What’s the difference between a novated lease and a car loan?

With a regular car loan, you’d be making repayments with your post-tax salary. With a novated lease, your payment uses some of your pre-tax salary, which could lower your taxable income.

Then there’s the fact that all your running costs are bundled into one regular, easy, automatic payment.

PLUS Oly helps you find your new car, takes care of most of the admin and makes it easy to switch your car for a new one once your lease is up.

You won’t find a car loan that can do any of that!

Why should I take out a novated lease instead of buying a car?

Not only could a Oly novated lease save you money, it removes a lot of the hassle that comes with owning a car.

Once you’ve decided on your car (yep, Oly can help with that too!), Oly will set up a simple annual budget that bundles up all those pesky running costs – that’s petrol, servicing, rego, insurance and the car itself, obviously – into one regular payment.

Then, once you get your car, that payment gets taken directly out of your pay using a combination of your pre- and post-tax salary. If you’re leasing an eligible electric car, the payment is all taken before tax.

Let’s break all those benefits down:

• Buying power
  Since Oly buys so many cars from dealerships across the country, you could get access to some pretty amazing deals.
• Tax savings
  Some (or all) of your payments are made with pre-tax dollars, so your taxable income is reduced. That means you could pay less tax! Even better: you could skip the upfront GST on your new ride too.
• Less hassle
  Oly sorts out all the administrative stuff, including finding your new car, dealing with the money people, and sorting insurance. That means less stress and more time cruising with the windows down.
• Better budgeting
  That one regular payment includes your car AND all your running costs. That means no more of those terrifying registration or insurance renewal bills.
• Flexibility
  With Oly, you can choose the car you want to drive, whether it’s new, used or the car you’ve already got.

The government’s Electric Car Discount policy. How does that work with a novated lease?

To try to encourage more drivers to pick up an electric car, the government has dished out an exemption to the fringe benefits tax for low-emission cars valued under $91,387 (the luxury car tax threshold as of July 1, 2024).

That means when you use Oly to get into an EV, your novated lease payments can be taken entirely from your pre-tax salary, which could mean having to pay less tax.

Add an exemption to the 5% import tax for most EVs, and the fact that there is no upfront GST cost to you when using a novated lease on an EV, and you could get a shiny new electric Tesla 3 for the same cost per week as a petrol Mazda CX-5.

*&^Terms and conditions

*All eligible vehicles must be ordered before 30/06/25 (unless extended), or while stocks last. Displayed price is only available through a novated lease administered by Oly in Queensland. Government duties and charges may vary the weekly pricing in other states and territories. Weekly costs have been determined based on the following assumptions: 1) The lease is a Oly fully maintained lease, 2) A 5 year term, 3) A residual value of 28.13% of the vehicle purchase price payable at the end of term, 4) Inclusion of finance and budgeted costs for: fuel or electricity, 4 replacement tyres, maintenance, roadside assistance, registration, CTP and comprehensive insurance, 5) Gross annual salary is $90,000. 6) Vehicle purchased in QLD, 7) 15,000km per annum, 8) Salary Sacrifice using Employee Contribution Method (ECM). The Fringe Benefits Tax Exempt Method is only used for eligible electric vehicles under the luxury car tax threshold of $91,387. The indicative price quoted for the novated lease is based on vehicle quotations received within the last 45 days and does not include any optional extras. Any optional extras that you choose will affect the cost of the novated lease and residual value. If you purchase the vehicle on termination of the novated lease, GST will apply on the purchase price you pay at that time. The novated lease offer is based on the assumption outlined above, and is an indicative cost approximation of the selected vehicle and model shown and the amounts may change at the time the novated lease quotation is completed and finalised. Your individual circumstances have not been taken into account as this will affect the overall weekly cost amount and the benefits of a novated lease. These specials cannot be used in conjunction with any other offer.

From 1 April 2025, a plug-in hybrid electric vehicle is no longer considered a zero or low emissions vehicle under FBT law. However, your employer can continue to apply the exemption if both the following requirements are met: 1) Use of the plug-in hybrid electric vehicle was exempt before 1 April 2025. 2) You have a financially binding commitment to continue using the vehicle for private use on and after 1 April 2025. For this purpose, any optional extension of the agreement is not considered binding. To qualify for the EV discount, plug-in hybrid electric vehicles must have been delivered by midnight on 31 March 2025.

^ Savings shown are indicative and reflect estimated tax savings over the full-term of the lease. The total amount saved is a comparison between a novated lease based on the assumption outlined above and the purchase of a vehicle and payment of running and maintenance costs using post-tax earnings. Actual savings will depend on your personal circumstances. Oly recommends that you seek independent financial and taxation advice.

#Please note that stock levels vary from time-to-time and so certain vehicles may not be available at the time of enquiry.

Things you need to know: This general information doesn’t take your personal circumstances into account. Please consider whether this information is right for you before making a decision and seek professional independent tax and financial advice. Conditions and fees apply, along with credit assessment criteria for lease and loan products. The availability of benefits is subject to your employer’s approval. Oly may pay and/or receive commissions in connection with its services. Actual vehicle prices are based on specific vehicle and accessories, prices and savings may vary based on additional options selected with vehicle. Oly does not act as your agent or representative in respect of the purchase of any vehicle. Oly does not provide any advice or recommendations in relation to the purchase of any vehicle.

Please note: The content of this page is provided to you on the condition that you undertake all responsibility for assessing the accuracy of the content. Oly gives no guarantee and accepts no liability for the quality, safety or standard of motor vehicles or parts referred to or the truth or accuracy of the information contained on this page except to the extent required by law including, but not limited to, consumer guarantees under the Australia Consumer Law. You acknowledge that any images shown on this page are for illustration purposes only and may not be an exact representation of the motor vehicle on offer. The specifications you choose may affect the price you pay.