Novated leases are a popular way of leasing vehicles which form a part of a salary package. The repayments are paid pre-tax so it reduces your taxable income. A novated lease is the same as a standard Finance Lease, however, your employer makes the repayments. If you resign or are made redundant, your employer makes the repayments. If you resign or are made redundant, the vehicle remains with the employee and they assume responsibility for the rentals. Terms generally range from 12 to 60 months, and the interest rate is fixed for the term.