Novated Lease Australia inks BYD finance partnership

Novated Lease Australia has partnered with BYD Australia and DENZA in an agreement covering customer acquisition, dealer support and showroom integration.

The deal makes NLA a finance partner for BYD and its premium marque, DENZA, as the Chinese carmaker expands in Australia's electric and plug-in hybrid vehicle market.

Demand for BYD vehicles through NLA's leasing platform rose 62 per cent over the past 12 months, reflecting broader interest in salary-packaged vehicle finance as electric vehicle choice widens beyond early adopters.

The partnership also brings novated leasing more directly into the sales process at BYD dealerships. Rather than leaving finance until after a customer has chosen a vehicle, NLA will give dealers tools and support to discuss leasing in the showroom.

Dealer focus

The showroom element is central to the deal. The aim is to connect buyers and employers to the leasing process through both dealerships and BYD's digital channels.

NLA also plans to integrate with BYD's customer platform so eligible buyers can assess the tax savings available on qualifying zero-emission vehicles under the fringe benefits tax electric vehicle exemption. That should give customers a clearer view of total ownership costs before completing a purchase.

The tie-up comes as electric vehicle sales gain ground in Australia. According to VFACTS data cited by the companies, battery electric vehicles accounted for nearly one in four new vehicle sales in August, the highest single-month volume recorded in the local market, and ahead of petrol vehicle sales for the first time.

That shift has prompted carmakers, dealers and finance providers to rethink how they present funding options, particularly as novated leasing has become a more visible route for employees seeking tax advantages on eligible electric models.

NLA is onboarding hundreds of new employers each month and leases hundreds of vehicles each month across Australia. It has more than 120 staff and has collected more than 3,500 five-star customer reviews.

BYD has been one of the most closely watched new entrants in the Australian market, building share through a broader model range and lower-priced electric offerings than many established rivals. DENZA gives the group a premium brand to target a different segment of the market.

Growing competition

The electric vehicle finance market has become more competitive as more manufacturers seek to embed funding options within online buying journeys and dealer operations. For car brands, the objective is to reduce friction in the purchase process and improve conversion rates from enquiry to sale.

For leasing providers, direct relationships with manufacturers and dealer networks offer access to a larger flow of customers at the point where purchase decisions are made. They also create an opportunity to explain tax treatment, running costs and employer arrangements earlier in the process.

Bevan Guest, Chief Executive Officer of Novated Lease Australia, said the company saw practical value in linking leasing more closely to the vehicle purchase journey.

"Novated leasing is one of the few benefits that puts real money back in people's pockets, but only if the experience is good enough that people actually use it. Bringing that to BYD customers means more Australians can make the switch to electric without the process getting in the way," Guest said.

Wing You, General Manager of BYD Australia, said BYD chose NLA for its approach to customer service and digital processes.

"We are partnering with Novated Lease Australia because its customer-centric culture and tech-forward platform closely aligns with BYD's values. NLA's track record in digital execution ensures that financing a BYD or DENZA is as effortless, intuitive and rewarding as driving one," You said.