Some employees assume that using their employer's nominated salary packaging company means they must also accept that company's finance option. That is not always the case — but neither is BYO finance a universal entitlement.
A BYO pathway can be available when the employer and salary packaging administrator allow the vehicle finance to be sourced separately.
The question to ask HR or the salary packager
Use specific wording:
Does our novated lease program accept third-party or self-managed finance where I arrange the vehicle lease separately and continue to use the nominated salary packaging administrator for payroll and ongoing administration?
Then ask for the document requirements before applying anywhere.
Why someone might compare BYO finance
The goal should be comparison, not an assumption that independent finance will always be cheaper. A separate option lets you test:
- finance rate;
- establishment/PPSR fees;
- vehicle price if sourcing is also separate;
- residual and term;
- early termination terms.
Use the GPS Novated Lease Rate Calculator to compare the finance cash flows on equivalent assumptions.
What still needs to line up
A separately sourced lease still needs to work with the employer's novation and the salary packaging administrator's processes. The financier may also have documentation or employer acceptance requirements.
BYO finance is not the same as a normal car loan
A conventional consumer car loan and a vehicle finance lease used in a novated arrangement are different structures. Do not assume an ordinary car loan can simply be “plugged into” salary packaging. The documents and provider process need to support the intended novated arrangement.
Read Novated Lease vs Car Loan: What Should You Compare?.
Check whether a BYO pathway may be available: send a novated lease enquiry.
About the author: KK Neelamraju is a finance and credit professional and founder of GPS Finance Group.
General information only. Finance approval and pricing are subject to lender assessment. Tax-sensitive information should be checked against current ATO guidance and, where appropriate, with a qualified tax adviser.
Frequently asked questions
Can I arrange my own finance for a novated lease?
Sometimes. It depends on whether the employer and salary-packaging provider allow an externally sourced or self-managed finance arrangement and whether the finance structure satisfies their process.
Does BYO finance mean changing salary-packaging providers?
Not necessarily. Some arrangements allow the approved salary-packaging administrator to remain in place while the finance is sourced separately.
What should I compare before using BYO finance?
Compare the financed amount, rental schedule, residual, fees, administration charges, end-of-term obligations and any employer or provider restrictions.
Sources and verification
These sources support the general framework above. Lender-specific policy, pricing, limits and turnaround times can change and should be checked before a formal application.
Related GPS Finance resources
Prime decision hub
For the broader decision framework, see How to Calculate the True Finance Cost of a Novated Lease.
Have a novated lease quote you want checked?
Send the quote context and we can review the finance rate, residual, fees and whether a BYO or self-managed finance path is worth exploring.
