Buying your first new car? Here's why you should consider novated leasing
Buying your first new car is an exciting milestone.
Whether you're replacing an older vehicle or upgrading to something more reliable, it's about more than choosing the right make and model.
You'll also need to think about how you'll finance your vehicle and manage the ongoing costs of ownership.
For many Australian employees, novated leasing is an option worth exploring.
Sav KantzipasNational Manager – Novated Client Engagement
21 Jul 20262 min read
What is a novated lease?
A novated lease is a salary packaging arrangement that allows eligible employees to finance a vehicle through their employer’s authorised benefit program.
Depending on your circumstances, lease payments may include both pre-tax and post-tax salary deductions, and many every day running vehicle costs can be bundled into a single regular payment.
These costs can include:
Registration and Compulsory Third Party insurance (CTP)
Comprehensive insurance
Servicing and maintenance
Tyres
Fuel or EV charging
Roadside assistance
Instead of managing multiple vehicle expenses throughout the year, many drivers prefer the convenience of a single, predictable payment.
Why do first-time buyers consider a novated lease?
1. Simpler budgeting Buying a car doesn't stop at the purchase price. Registration, insurance, servicing and fuel all add up over time. A novated lease can package many of these costs together into one regular payment, making it easier to budget for your vehicle.
2. Potential tax benefits Depending on your personal circumstances, a novated lease may provide tax advantages compared with other finance options. Eligible electric vehicles may also qualify for fringe benefits tax concessions under current Australian legislation. A personalised quote can help you understand how these benefits may apply to you.
3. Access to a newer vehicle Many employees find a novated lease gives them greater flexibility when choosing their next vehicle. Whether you're looking for improved safety features, lower running costs or an electric vehicle, a novated lease may provide access to options that better suit your needs.
4. One provider to help manage your vehicle From arranging finance and servicing through to insurance and roadside assistance, a novated lease can simplify the administration of owning and maintaining a vehicle.
Is novated leasing right for you?
A novated lease isn’t the only way to finance a car, and it won’t be the right solution for everyone.
Your income, employment, driving habits and financial goals all play a part in determining which vehicle finance option best suits your circumstances.
If you’re buying your first new car, it’s worth comparing your options before making a decision.
Ready to explore your options?
If your employer offers novated leasing, requesting a personalised quote is a great place to start.
A tailored quote will help you compare costs, understand your estimated repayments and see whether a novated lease could work for your circumstances.