Get the car you want now, for less

Cars are one of our biggest household expenses, yet many of us haven’t been exposed to the significant savings and convenience that a novated lease can offer. It’s one of the cheapest ways to own and run your car.

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Novated leases save time and money

Flare makes novated leases easy

Our fully digital novated lease process is completely paperless from start to finish, making it faster, easier, and better for you and the environment.

You’ll be supported by a Flare cars concierge. We’ll manage every step of the process, from trading in a car, to sourcing a new one, and having it delivered to your door.

Our Flare car experts have an extensive understanding of all cars, including electric vehicles and plug-in hybrids. We help you keep across the latest EV and plug-in hybrids to get the right car for you.

It’s convenient and hassle-free

How do the savings work?

Find out the benefits and steps involved to get your business set up in minutes.

What is a novated lease and how does it work?

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Frequently asked questions

What is a novated lease?

A novated lease is an arrangement between you, your employer and a financier for a period of time, between one to five years. You can still leave your employer during that time. If you do, you have the options to pay your car off, pay the financier directly or alternatively, you may be able to take the lease with you subject to your new employer’s approval.

Your employer makes before-and-after-tax deductions (known as salary sacrificing) to pay for your car and running costs, helping to save money on tax.

When you decide on a novated lease with Flare, we’ll arrange everything for you from identifying and sourcing the car at a great price through our network, helping you apply for finance, to buying your car and having it delivered. We’ll manage the arrangement with you and your employer. It’s that easy.

How does residual value work?

You don’t pay the car off in full over the term of the lease as there must be a ‘residual value’’ amount remaining at the end of the lease period. The amount unpaid is owed at the end of the lease. This is determined using a methodology set out by the Australian Tax Office. When you come to the end of your lease, you have plenty of options:

Trade-up your car and upgrade with a new lease

Re-lease your car and pay the residual amount

Payout the residual amount and own the car outright

Sell the car and use the proceeds to pay the residual amount

Can I change jobs with a novated lease?

You are not tied to your employer because you have taken up a novated lease. If you move on, you have the options to pay your car off, pay the financier directly or alternatively, you may be able to take the lease with you subject to your new employer’s approval.

Can I buy an EV car with a novated lease?

Yes, you can get a novated lease for an electric vehicle and plug-in hybrid with Flare. Our car experts can help you benefit from the significant saving advantages of a novated lease while you help the planet.

When you go electric, you’ll save on fuel and maintenance compared to an internal combustion engine vehicle.

These savings could be amplified even more with a novated lease. Eligible electric vehicles and plug-in hybrids are now exempt from the 47% fringe benefits tax – only if provided through a novated lease. The vehicle must be at first sale less than the luxury car tax threshold for fuel efficient vehicles which is $84,916 as of the 1st of December 2022.* Find out more.

*While vehicles are exempt from paying FBT, there will be reportable fringe benefits for employees.

Do I need to drive a lot to benefit from a novated lease?

This is no longer the case. The Federal Government changed legislation a few years back which made the benefit of leasing universal regardless of kilometres driven. So, it doesn’t matter how much you drive per year, you will still save money. The only thing kilometres impact are your running cost budgets for fuel, servicing and so on.

What if my car's actual running costs are different to what Flare has budgeted?

Flare will try and make sure that your budgets are as accurate as possible, however if your expenditure exceeds what we are taking in budgets – we will contact you about increasing your deductions. Also, if we are taking too much and your actual running costs are less than what we have budgeted then we can look at reducing your budgets.

Employees love Flare Benefits

Neil bought his Subaru through a Flare novated lease.
It was a very simple process. I didn’t have to meet anybody, it was all handled remotely, it was just emails and a DocuSign electronic signature on a contract. So very simple. Since I’ve actually taken my car for work, it’s enabling me to get a lot more flexibility.

Neil Creasey

Executive Enterprise Agile Leader, VIC

Alexandra bought her Subaru through a novated lease.
The whole novated lease process was simpler and more convenient than the traditional car buying experience, and the Flare folks basically held my hand through the whole thing. They got me the car I wanted delivered to my door, and I can use pre-tax dollars to pay for it which reduces my taxable income.

Alexandra Myers

Veterinarian Pathologist

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Terms and conditions

*For fringe benefits tax (FBT) purposes, a car is any of the following:
– a sedan or station wagon
– any other goods-carrying vehicle with a carrying capacity of less than one tonne, such as a panel van or utility (including four-wheel drive vehicles)- any other passenger-carrying vehicle designed to carry fewer than nine passengers
1 Pricing based on the drive-away cost of a MY21 Hyuandai Tuscon Active in NSW.
2 The residual cost for this model comes to $14,724, based on a balloon payment of 37.5%
The above comparison is indicative and of a general nature only, and we have not taken your personal financial objectives, situation or needs into account. We recommend you consider if you need to seek professional financial advice before making any financial decisions regarding Flare Cars.
All calculations are based on the following assumptions: living in NSW, salary: $70,000 gross p.a., travelling 15,00 kms p.a., finance/lease term: 48 months. Figure quoted include budgets for finance, fuel, servicing, tyres, maintenance, comprehensive insurance, registration and CTP.
Novated lease calculations: use Net GST processing method and Employee Contribution Method for FBT purposes; the total cost over life reflects the net effect after rax and includes a Flare cars admin fee; Interest rate quoted for novated lease is 5.78% p.a. vs 7.49% p.a. for a car loan. Cash cost per month based on capital cost of the car divided by 48 months and does not factor in loss of interest. Comprehensive Insurance estimate based on 2.5% of the purchase price of the car.

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Novated leases save time and money