Setting up a novated car lease is very simple. The basic requirements are a current driver's licence, a current pay slip from your employer, and a clear credit reference (CRAA).

The Australian Tax Office dictates the types of vehicles that can be leased through a novated car lease agreement. Essentially, most cars, wagons, coupes and four-wheel drives are eligible. For example a Toyota Land Cruiser is not available. In addition, boats, caravans, trucks and other commercial vehicles including some utilities are not acceptable. Some employers may also have their own restrictions on vehicle choices.

There is no distinction between private or business use for novated car lease. In general, novated car leases are better suited for individuals with mainly private usage needs. Why is this? What about if the company is paying all costs as part of the salary package?

A vehicle under a novated car lease is regarded as a private car therefore the lease holder determines who can drive the vehicle. Please ensure you are aware of the insurance implications and are covered when family members or friends are driving the vehicle.

LeasePLUS has an extensive network of over 200 dealers across Australia. The purchasing power generated from this network helps to ensure that the price of your next new vehicle is the most competitive in Australia.