Novated Leasing · Asset Finance
Your car, paid through your salary. We check whether it beats a car loan first.
If your employer offers salary packaging, we compare a novated lease with a car loan, check the running costs and your home loan plans, then tell you plainly which leaves you ahead.
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What happens next
Why commercial through Evolve
Commercial is where we do our best work
Lease, loan or cash
We cost the novated lease against a car loan and paying cash over the full term, with fees, running costs and the residual included.
Employer rules first
Some employers only sign with their appointed provider. We confirm what your payroll team will accept before you commit to a car or a quote.
Home loan plans checked
A lease lowers your taxable pay and adds a commitment. If a home loan is coming, we check how lenders will read it first.
Residual planned upfront
Every lease ends with a residual payment, its minimum set by the ATO. We plan from day one whether you pay it, refinance or trade.
“Les and Mark were wonderful throughout the entire process, providing expert advice to secure the exact deal I needed for my financial goals. Communication was excellent, and they kept me informed every step of the way.”
Jeff, Google review
“Evolve Lending & Finance have looked after us a number of times we have always found the team to be very friendly courteous and they just get the job done we would not go anywhere else.”
Lyn, Google review
In plain terms
Novated leasing, and when it is worth it
Novated leasing lets you pay for a car through your salary: your employer deducts the lease and running costs from your pay, wholly or partly before tax. Because the pre-tax part saves income tax, and GST credits reduce the car’s price (up to a cap) and most running costs, it can cost less than a car loan. Whether it does depends on the car, your income and how long you stay with your employer.
The gap is widest on an eligible electric car, currently exempt from fringe benefits tax. On a petrol car and a modest income, a car loan can come out ahead once fees and the residual are counted, and if it does, we can finance your next car that way. Mark started out in the accounts and vehicle maintenance teams of a novated lease provider, so we know how a running costs budget plays out over a full lease.
Tell us the car, your employer and your plans for the next few years. The answer will be straight: a lease, a loan, or not yet, and why.
How it works
From first call to settlement
- Step
The recommendation
A 15 to 30 minute call about the car, your pay and your employer’s rules, then lease, loan and cash compared in writing.
- Step
Lease application
Once you choose the lease, one application goes to the financier that fits, with ID, payslips and the car’s details.
- Step
Lender approval
The financier assesses you and the car. You hear the outcome and any conditions plainly, and your employer receives the three-way agreement to sign.
- Step
Approval to settlement
Once your employer has signed, we settle with the dealer and payroll deductions begin. Delivery then depends on the dealer, not the finance.
Understanding novated leases
How salary packaging a car works
What is a novated lease, in plain terms?
A novated lease is a car lease between you and a finance company, paid by your employer out of your salary. The lease and the car’s running costs come out as one regular deduction, some or all of it before tax.
Fuel or charging, servicing, tyres, registration and insurance can be budgeted in. If you change jobs, the lease comes back to you, paid from after-tax income, unless a new employer takes it on or you pay it out.
Novated lease or car loan: which costs less?
It depends mostly on the car and your income. An eligible electric car usually favours the lease while it remains exempt from fringe benefits tax, but on a petrol car and a lower income, a plain car loan can cost less.
Compare the total over the full term rather than the weekly figure in a quote, including fees, any margin in the running costs budget and the residual.
Are electric cars still exempt from fringe benefits tax?
Yes, for now. An eligible electric car priced under the luxury car tax threshold for fuel-efficient vehicles is exempt from fringe benefits tax (FBT), so the whole lease can come out of your pre-tax pay.
Draft laws released in September 2026, not yet passed, would cut the exemption to a 25 per cent FBT discount for cars valued over $75,000 from 1 April 2027, and for all new leases from 1 April 2029. Leases committed to by 31 March 2027 keep the exemption until they end. Plug-in hybrids lost it for new leases from 1 April 2025.
Does a novated lease affect a home loan application?
Yes. The lease lowers your taxable income and adds a regular commitment, and lenders do not all treat it the same way when they work out what you can borrow.
Some count the full lease payment as a debt against your pay before packaging; others read it differently. If a purchase or refinance is coming, check the lease against it first.
Keep exploring
When a straight loan beats a lease.
For ABN holders and cars owned by the business.
Guide · Owning or leasing a vehicle through a business
Calculator · Test a home loan with the lease repayment included
Check the numbers before you sign
Call 1300 112 355
Questions worth asking before you sign
How does a novated lease work?
A novated lease is a salary packaging arrangement where the employee enters into the vehicle finance agreement and the employer agrees to make the lease payments on the employee’s behalf from salary packaging arrangements.
What is included in a novated lease?
That depends on the structure. A novated lease may include the finance repayment only, or it may also include some or all running costs such as registration, insurance, servicing, tyres, and fuel.
Can I choose a new or used vehicle for a novated lease?
In many cases, yes. Novated leasing may be available for both new and used vehicles, including dealership and private sale purchases, depending on the provider and the scenario.
What happens if I change jobs?
That depends on the terms of the arrangement and whether your new employer agrees to continue the novation. Because employer participation is central to the structure, this is something that should be understood clearly before proceeding.
Are there tax or fringe benefits considerations with a novated lease?
Yes. Novated leasing can involve salary packaging and may also involve fringe benefits considerations depending on the arrangement. That is why the structure should be assessed properly before it is put in place.
Can I include running costs in my novated lease?
Yes, in some cases. Depending on the structure, a novated lease can package some or all of the ongoing vehicle costs along with the finance itself.
How do I know if a novated lease is right for me?
The right answer depends on your employment situation, your employer’s willingness to participate, the vehicle, the intended running costs, and whether the structure produces a better overall outcome than other finance options.