Used cars and novated leases:
your questions answered
Novated leases aren’t limited to new cars. Used cars can also qualify, depending on the vehicle’s condition, age, and the provider’s criteria.
How does a novated lease work with a used car?
Just like with a new car, you can finance a used car through a novated lease using a mix of pre-tax and post-tax salary deductions.
This setup can reduce your taxable income and help you save on fuel, rego, insurance and servicing.
The key difference is eligibility. Finance providers have minimum finance amounts and will only approve cars that are under a certain age at the end of the lease.
What you need to know
- What kind of used cars are eligible?
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
AANT Salary Packaging will check these details before approving your lease.
- Are the tax benefits the same?
Yes. You’ll still receive the same structure of pre-tax and post-tax salary deductions. If you choose an eligible electric vehicle, the entire repayment may be made pre-tax thanks to the FBT exemption.
Used cars can be a smart way to access novated leasing with a lower upfront cost.- Salary packaging a new car
If you go with a new car, you’ll be buying the latest model direct from a dealer. While the total lease value may be higher, you get:
- Your choice of make, model and colour
- Warranty coverage for several years
- Lower maintenance costs
- Newer safety and fuel efficiency features
See your
potential savings
Explore our
vehicle deals
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.
