The novated lease product is specifically designed for the financing of motor vehicles included in salary packaging arrangements. With a novated lease, you enjoy the use of a vehicle and the benefits of paying for the car from pre-tax salary.

The AFS novated lease is a tripartite agreement between AFS as the finance company (Lessor), you as an employee (Lessee) and your employer (Payee), under which you lease a car and your employer agrees to take on your obligations under the lease by paying the monthly lease rentals, and often the running costs, from your pre-tax income ("salary sacrificing" this income).

On completion of the novated lease period or on termination of your employment, responsibility for the lease reverts to you and the employer has no further obligation.

A novated lease may give rise to a fringe benefits tax liability and you should seek independent advice on this issue from your accountant.

Novated Lease Essentials

6.45%

Fixed Rate Novated Lease for a new car#

Benefits to the Employer:

  • Taxation Benefits - the lease payments and running expenses are generally tax deductible
  • No obligation for the vehicle on termination of the employee's employment: no residual risk and no excess vehicles if an employee leaves
  • The lease liability is off balance sheet
  • Reduced administration time & costs
  • Employment on-cost savings compared with paying the equivalent as a salary

Benefits to the Employee:

  • Flexibility in choice and use of a car that may not otherwise have been provided.
  • Tax effective as payments are made from pre-tax earnings.
  • Payments can be structured to suit the employee's needs, budget and cash flow.
  • Transportability of the lease on termination of employment.
  • The ability to have the car used by the employee's family, dependent on insurance restrictions.
  • The ability to make an offer for the vehicle at the end of the lease.
  • You retain any equity built up in the vehicle, not your employer.

# Commercial rates are only available for novated leases or businesses with a registered Australian Business Number (ABN) and where the goods being financed are predominantly for business use. Interest rate only applicable for new goods that have not been pre-owned and where the applicant has an established good credit history. Finance subject to approval, including the application of applicable lending criteria. Terms and Conditions apply. Fees and Charges are payable. Credit provider is Automotive Financial Services – Australian credit licence 383762. 

Fixed Rate Lease - Novated Lease

from
6.45%
p.a# 

Interest Rate
30% to
60%
of Purchase Price

Balloon Amount

1–5
years

Lease Term
$15,000
to
$100,000

Lease Amount

Monthly

Repayment Frequency

Fees

Fees that will apply on settlement

The following upfront credit fees and charges are payable to AFS on the settlement date of the lease.  They are only payable if you proceed with the lease and are included in the lease amount.

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FEE TYPE DEFINITION AMOUNT
Establishment Fee Represents the reasonable cost for AFS to provide the lease to you $395
Credit Search Fee Represents the reasonable cost for AFS to conduct the necessary credit bureau searches per applicant $6.37
Security Registration Fee Represents the reasonable cost for AFS to register our financial interest in the goods $8

The following fees and charges are payable to AFS during the term of the lease.

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FEE TYPE DEFINITION AMOUNT
Monthly Administration Fee Represents the reasonable monthly cost for AFS to administer your lease whilst active $10

The following fees and charges may become payable to AFS during the term of the lease.

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FEE TYPE DEFINITION AMOUNT
Early
Termination Fee ##
Represents the fee that will be payable when you pay out your lease contract in full before the expiration of the term of the lease. The amount of the fee as at the disclosure date is the early termination fee percent applied against of the interest rebate if the lease contract is paid out anytime after the settlement date. 30% of the interest rebate
Dishonour Fee Represents the reasonable cost for AFS to process the dishonour of a lease payment on each occasion $12
Repayment Book Fee Represents the reasonable cost for AFS to generate and issue a new repayment book on each occassion $35

Fees and Charges disclosed above are current as at 1st July 2016 but may change from time to time. Other fees and charges may be payable. Please review the fees and charges detailed in the pre-contractual statement for the specific loan or lease that you have chosen.

# Commercial rates are only available for novated leases or businesses with a registered Australian Business Number (ABN) and where the goods being financed are predominantly for business use. Interest rate only applicable for new goods that have not been pre-owned and where the applicant has an established good credit history. Finance subject to approval, including the application of applicable lending criteria. Terms and Conditions apply. Fees and Charges are payable. Credit provider is Automotive Financial Services – Australian credit licence 383762.

## Only applicable for the AFS Novated Lease product. Please read the relevant product Terms & Conditions and pre-contractual statement (if applicable) if you are considering another loan product or lease.

There are currently no special offers.
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How to apply

 

Applying for a novated lease online is fast and easy with AFS.

What's more there are no fees or charges payable to apply, even if you're approved!. Fees and charges are only payable if you decide to proceed with the lease.

Simply select any "Apply Now" button to get underway.

What to expect

STEP 1

Allow 10 minutes to complete your application online


STEP 2

Once you have submitted the application, you will receive an email notification advising you that we have receive your application and commenced the assessment process


STEP 3

You will also receive a number of disclosure documents by email. Please read these and save them for future record


STEP 4

We will respond to you within 2 working days:

  • To advise you of the application outcome once we have assessed your application and  verified all the information you have supplied
  • To obtain further information in order for us to complete processing your lease

STEP 5

If you don’t have all the information you need you can save a partially completed application and return to it, within 14 days, to complete the required information. We will issue you a secure login and password to the email address you supply us.