How to Apply for a Novated Lease?
A novated lease is one of Australia’s most tax-effective ways to drive a new car. It’s a three-way agreement between you, your employer, and a financier where your lease payments are deducted from your pre-tax salary. This unique structure can save you thousands in GST, income tax, and running costs compared to traditional car financing.
Key Benefits:
- Lower taxable income (potentially placing you in a reduced tax bracket)
- GST savings on the vehicle purchase price
- Bundled maintenance/insurance options
- Flexible end-of-lease choice
When applying for a novated lease, being prepared with the right documents can save you time and ensure a smoother application process.
A novated lease is a simple way to finance a vehicle through salary packaging, but to get started, you’ll need to provide some essential details.
This checklist will guide you through the documents required and how One Car Group makes the process straightforward and hassle-free.
Step-by-Step Novated Lease Application Process
Applying for a novated lease through One Car Group is straightforward. Here’s a quick overview of the process:
- Initial Consultation: Speak with our team to determine your eligibility.
- Document Preparation: Gather all necessary paperwork listed in our checklist.
- Application Submission: We help submit your application to a panel of trusted financiers.
- Approval & Vehicle Selection: Once approved, you choose your vehicle and finalise your lease.
Our consultants will support you at every stage to ensure your novated lease application is as simple and hassle-free as possible.
Documents required for a Novated Lease Application
There are several documents required to help us understand your circumstances. We recommend that before undertaking your loan application, you have some of the following documents ready:
1. Identification
In most cases, you will only need a clear colour copy of your drivers licence (front & back) which shows your current address. If your drivers licence is under 12 months old and you have not applied for credit in the past then the financier may ask for other forms of identification such as a passport, medicare card or bank issued card.
2. Proof of Income
Most application for finance on a novated lease only require a current payslip that shows year to date income, before and after tax. If it is a new financial year (July to September) then the financier may ask for a payslip to June.
In the event your financiers are a bit more complicated such as owing a rental property then the financier will want to see three months of rental income and expenses from your managing agent.
3. Proof of Where You Live
If you have lived at your current address for a short time the financier may wish to further confirm your home address. This can be done by providing one of the following:
• Mortgage statement;
• Council rates notice;
• Tenancy agreement; or
• Rental receipt
4. Additional Information Needed for Your Application
As part of the application, you’ll also need to provide details about your assets, liabilities, and ongoing expenses. This helps financiers assess your financial situation and determine your eligibility for the novated lease.
Why a Novated Lease Application might be declined?
It’s not common, but a novated lease application can be declined. Here are some of the main reasons:
- Incomplete documentation
- Poor credit history or low credit score
- Unstable employment or insufficient income
- Undisclosed debts or over-committed finances
To reduce the risk of rejection, ensure all documents are accurate and complete. Speak with our consultants if you’re unsure about any part of your application—we’re here to help.
What to Do If Declined:
- Ask the lender for specific reasons (they must disclose)
- Consider a cheaper vehicle or shorter lease term
- Wait 3-6 months to improve your financial position
- Our Success Rate: 92% of declined applications we review find a solution
How One Car Group Simplifies the Process?
Applying for a novated lease doesn’t have to be overwhelming. At One Car Group, our consultants guide you through every step of the process, ensuring it’s simple and hassle-free.
1. Step-by-Step Guidance from Our Consultants
Our team will help you gather the required documents, fill out forms, and navigate the approval process.
2. Ensuring a Hassle-Free Application Experience
We’re here to make the application process straightforward, giving you peace of mind and confidence in securing your novated lease.
Final Takeaways
Before submitting your novated lease application, make sure your documents are in order and your financial details are clear. If you’ve faced issues before or just want expert help, our team is here to guide you. Get in touch today or call 1300 616 993.
