The honest comparison
Novated lease vs buying or a car loan
A novated lease is not automatically cheaper than buying. It wins in specific situations and not in others. Here is the honest comparison, so you can see which one is right for you.
The three ways to pay
Cash
No interest, but a big up-front hit, and you pay with after-tax dollars and full GST.
Car loan
Spreads the cost, but from after-tax pay, with running costs still on you separately.
Novated lease
Pre-tax salary, GST off the car and its running costs, everything in one payment.
Where a novated lease wins
- You are a salaried employee with packaging available
- You want fuel, servicing, registration and insurance in one payment
- You are looking at an EV, where the FBT exemption is a large saving
- You value not paying GST on the car or its running costs
Where buying wins
- You have the cash and want no finance cost at all
- You will keep the car well beyond a typical lease term
- You drive very little, so bundled running costs add little
- Your employer does not offer salary packaging
See it in your own numbers
The only honest answer is your answer. Put your salary, car and driving into the calculator and it shows the weekly cost, the tax and GST saved, and every fee, so you can compare a lease against buying with real figures rather than a sales pitch. Unlike most providers, we show the true effective rate and charge one flat $1,500 fee, so the comparison is fair.