Top Small Cars for Novated Leasing in 2024
Novated leasing is an excellent way for Australian car buyers to maximise their savings. It's a three-way agreement between you, your employer, and a finance company. This arrangement allows you to pay for your car using pre-tax dollars, which can lead to significant savings.
Let’s explore some of the best small cars you can get with Novated Finance AU in 2024 in this guide :
Benefits and Considerations for Small Cars
Small cars offer substantial benefits for Aussies considering a novated lease. These compact vehicles are affordable upfront and economical regarding ongoing expenses like fuel efficiency and maintenance costs. Models like these come equipped with advanced safety features such as autonomous emergency braking, blind-spot monitoring, and lane-keeping assist, ensuring peace of mind on the road.
Emerging Trends in Small Cars
The small car segment in Australia is rapidly evolving, with manufacturers integrating advanced technologies and features to cater to modern consumer demands. One significant trend is the rise of electric and hybrid models, emphasising sustainability by reducing emissions and lowering running costs. Additionally, advanced driver assistance systems (ADAS) are becoming standard, offering features like adaptive cruise control, automatic parking, and traffic sign recognition. These driver-assistance features enhance safety and convenience, making driving more enjoyable.
Furthermore, the focus on customisation options allows buyers to personalise their vehicles with various interior trims, exterior colours, and additional accessories. Modern small cars also present sophisticated infotainment systems with smartphone connectivity, ensuring drivers stay connected and entertained. The growing emphasis on technology and connectivity ensures that small vehicles remain at the forefront of automotive innovation, providing Australian drivers with a blend of comfort, performance, and cutting-edge features.
Factors to Consider When Choosing a Small Car
Efficiency of Fuel Use
Essential for frequent drivers to minimise running costs.
Opt for models like the Toyota Corolla or Mazda3, known for their low fuel consumption.
Safety Measures
Crucial for ensuring driver and passenger safety.
Look for vehicles with advanced systems such as autonomous emergency braking, blind-spot monitoring, and lane-keeping assist.
Comfort and Spaciousness
Essential for a pleasant driving experience and accommodating passengers and cargo.
Small cars like the Hyundai i30 often offer surprisingly spacious interiors.
Modern Technology and Connectivity
Enhances the driving experience with contemporary features.
Includes sophisticated infotainment systems and smartphone connectivity.
Dependability and Warranty
Key to reducing unexpected maintenance costs and providing peace of mind.
Brands like Toyota, Mazda, and Hyundai offer comprehensive warranties.
Top Small Cars for Novated Leasing in 2024
Toyota Corolla
The Toyota Corolla remains a top choice for small cars, especially for novated leasing. Known for its fuel efficiency and reliability, it offers a blend of performance and practicality. The Corolla's advanced safety features, including adaptive cruise control and lane-keeping assist, ensure a safe drive. Its competitive pricing and excellent resale value make it an attractive option for those looking to maximise their savings.
Features: Fuel-efficient, reliable, advanced safety features.
Price: Competitive pricing with excellent resale value.
Benefits: Low running costs and high reliability make it an excellent choice for buyers.
Mazda3
The Mazda3 is celebrated for its stylish design and responsive handling. Its high-tech interior, featuring a user-friendly infotainment system and premium materials, adds to its appeal. The Mazda3 is also equipped with a range of safety features, such as blind-spot monitoring and rear cross-traffic alert, enhancing its value as a family car. Affordable and available in various models, it suits different budgets.
Features: Stylish design, responsive handling, high-tech interior.
Price: Affordable with a range of models to suit different budgets.
Benefits: Great driving experience and strong safety ratings.
Hyundai i30
The Hyundai i30 offers a spacious interior and good fuel economy, making it a practical choice for daily commutes and long drives. Its modern technology, including a touchscreen infotainment system and smartphone connectivity, ensures a connected and enjoyable driving experience. The comprehensive warranty and value for money make the i30 a favourite among those seeking a balance between performance and affordability.
Features: Spacious interior, good fuel economy, modern technology.
Price: Offers excellent value for money with a comprehensive warranty.
Benefits: Ideal for those seeking a balance between performance and affordability.
In addition to its comprehensive warranty and value for money, the Hyundai i30 is a favourite among those seeking a balance between performance and affordability.
For more insights on whether to buy your Hyundai car outright or opt for a novated lease for financial benefit, read "Is it Cheaper to Buy a Car Outright or Novated Lease?"
Honda Civic
The Honda Civic stands out with its sporty design and powerful engine options. Its advanced infotainment system, featuring a touchscreen display and smartphone integration, provides a seamless driving experience. The Civic's higher price point is justified by its build quality and substantial resale value, making it a worthwhile investment for those looking for a car with a sporty edge and reliable performance.
Features: Sporty design, powerful engine options, advanced infotainment system.
Price: Slightly higher price point but justified by the features.
Benefits: Excellent build quality and substantial resale value.
