How to lease a pre-owned vehicle
A novated lease can be a great value option for used vehicles. The process is largely the same, but the vehicle just needs to meet a few extra conditions. We also have some extra checks and documents that you need to be aware of if you are acquiring the vehicle from a private seller (as the consumer protections that come from a dealer sale do not apply). This guide helps you tick off these extra requirements to ensure compliance and protection for both you and TFM.
Eligibility criteria for used vehicles
To qualify for a novated lease, the vehicle must:
Be no more than 10 years old by the end of the lease term.
Have a market value of at least $10,000.
Have the capacity to carry fewer than 9 occupants.
Have a total load capacity of less than one tonne.
Documents for non-Dealer sales
You'll need to provide additional documentation if you’re purchasing from a private seller.
It’s best to discuss these requirements with your seller or current financier upfront. This helps ensure a smooth transition for all parties. Below is a list of the extra documents we may need before we can process your lease paperwork.
Current registration papers
Show the name and address of the seller, along with vehicle details (rego, VIN, engine number).
Proof of clear title
To confirm the car is fully paid and has clear ownership:
Tax Invoice from dealer: This invoice must show that the car was paid in full, with no balance owing. The name on the invoice must match the seller’s registration papers.
If the Tax Invoice doesn't show that it's paid in full, we require the following:
Bank statements showing payment to the dealer matching the invoice.
OR
Dealer Confirmation Letter: A letter from the selling dealer confirming full payment was made with the car’s rego, VIN, and buyer’s name.
Note: If the car was purchased from a company, the title may not be fully clear. We may require additional checks.
Finance payout (if applicable)
If finance is owed on the vehicle, we require a payout letter from the financier with the following:
- Payout amount
- Valid for a minimum of 7 days
- BSB and account details
Vehicle inspection (if applicable)
For vehicles with no finance owing, we require a vehicle inspection at a Toyota dealer to verify the car’s model and details or this can be done virtually by TFM. Please note, this is not a mechanical inspection, just a check of the vehicle’s identifiers. We also recommend that the buyer conducts their own mechanical inspection to ensure the vehicle’s condition.
Seller’s account information verification
We require the seller’s bank account details (name, BSB, and account number) to be verified. This can be provided through a Bank Statement, Deposit Slip, or a letter from the bank. For security purposes, we’ll verbally confirm the bank details directly with the seller.
Seller’s information
The following details from the seller must be provided:
- Full name
- Address
- Contact details (telephone number and email)
Note: If the seller is a company, we’ll require their ABN details so we can complete the necessary business checks. Additionally, if there are any fixed or floating charges over the company, a Deed of Release (under Corporations Law) is required, confirming a clear title for the vehicle.
Remember, TFM is here to help you through this process. Feel free to call us on 1300 888 872 between 8:45am-5pm (AEST) if you have a particular used vehicle in mind and we can provide the next steps.
Get started now
Once you’re ready to get started, give us a call on 1300 888 872 or fill out our enquiry form to get a quote
