Most novated lease marketing is about shiny new cars, but you can absolutely novate a used one, including a demo or a private sale in some cases. The savings still work, with a couple of wrinkles worth knowing first.
The short answer
Yes. A used car can be novated as long as it meets the leasing company and financier criteria, which usually comes down to the age of the car at the end of the lease rather than today. The income-tax saving on the pre-tax payments works exactly the same as it does on a new car.
Where used is different
GST is the main one. On a used car bought from a private seller there is no GST in the purchase price for the leasing company to claim back, so that part of the saving is smaller or gone. On a used car bought from a licensed dealer, GST usually still applies and can still be claimed. It is worth knowing which situation you are in before you compare.
Age limits are the other. Financiers cap how old the car can be at the end of the term, so a 7-year-old car on a 5-year lease may not fly. Running-cost budgets can also be higher on an older car, as it is out of warranty and closer to bigger maintenance.
Is it worth it on a used car?
It can be, especially on a near-new or ex-demo car where you skip the first big chunk of depreciation but still get most of the GST and tax benefits. As always, the effective finance rate decides it. Used-car lease quotes carry the same fixed fees as new ones, so on a cheaper used car those fees are a bigger slice and the effective rate can look high.
Check it the same way you would any quote: work out the real rate, and compare the net cost against just buying the car. Note that the electric-car FBT exemption applies to eligible EVs whether new or used, as long as they meet the conditions, so a used EV under the threshold can still be very cheap to novate.