If you're still rocking a Lion-badged beauty and want to save some serious cash on your running costs, getting a holden novated lease might be one of the smartest financial moves you can make. Even though Holden officially stopped local production and eventually wound down operations in Australia, thousands of these cars are still tearing up the bitumen every day. From the rugged Colorado to the late-model ZB Commodores, these vehicles are still very much eligible for salary packaging, and the tax benefits are just as real today as they were ten years ago.
A lot of people think novated leasing is strictly for people who want to roll off a showroom floor in a brand-new electric vehicle or a shiny European SUV. That's a total myth. You can absolutely lease a used car, and for those of us who aren't ready to give up our Holdens just yet, it's a great way to handle the upkeep of a vehicle that might be getting a little bit older.
How the whole thing actually works
At its core, a holden novated lease is just a three-way agreement between you, your employer, and a finance company. Instead of you paying for your car out of your pocket after the government has already taken its cut of your salary, the payments come out of your salary before you get taxed.
It's called salary packaging, and it's basically a legal way to lower your taxable income. Because the lease payments and all those annoying running costs—like fuel, insurance, and servicing—are taken out of your gross pay, you end up paying less tax overall. You're essentially spending money that would have gone to the taxman on your car instead. It's a win-win, really.
Can you lease a discontinued brand?
This is the question that usually pops up first. Since Holden isn't making new cars anymore, you're obviously looking at the used market. The good news is that most leasing companies are perfectly happy to hook you up with a holden novated lease on a used vehicle, provided it meets certain age and kilometer requirements.
Usually, the car can't be more than 10 or 12 years old by the time the lease ends. So, if you're looking at a late-model VF Series II Commodore or a 2019 Colorado, you're golden. Even the last of the imported ZB models are great candidates for this. If you already own your Holden and it's relatively young, you can even do what's called a "sale and leaseback." This is where the leasing company buys the car from you at its current value, gives you the cash, and then leases it back to you. It's a great way to put some money back in your bank account while still getting those sweet tax breaks.
The GST benefit is a game changer
One of the biggest perks that people often overlook with a holden novated lease is the GST saving. When you pay for a set of new tires or a major service at a mechanic, you're usually paying 10% GST on top.
With a novated lease, the leasing company can usually claim that GST back, and they pass those savings on to you. Over the course of a three or four-year lease, that 10% saving on every tank of fuel and every spare part adds up to thousands of dollars. Considering that parts for Holdens might eventually become a bit more specialized as time goes on, having that extra 10% in your pocket for maintenance is a massive help.
Keeping your Holden on the road for less
Let's be honest: Holdens are built tough, but they aren't getting any younger. Maintenance is the key to keeping them running smoothly. When you set up a holden novated lease, you can include a managed maintenance program.
This means you don't have to stress when the "service due" light pops up on the dash. The costs are already budgeted for in your lease payments. Plus, because the leasing company manages thousands of vehicles, they often have access to fleet pricing for parts and labor. You're getting "tradie prices" at the mechanic rather than paying the standard retail rate. It makes owning a performance car or a heavy-duty 4x4 a lot more affordable for the average person.
The flexibility of used car leasing
The cool thing about a holden novated lease on a used car is the flexibility. You aren't locked into the massive depreciation hit that comes with a brand-new car. We all know that a new car loses a chunk of its value the second you drive it out of the dealership. With a used Holden, someone else has already taken that hit.
You can often find a great deal on a second-hand Colorado or Trailblazer, package it into a lease, and end up with a very low monthly payment. Because the car's value is lower than a new one, your total amount financed is smaller, which keeps your "pre-tax" deductions manageable. It's a very savvy way to manage your personal cash flow.
What happens at the end of the lease?
When your holden novated lease reaches the end of its term, you've got a few options. This is where it gets interesting for Holden fans. Since these cars often hold their value quite well—especially the last of the V8s—you might find that your car is worth more than the "residual value" (the final lump sum) you owe at the end.
You can pay out the residual and own the car outright, or you can often re-lease the same car if it's still within the age limits. If you decide to sell the car and the sale price is higher than the residual you owe, you keep the profit—completely tax-free. Given the cult following Holden has in Australia, keeping a clean Commodore or a well-maintained Colorado can actually be a decent little investment.
Is it right for everyone?
I won't lie to you and say it's a perfect fit for every single person. If you only drive 2,000 kilometers a year, the math might not be as compelling. However, for most people who use their car for commuting, weekend trips, or as a workhorse, a holden novated lease makes a lot of sense.
You also need to consider Fringe Benefits Tax (FBT). In the past, this was a bit of a headache, but most leasing companies use the "Employee Contribution Method" (ECM) to offset the FBT. Basically, you pay a portion of your lease from your post-tax income, which brings the FBT down to zero. It sounds complicated, but the leasing company handles all the math for you.
Why people still love the Lion
Even though the factories have closed, the passion for Holden hasn't faded. There's a reason you see so many of them on the road. They were designed for Australian conditions. They handle our bumpy backroads and our scorching summers better than almost anything else.
By using a holden novated lease, you're making it easier to keep a piece of Australian motoring history in your driveway. You get the benefit of a modern, organized way to pay for your car, while still enjoying the grunt and comfort of a vehicle that feels like home.
The bottom line
If you're looking at your budget and wondering how to trim some fat, don't overlook your car. A holden novated lease isn't just a relic of the past; it's a living, breathing financial tool that can save you thousands on tax, GST, and fuel.
Whether you're looking to pick up a used Colorado for the weekend camping trips or you want to keep your current Commodore running for another five years, it's worth getting a quote. You might be surprised at how much extra "beer money" or "mortgage money" you have left over at the end of every month just by changing the way you pay for your car. Holden might not be making new cars, but the tax office is still making rules that you can use to your advantage. Why not take them up on it?