A novated lease is a three-way agreement between you, your employer, and The Novated Lease Company, allowing you to lease a vehicle using your pre-tax salary. This arrangement can lower your taxable income and include all vehicle running costs, making budgeting simpler.

Benefits include potential tax savings, no upfront payment for the vehicle, inclusive running costs (like fuel, insurance, and maintenance), and the ability to choose the car you desire, new or used.

Your employer pays the lease and running costs directly from your pre-tax salary through a process called salary packaging. This reduces your taxable income and can lead to tax savings. The lease is novated, meaning it can be transferred to a new employer if you change jobs.

At the end of the lease, you have several options: trade the car in for a new lease, pay the residual value to own the car outright, or refinance the residual value to keep the car.

The residual value, or balloon payment, is set at the beginning of the lease based on ATO (Australian Taxation Office) guidelines and represents the expected value of the car at the end of the lease.

Yes, you can select nearly any car you want, new or used, as long as it meets any criteria set by the leasing company and your employer.

Risks can include being responsible for the lease if you leave your job and your new employer does not offer novated leasing, or owing more on the car than it's worth at the end of the lease.

Novated leases can reduce your taxable income since the lease payments are made using pre-tax dollars, potentially lowering your overall tax liability.

With a novated lease, comprehensive car insurance is typically included as part of your package to ensure the leased vehicle is fully covered. The cost of the insurance is factored into your regular lease payments, spreading the expense over the term of the lease. This setup simplifies managing your vehicle's costs by incorporating insurance into one convenient payment.

Yes, but terminating a lease early may incur costs. These costs can include the remaining lease payments and the residual value stipulated in your contract. Always review your contract terms and consult with your leasing company for specific details.