Novated Lease
Drive your salary further with a Volkswagen Novated Lease
A Novated Lease is a three-way agreement between you, your employer and Volkswagen Financial Services1 that allows you to pay for your car from your pre and post-tax income – which could save you money. With the option to bundle all your car-related expenses into the same easy payment as your car, including registration, compulsory third party insurance (CTP), comprehensive insurance, charging/fuel and maintenance, enjoying a car has never been easier.
Your benefits
- Reduce your income tax by paying for your new Volkswagen through pre-tax salary
- Save GST on the car finance
- Flexible finance terms of up to 5 years
- Budgeting made easy with the option to bundle all your car-related expenses into one payment, automatically deducted from your salary by your employer each pay cycle
Employee Guide
Novated Lease Employee Guide explains how a novated lease works, its benefits, and what ongoing driving costs can be included.
Employer Guide
Novated Lease Employer Guide provides employers with information, guidance and the benefits on offering novated leases to their employees.
How it works
- Select your Volkswagen – new or used (car must be less than 8 years old at the end of the lease)
- Check to see if you’re eligible for a Volkswagen Novated Lease with your employer
- Submit a credit application through your local Volkswagen Dealership
- Sign the lease agreement – your employer will need to sign the novation agreement
- Pick up your Volkswagen
If you change jobs, you simply take the car with you and continue to make the car finance repayments directly or transfer your novation agreement to your new employer. If you or your new employer choose not to have the novation agreement transferred to your new employer, the finance payments will be for the car only and will need to be made from your post-tax salary and you will not have the option to bundle running costs into your payment.
Employee specific FAQs
What’s the difference between a novated lease and a traditional car loan?
What’s included in my novated lease payments?
Can I package up the cost of charging my EV from home?
Can I package up the cost of buying and installing and EV charger at home?
Can I claim the cost of using a public charger?
What happens at the end of my novated lease?
What is a residual value?
What happens if I change jobs during my novated lease term?
Employer specific FAQs
What are the set up or ongoing costs over the term?
What kinds of employers can offer novated leases?
Will this program create extra work for our organisation?
Who is responsible for the car lease payments?
How are GST credits handled?
How are FBT obligations met?
Are there government incentives for low-emission vehicles?
What happens if an employee with a novated lease leaves?
What happens at the end of the lease?
Is there any liability for our organisation?
Will Volkswagen Financial Services help with payment calculations and reporting?
What happens if an employee takes unpaid leave?
Next steps
If you are unsure whether a Novated Lease is right for you, please speak to your accountant or financial adviser.