Novated Choice

Novated Choice: novated car leasing in Australia

Novated Choice is an Australian company specialising in novated leases, a vehicle financing model in which payments are deducted directly from pre-tax salary. The firm presents itself as a comprehensive intermediary: it sources the vehicle, negotiates the price, manages financing approval, and handles the administrative, contractual, and compliance aspects, including setting up payroll deductions with the employer.

How the service works

The process described by the company is organised into three steps: the client chooses the car and receives a detailed quote; Novated Choice sources the vehicle at a competitive price and obtains financing approval; and finally the user starts driving with payments deducted from their salary. The company states that it also contacts the employer and arranges financial approval on the client's behalf.

The lease bundles financing, fuel, tyres, maintenance, insurance, and vehicle registration into a single payment. According to the company, this arrangement reduces taxable income and eliminates GST (the Australian goods and services tax) on the car's price and most running costs. Where dealer agreements are in place, the client can access fleet pricing with discounts on the vehicle, servicing, tyres, and insurance.

Electric vehicles and tax incentives

The firm dedicates a specific section to electric vehicles. It notes that the Australian government removed the Fringe Benefits Tax (FBT) for low- or zero-emission electric vehicles, so novated lease payments on an electric vehicle may be exempt from that tax. The site includes a comparative example of the purchase and running costs of a Tesla Model 3 RWD over five years versus paying cash or traditional financing, calculated for a driver in New South Wales with a gross salary of $90,000, 15,000 km per year, and an interest rate of 8.5% per annum.

Calculators and simulation tools

Novated Choice offers three online calculators: a novated lease calculator, which allows key figures to be adjusted to estimate affordability; one specifically for electric vehicles, aimed at measuring the savings from the government incentive; and a running cost calculator, which allows current car expenses to be entered to find out the real cost. The company also publishes a marketplace with featured vehicles.

Featured vehicles and brands

The site's catalogue shows models from Tesla, Ford, and Mazda, including the Model Y RWD, with weekly prices indicated from $210; the Ford Ranger, from $242 per week; and the Mazda Evolve CX-60, from $244 per week. The company states that almost any car can be included under a novated lease: new, used, or even already owned, provided it is under ten years old at the end of the contract, with possible exceptions by referral. It mentions petrol, hybrid, electric, and plug-in hybrid vehicles with a carrying capacity under one tonne.

End of contract and client options

At the end of the lease, the company offers three alternatives: upgrade the car while keeping the novated lease payments running, extend the agreement to keep the vehicle, or pay the residual value and own the car outright.

Client and employer profile

The service is aimed at Australian salaried employees and requires the employer's agreement to establish the lease package and payroll deductions. The company has a specific section for employers and an account access section for clients.

Location and contact

Level 5, 15 Claremont St, South Yarra, VIC, AU · Phone: 1300 050 550 · Email: info@novatedchoice.com.au · Hours: Open every day, from 00:00 to 23:59