You know how when you purchase a car, you'd be familiar with the two main payment options: pay outright with cash or take out a car loan.
Did you know there’s a third option that could save you thousands and cover all your running costs in one go. It’s called novated leasing, and it’s already helping thousands of Australians drive smarter.
Why This Decision Matters to You.
A car is one of the biggest purchases you’ll make outside of buying a home. It's often coined the second biggest expense one will make in their life.
The wrong choice could leave you paying far more than you need to. It’s not just about the sticker price, the ongoing costs like rego, insurance, and servicing quickly add up.
We help change how you pay for your car with novated leasing, often turning those costs into pre-tax payments and reducing your taxable income.
1. No Upfront Cost
Buying outright means paying the full purchase price in one go, often tens of thousands of dollars upfront. That money leaves your account immediately, and you still need to budget for ongoing costs on top.
With novated leasing, there’s no large lump sum to part with.
Instead, the cost of the car is spread over the lease term, and payments are deducted from your pre-tax salary. This approach keeps more money in your pocket for other priorities while still getting you behind the wheel of the car you want.
2. Access Tax Benefits
Paying cash offers no tax perks.
You’ve already paid income tax on the money you’re using, and GST applies to most car-related costs. That's two lots of tax!
You can access significant tax advantages with novated leasing because your lease payments and running costs are deducted from your pre-tax salary. This reduces your taxable income and can also lead to GST savings, meaning less money going to the tax office and more staying with you.
3. Reduced & Bundled Running Costs
How much does the cost of fuel sting these days! When you buy with cash, every expense after the purchase, from registration and insurance to servicing and fuel, is paid from after-tax income. These costs can quickly add up and are often unpredictable.
With a novated lease, many of these running costs can be bundled into your lease budget and paid from your pre-tax income. In many cases, GST savings also apply, creating further reductions in your overall car expenses.
A Real-World Example
Take the 2025 Tesla Model Y Rear-Wheel Drive.
Paying cash means handing over the full $64,373 upfront and then managing all running costs separately. With a novated lease through Remunerator, you could drive from $170 a week* plus running costs, with the option to include things like rego, insurance, and servicing in your budget.
The result? It is $8,628 cheaper to own compared to paying cash.
Who Can Benefit?
If you’re a salaried employee and your employer offers salary packaging, you can access novated leasing. It works for both new and used cars, and the savings can be significant whether you drive a lot or a little.
Why It Works So Well for Electric Vehicles
Electric vehicles like the Tesla Model Y can be even more cost-effective with novated leasing. The Electric Car Discount means eligible EVs may be exempt from certain taxes, and with no fuel costs plus lower servicing needs, your running expenses can be much lower.
The Bottom Line
When you factor in tax savings, GST benefits, and the ability to bundle your running costs into one easy payment, buying outright often can’t compete.
If you’re planning your next car, don’t just focus on the price tag, think about the smartest way to pay for it. Novated leasing could be the solution that puts thousands back in your pocket.
Find out your potential savings. Speak with a Remunerator Novated Leasing Specialist today.
*Quoted weekly price is based on an annual salary of $100,000, finance term of 60 months, VIC registration, and 15,000km/year. Pricing excludes weekly running costs. Actual pricing will vary depending on personal circumstances.