Volkswagen Golf
The Volkswagen Golf offers a premium feel with advanced safety features and efficient engines. Its higher-end pricing is complemented by a superior driving experience, making it a desirable option for those willing to invest in quality. The Golf's reputation for quality and driving dynamics ensures it remains a top choice for novated leasing.
Features: Premium feel, advanced safety features, efficient engines.
Price: Higher-end pricing but offers a premium experience.
Benefits: Known for its quality and driving dynamics.
Comparison of Top Models
| Model | Features | Price | Benefits |
|---|---|---|---|
| Toyota Corolla | Fuel-efficient, reliable, safety features | Competitive | Low running costs, high reliability |
| Mazda3 | Stylish, responsive handling, high-tech | Affordable | Great driving experience, safe |
| Hyundai i30 | Spacious, good fuel economy, modern tech | Value for money | Balanced performance and affordability |
| Honda Civic | Sporty, powerful engine, advanced infotainment | Higher price | Excellent build quality, strong resale |
| Volkswagen Golf | Premium feel, safety features, efficient | Higher-end | Quality, driving dynamics |
Expert Recommendations
When choosing the best small car for novated leasing, experts recommend focusing on models with extensive features in a compact package. Popular small car brands like Toyota, Mazda, and Hyundai are known for their reliable and well-equipped vehicles. For instance, the Toyota Corolla, Mazda3, and Hyundai i30 are highly regarded for their superior safety ratings, advanced technology, and overall value. These cars often have an extended warranty, providing peace of mind and added protection.
Additionally, whether you prefer a small sedan or a hatchback, consider the available options within these brands. Look for advanced driver assistance systems, modern infotainment, and spacious interiors to enhance your driving experience. By selecting a car with a combination of reliability, safety, and modern conveniences, you can ensure a satisfying and cost-effective ownership experience.
How to Choose the Right Car for Novated Leasing?
Assess Your Needs: Consider factors like fuel efficiency, maintenance costs, and how you plan to use the car. For instance, if you need a car for daily commuting, focus on fuel-efficient models like the Toyota Corolla or Mazda3.
Compare Features: Compare each model's features to find the best match for your preferences. For example, the Hyundai i30 provides a spacious interior, while the Honda Civic boasts a sporty design.
Budget Considerations: Consider the total cost of ownership, including financing, insurance, and running costs. Evaluate how these expenses fit within your budget.
Test Drive: Always take the car for a test drive to ensure it meets your expectations. This step is crucial for understanding the driving experience and comfort level.
Choosing Novated Finance AU for Small Cars
At Novated Finance Australia, we have a streamlined process for hassle-free approvals that could see you approved for your dream car within a few hours.
With us, you get:
Tax Savings: Using pre-tax dollars reduces your taxable income, leading to substantial savings.
Convenience: Finance and running costs in one fixed payment, bundling all car-related expenses like maintenance, insurance, tyres, and more.
Flexibility: Choose any car that suits your needs and preferences without being restricted by traditional financing options.
Ownership: With novated leasing, you own the car at the end of the period, typically through a bubble payment. In contrast, with standard leasing, you return the car and upgrade to another one, and you never really own the vehicle.
Opting for a novated lease allows you to enjoy these benefits with the added advantage of reduced taxable income, making it a smart and financially savvy choice.
Inclusions with Novated Leasing
When opting for a novated lease, you can expect comprehensive coverage that includes various essentials:
Charging: For electric vehicles like the MG4 Excite Electric, the leasing package can include home charging solutions and access to public charging networks.
Service and Maintenance: Regular servicing and maintenance are covered, ensuring your car remains in top condition without unexpected costs.
Tyres: Tyre replacements and repairs are included, so you don't have to worry about additional expenses.
Insurance: Comprehensive car insurance is part of the package, providing peace of mind and financial protection.
Wrapping It Up
Choosing the right small car for novated leasing can lead to significant savings and a hassle-free ownership experience. Each model offers unique benefits, so take your time to compare and make an informed decision.
Remember, with novated leasing, you are not just getting a car; you are securing a package that covers all your car-related expenses. This makes it a convenient and cost-effective option, especially with tax benefits.
If you're ready to explore your options and start saving, visit Novated Finance Australia and get approved for your dream car today! Our team is here to guide you through every step of the process, ensuring you make the most of your novated leasing benefits.
Frequently Asked Questions
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Description text goes hereA novated lease is a three-way agreement between you, your employer, and a leasing provider. It allows you to bundle all car expenses into one payment from your pre-tax salary, potentially saving on tax.
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Yes, electric SUVs like the Volvo XC40 Recharge qualify for novated leasing and may provide additional tax savings due to FBT exemptions.
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We offer a variety of luxury SUVs, including electric and hybrid models, so you can find one that meets your preferences and lifestyle.
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Novated leasing can reduce your taxable income by packaging vehicle expenses into a pre-tax payment, which is particularly beneficial for luxury SUVs like electric or hybrid models.
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Yes, we offer flexible lease terms to ensure your lease fits your personal and professional needs.