Used cars and novated leases:
your questions answered
Yes, you can get a novated lease on a used car. Used and second-hand cars can be novated the same way as new ones, as long as the vehicle meets the finance providers age and condition criteria, and you still receive the pre-tax and GST savings. AANT Salary Packaging is the Northern Territory's local novated leasing provider and works with Territorians to novate both new and used vehicles.
If you have found a used car you like, the AANT team can quickly tell you whether it qualifies.
What you need to know
- Can you get a novated lease on a used car?
A novated lease lets you pay for your vehicle and its running costs from your pre-tax salary, which can reduce your taxable income and lower the overall cost. This applies to eligible used cars just as it does to new ones. The main thing to check is eligibility, which comes down to the vehicle's age and condition.
- Is there an age limit on a used car for a novated lease?
Most finance providers set a maximum age the car can reach by the end of the lease, rather than at the start.
AANT can check a specific vehicle for you.
Eligibility varies, but most used cars will need to:- Be under a certain age at the end of the lease (between 12 and 15 years)
- Be in good condition
- Be roadworthy and registered
- Are the tax benefits the same on a used car?
The savings come from paying with pre-tax income and from GST credits on the purchase price and running costs. Those mechanics do not change because the car is used.
- Do you still save money novating a used car?
A used car can be a practical way to get into a novated lease at a lower weekly cost, while still capturing the tax and GST benefits. The AANT calculator can give you an estimate, and the team can prepare a personalised quote for a specific used vehicle.
- Can I novate a used car I already own?
Yes, through a sale and leaseback, where your existing car is sold into the novated lease. The AANT team can talk you through whether your car qualifies.
- How do I find out if a used car qualifies?
Send through the car's year, make, model and price, and AANT can confirm eligibility and prepare an estimate. If it qualifies, the team handles the rest, from paperwork to handover.
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What’s the process?
Getting started is straightforward:
- Find your vehicle
Choose a used car from a dealer or private seller.
- Contact AANT Salary Packaging
We’ll liaise with the seller and confirm the vehicle meets eligibility criteria.
- We handle the paperwork
Our team will manage the contracts, payment and handover. You won’t need to chase forms or approvals.
- Drive away
Once it’s all set, you’re good to go.
What’s the best option for you?
That depends on your needs.
If you want the latest tech and fewer maintenance worries, a new car may suit you better.
If budget is your focus, a quality used car could deliver better value.
