Which Car is Best for a Novated Lease?
When considering a novated lease, choosing the right car is crucial to maximising your financial benefits and ensuring a smooth leasing experience. Whether you prioritise eco-friendliness, fuel efficiency, or practicality, selecting the ideal car for your lease will depend on several factors such as your budget, lifestyle, and long-term financial goals.
In this guide, we’ll explore the best cars for novated leases in Australia for 2025, including a variety of options to suit different preferences. Whether you're after electric vehicles, practical SUVS, or versatile utes, we've got you covered!
Best Cars for Novated Lease in 2025
As we move into 2025, there are several excellent vehicle options for novated leases that offer tax savings, fuel efficiency, and great value. Below are some of the top picks for novated leases:
1. Tesla Model Y
A popular electric SUV, the Tesla Model Y stands out for its impressive range and advanced tech features. If you’re keen on reducing your carbon footprint and want to enjoy the benefits of an electric vehicle, the Tesla Model Y is an excellent option. Its low running costs and tax advantages make it a solid choice for long-term leases, especially as electric vehicles become more tax-efficient.
Key Benefits: Tax benefits for electric vehicles, excellent range, advanced safety features, and low maintenance costs.
2. Tesla Model 3
The Tesla Model 3 is a compact electric sedan known for its performance and sleek design. Just like the Model Y, the Model 3 offers significant tax advantages due to its electric nature, making it a top contender for a novated lease. With its high performance and affordability, the Tesla Model 3 is ideal for those looking to lease an eco-friendly vehicle with great financial benefits.
Key Benefits: Lower upfront costs compared to other Teslas, great driving experience, tax savings, and minimal maintenance.
3. BYD ATTO 3
For those seeking a more affordable electric SUV, the BYD ATTO 3 is a great option. It offers a wide range of features without the hefty price tag of other electric vehicles. This budget-friendly electric SUV is perfect for those wanting the benefits of an electric vehicle without paying a premium.
Key Benefits: Affordable pricing, good features, practical for families, and eco-friendly.
4. Ford Ranger
For those who need a versatile vehicle, the Ford Ranger is a solid choice. This dual-cab ute is perfect for both work and leisure, offering reliability and durability. Its versatility, combined with its popularity in Australia, makes the Ford Ranger an excellent choice for a novated lease.
Key Benefits: Ideal for both personal and professional use, strong towing capacity, durable, and popular among Australian drivers.
5. Mitsubishi Outlander PHEV
A plug-in hybrid that combines eco-friendliness with practicality, the Mitsubishi Outlander PHEV is perfect for those who want to switch between electric and petrol power. It’s a great choice for individuals looking to lower their emissions without sacrificing the long-distance capabilities of a petrol vehicle.
Key Benefits: Dual-fuel option, good for city and long-distance driving, tax savings for hybrid vehicles.
6. Mazda CX-5
The Mazda CX-5 is a compact SUV that offers excellent fuel efficiency and a comfortable ride. Known for its reliability, durability, and strong resale value, the Mazda CX-5 is a favourite among Australian drivers looking for a practical leasing option.
Key Benefits: Great fuel economy, reliable, durable, and low maintenance costs.
7. Toyota Land Cruiser Prado
For off-road enthusiasts, the Toyota Land Cruiser Prado is one of the best options available. This robust SUV is built for superior off-road capabilities, making it ideal for those who love to explore the Australian outback. It’s also known for its strong resale value and reliability, making it a great long-term leasing option.
Key Benefits: Excellent off-road capabilities, strong resale value, and reliability.
Factors to Consider When Choosing a Vehicle for a Novated Lease
Choosing the best car for a novated lease requires consideration of several important factors. Here are the key elements to evaluate before making your decision:
1. Budget
Make sure the vehicle fits within your budget for both monthly lease payments and additional running costs. It's essential to choose a car that aligns with your financial capacity, including your pre-tax salary and the potential savings from the lease.
2. Fuel Efficiency
Fuel costs are a significant consideration, especially for long-term leases. Electric vehicles like the Tesla Model Y or BYD ATTO 3 offer substantial savings in fuel costs, making them ideal for budget-conscious individuals looking to save on running expenses.
3. Tax Benefits
If tax savings are a major consideration, opting for an electric vehicle or a plug-in hybrid can offer significant tax advantages due to reduced fringe benefits tax (FBT). Vehicles like the Tesla Model 3 and Mitsubishi Outlander PHEV can offer great financial benefits over the lease term.
4. Resale Value
While novated leases often don’t involve ownership at the end of the lease term, considering the resale value can still be important. Cars like the Toyota LLand CruiserPrado and Mazda CX-5 are known for their strong resale value, which might make them a better option for those considering future vehicle upgrades.
5. Practicality
Consider your lifestyle needs. For example, a family-friendly SUV like the Mazda CX-5 or Mitsubishi Outlander PHEV may be ideal for those needing space and comfort, while a Ford Ranger might be better suited for someone requiring a workhorse vehicle for both personal and professional use.
Conclusion
The best car for a novated lease ultimately depends on your specific needs and financial situation. Whether you're looking for the tax benefits of electric vehicles like the Tesla Model Y and Tesla Model 3, the versatility of the Ford Ranger, or the off-road reliability of the Toyota Land Cruiser Prado, there’s a car for every budget and lifestyle.
When choosing a vehicle for your novated lease, consider factors like your budget, fuel efficiency, tax advantages, and long-term financial goals. This will help you make the most out of your lease and enjoy significant financial benefits.
At Novated Finance Australia, we can provide you with the information and help you make an informed decision.
FAQs
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The best car for a novated lease depends on your needs. Popular options include Tesla Model Y (electric), Ford Ranger (versatile ute), and Mazda CX-5 (fuel-efficient SUV).
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Yes, electric vehicles like the Tesla Model Y and BYD ATTO 3 are excellent choices for a novated lease, offering significant tax savings and lower running costs.
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Consider your budget, fuel efficiency, tax benefits, resale value, and practicality when selecting a vehicle for your novated lease.
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Yes, hybrid vehicles like the Mitsubishi Outlander PHEV are ideal for those looking to balance eco-friendliness and practicality while enjoying tax benefits.
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Opting for electric vehicles or fuel-efficient cars can help reduce running costs and offer tax savings through reduced FBT.