Can You Novated Lease a Trailer? Guide

A novated lease is a three-way arrangement between you, your employer and a finance company, where the lease payments and running costs of a car come out of your salary. It's popular for cars, so people often ask whether the same works for a trailer.

Can a trailer be novated?

Generally, not on its own. Novated leases are designed for cars and certain other vehicles an employee uses, and a trailer usually isn't eligible by itself. Some providers let you include accessories on the car, such as a towbar or brake controller. Check with your employer's salary packaging provider about what they allow.

Alternatives for employees

• Consumer trailer finance: a secured loan in your own name, with the trailer as security. This is the usual route for campers, boat trailers and horse floats.
• Personal loan: for smaller amounts, an unsecured personal loan can be simpler.
• Business finance: if you also run a business on the side and the trailer is mainly for that, it may be financed through your ABN.

Novating the tow vehicle

If you're also buying a car to tow the trailer, a novated lease on the car and separate finance on the trailer can work well together. Speak to your salary packaging provider and your accountant about the car, and to a broker about the trailer. See personal vs business trailer finance.