Station Wagons for Novated Lease: Practical Picks That Beat SUVs on Value

Many drivers are looking for space without wanting an SUV. A station wagon offers more boot room than a hatchback and a lower centre of gravity than a 4WD. For people who want comfort, luggage capacity, and better fuel use than larger cars, wagons can deliver all of that in one car.

A station wagon for novated lease gives you tax benefits, running cost bundling, and better flexibility than owning outright. If you regularly travel for work, carry equipment, or need space for a growing family, wagons offer long-term value, especially when packaged through your salary.

What Defines a Station Wagon?

A station wagon is a car that combines the body of a sedan with an extended boot area, giving you more cargo space without increasing the overall height like an SUV. The roofline continues all the way to the back of the car, and the boot opens vertically like a hatch.

Wagons are built on sedan platforms, so you get a lower ride, tighter handling, and better fuel economy. They're ideal for:

• Long-distance commuters

• Field-based workers

• Families who don’t want an SUV

• People transporting gear, samples, or stock

Most wagons also come with roof rails, split-fold seats, and cargo barriers—features often used by professionals in health, sales, or field services.

Best Station Wagons 2025 for Novated Lease

The best wagons for novated lease combine low running costs, safety features, and a price that fits under employer thresholds for salary packaging. Here are some top picks currently available or coming in 2025.

Subaru Station Wagon (Outback)

The Subaru station wagon is better known as the Outback. It blends AWD capability with the profile of a long-body car. The Outback is commonly leased by drivers in healthcare, education, and sales roles across Australia.

• Symmetrical All-Wheel Drive

• Up to 2,000L of cargo space with seats folded

• Pre-packaged servicing available

• Tow capacity of 2,000kg

Its all-wheel drive is helpful for regional drivers in VIC, NSW, or WA who experience wet or unsealed roads. The station wagon for novated lease format helps manage servicing and fuel through pre-tax salary deductions.

Toyota Station Wagon (Corolla Touring)

The Toyota station wagon option is the Corolla Touring, available in hybrid form. It suits drivers wanting a low-emission lease option without going full EV.

• Hybrid powertrain with fuel use under 4.5L/100km

• 5-star ANCAP safety rating

• Leaseable under capped-cost maintenance

• Rear boot capacity of 598L

This is one of the few hybrid station wagons available for lease in Australia, making it ideal for cost-conscious workers who drive daily across metro areas.

Ford Station Wagon (Focus Wagon – Europe-sourced)

Ford no longer offers a station wagon locally, but lease providers may be able to source the Ford Focus Wagon through European channels. This can be structured into a novated lease with proper supplier support.

• Compact turbo engine

• Available in ST-Line trim

• Cargo space around 575L

• Optional driver assistance packages

The Ford station wagon has a strong following among people who don’t want an SUV but still need space. It’s worth asking your lease provider if they can import or source this model via fleet partners.

Why Wagons Work for a Novated Lease

Here are a few reasons why Wagons work for a Novated Lease:

Lower Fuel Use

Most station wagons have better fuel economy than mid-size SUVs because of their aerodynamics and weight. This lowers your fuel card cost when added to a lease.

Better Boot Space Than Sedans or Hatches

Wagons give you more room than hatchbacks without the bulk of an SUV. This is useful for sales reps, mobile tradies, or workers with equipment.

Suits Long-Term Use

Wagons handle wear better than small cars and ride smoother than utes. For 3- to 5-year leases, this means fewer mid-term servicing issues.

Lease Inclusions Match Usage

Your novated lease for a station wagon can include:

• Registration

• Insurance

• Fuel cards

• Servicing and tyres

• Roadside assistance

This makes it easier to budget and removes lump-sum costs from your personal spending.

New Wagon Cars: What’s Changing in 2025?

Car makers are bringing new wagons to Australia in response to demand from families and business users. Many of the new wagon cars feature:

• Hybrid or plug-in hybrid drivetrains

• Higher ground clearance for light gravel use

• Lower emissions to suit fleet and FBT rules

• Upgraded tech for road safety

In 2025, expect to see expanded trims for the Subaru Outback, additional features on the Toyota Corolla Touring, and possible European imports from Peugeot or Skoda.

Most of these will fall under the price cap for FBT-efficient packaging. If you’re looking to lease one under salary sacrifice, speak to your employer or lease provider early.

Hybrid Wagons: A Growing Category

The hybrid station wagon segment is still small in Australia, but it’s growing. Hybrid wagons help you reduce fuel use and may lower your post-tax lease cost.

Lease quotes for hybrid wagons typically include:

• Lower FBT due to emissions profile

• Reduced fuel card top-ups

• Lower servicing frequency

• Options for shorter lease terms

The Toyota Corolla Touring Hybrid is the main option currently available, but more manufacturers are expected to introduce hybrid wagons in late 2025 and 2026.

What to Consider Before Leasing a Station Wagon

Here are some key points to consider:

Work vs Personal Use

Make sure your employer supports mixed-use novated leases. Most station wagons are used both during work hours and after, especially for school runs or holidays.

Driving Distance

Wagons suit drivers doing 15,000 to 35,000km per year. If you drive more than that, a lease with service inclusions is important.

Boot Use and Payload

Not all wagons are built to carry tools or heavy gear. Confirm that the model you choose fits your use. The Subaru Outback is better for towing; the Corolla is better for efficiency.

Residual Value

Wagons usually have better depreciation than hatchbacks. Ask your lease provider about residual value at lease end, especially for a 4- or 5-year term.

Where Most Blogs Fall Short

Most blogs talking about station wagons don’t explain how novated leases change the cost structure. They rarely include:

• Pre-tax vs post-tax salary impacts

• Leaseable hybrid wagons

• Service inclusions under lease

• Employer restrictions on model types

• How boot capacity affects packaging value

This blog closes that gap by helping you align the vehicle with your lease needs, not just the badge or badge popularity.

Ready to Lease a Wagon? Get a Custom Quote

If you’re comparing hatchbacks, SUVs, and wagons, the station wagon sits in the middle, offering comfort, space, and better fuel use.

A station wagon for novated lease gives you predictable costs, salary packaging benefits, and the flexibility to use the car for both work and life. If you need more room than a hatch but don’t want the size or fuel cost of an SUV, a wagon could be the right match.

Book a consultation to see how a wagon fits into your salary, kilometre range, and employer policy. Novated Finance Australia helps you compare options, estimate your tax savings, and select a lease that works for your daily use.

FAQs

• Do all station wagons qualify for salary packaging?

  Not all. The car must meet price limits and your employer’s vehicle list.

• Are wagons more stable than SUVs in wet or windy conditions?

  Often yes. Their lower profile gives better handling in rough conditions.

• Can a wagon be fitted with a cargo barrier under a lease?

  Yes, if included in the initial lease quote. It helps with safety when carrying gear.

• Do wagons cost more to insure than sedans?

  Not usually. Insurance depends more on driver profile and car value than shape.

• Is a wagon a good alternative to a van for mixed use?

  Yes. If you don’t need commercial plates, wagons are a flexible work + personal option.