at the end of your lease.

You might choose to:

Upgrade your car.
Get a new car with a new lease and pay around the same amount. If this suits you, you can sell your current car, pay off the remaining residual fee and pocket the difference for another windfall.
Keep your car and carry on.
If you'd like to keep your car but can’t afford to pay the residual at that time, don’t worry. You can enter into a new novated lease by financing the residual. This will cost less than the original one because you will be financing a much smaller amount this time, rather than the original purchase price of the car.
Keep your car and finish.
You’d simply pay off the residual and you’re done. You could even sell your car and pocket the difference between the residual and your sale price tax-free!

Once you’ve decided, a good novated lease provider (no need to look any further than Leaselab) will handle everything for you, whatever you choose to do.

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The bottom line: How a novated lease stacks up

All in all, a novated lease is a simple process to set up, and almost certainly the most hassle-free way to have a car if you choose to include all of your running costs in your package.

If you buy your car outright or choose to go with a standard car loan, other than the higher costs, there’s a lot more administration and unexpected outlay involved.

Plus, it will also come out of your post-tax income, meaning there’s no tax savings.

And really that’s the clincher: tax savings on a novated lease can be in the tens of thousands of dollars - especially over the course of your lease term. But don’t take our word for it. Use the novated lease calculator and see for yourself!