Novated leases present a tax-efficient option for vehicle financing, utilising pre-tax income for car loan repayments. This arrangement requires the consent of your employer, who will then make the repayments on your behalf as part of your salary package. It’s important to note that if the vehicle is used for personal purposes, it may incur fringe benefit tax (FBT) obligations for the employer. The flexibility of novated leases allows them to cover a range of costs, from lease payments alone to a comprehensive package including running expenses and all vehicle-related costs such as registration, insurance, servicing, tyres, and fuel, commonly referred to as salary packaging. These secured loans offer the advantage of financing both new and used vehicles, with the option to purchase from dealerships or through private sales.