The first and most important thing you need to know is that a novated lease comes out of your pre-tax salary - something you can’t do with a standard car loan or when purchasing the car outright.

So essentially, you pay for your car and all of its running costs before you pay tax. This reduces your total annual income, and thereby allows you to save thousands in tax every single year.

It’s a game changer when weighing novated leases against other ways to get your next car.

You have to pay GST when you buy a car. We all know (and hate) that. But that’s not the case with a novated lease.

A novated lease allows you to save up to a staggering $6,334 on the GST component of the car's price.

Put simply, if the car you want is under $69,674 then you'll get it completely GST-free using a novated lease. And if the car you want is over that price, well then you're still saving over $6,000 that you wouldn't have otherwise. So this is a win-win situation for you.

But wait, there’s more…

As if saving over $6,000 on the GST of your vehicle wasn’t enough, you can also save the GST component on all of your car’s running costs.

That means you save 10% on fuel, servicing, roadside assistance, insurance, rego and even replacing your car’s tyres. You can see how quickly that all adds up. We even give you a fuel card that allows you to pay with no money out of pocket, which is hugely convenient.

And the cherry on top is that it’s all paid from your pre-tax income, so it helps reduce your tax bill further.

Impressed yet?

A novated lease with Leaselab doesn't restrict you. While we have preferred providers that we use for those who want us to handle everything, you're not obligated to use them.

Happy with your current insurer? Perfect, keep using them. Like the service garage you’ve always used? You can bring them over to your novated lease and include that too. Want to include fuel and roadside assistance, but nothing else? No problem at all.

We’re here to build you a custom novated lease that works for you and your life.

There’s nothing worse than the shock of getting hit by some big car expenses all at once. But that won’t happen with a novated lease with Leaselab, because we roll all of your costs into each of your pay cycles. So your expenses are balanced across the lifetime of your novated lease with us.

How do we manage that, you ask?

Before we send you a quote for your novated lease, we forecast your fuel usage and any other major running costs in order to calculate the average cost and spread it evenly. So for those of you who like to plan and budget, you’ll know exactly what your car will cost you out of your payslip each pay cycle. Simple, easy and predictable.

And if your usage ends up being lower than your payments, you just build up a surplus. But don’t worry - it’s still your money, so it will either be returned or used towards anything related to your car’s expenses.

A good novated lease provider - like the good folks here at Leaselab - have access to a national dealer network to providing preferential pricing (sometimes called fleet pricing).

All this means is that Leaselab make it a hassle free process to sourcing your dream car and getting the best price for you. And it’s yet another up-front saving on your next car, to add to the numerous GST savings and reduced tax bill.

Novated leases offer a lot of flexibility – both in terms of your car choice as well as your options at the end of a lease.

If you’d prefer a new car, you can access fleet pricing for the best possible deal.

Alternatively, you can purchase a used car and still qualify for a novated lease. Or you can even bring your existing car to the arrangement!

Just about anything is possible - just give our team a call and we can talk you through the options.

When your lease term finishes, you’ll be asked to pay something called a “residual”. This is simply the remaining payment left on the lease.

There’s a few different options for you on how to handle the residual:

• You can keep your payments at a similar amount, but upgrade and get yourself into a new car on a new novated lease; or
• You can keep your car and refinance your lease, treating the remaining residual amount as your new novated lease value and continuing to pay weekly installments from your pre-tax income; or
• You can pay the residual amount and own the car outright

Because car prices and depreciation are fairly predictable, with Leaselab your residual may be less than the value of your car at the end of the lease. And this is where you get one final benefit with a novated lease:

If you sell your car for more than the value of the residual, you get to pocket the difference tax free!

That alone could mean a tax-free windfall of thousands of dollars.

We also set all of our residual values in accordance with the ATO’s guidelines, so you can rest easy knowing that everything we do is based on government rules and regulations.