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.
Common questions
Is a novated lease cheaper than buying with cash?
Often, because you pay from pre-tax salary and claim the GST off the car and its running costs. But cash has no interest cost at all. The gap depends on your tax rate, the car and how long you keep it. The calculator shows your real number.
Novated lease or a car loan?
A car loan is paid from after-tax money and does not bundle running costs. A novated lease uses pre-tax salary and packages fuel, servicing, registration and insurance. For most salaried employees the lease comes out ahead, especially on an EV.
When is buying outright better?
If you have the cash, plan to keep the car for many years past a lease term, drive very little, or your employer does not offer salary packaging, buying can be simpler and cheaper overall.
What about at the end of the term?
With a lease there is a residual to pay if you want to own the car. With a loan or cash the car is simply yours. Factor the residual in when you compare, which our quote does for you.