Both options are great ways to reduce the large upfront cost of buying a car; but what’s best for you? We’ve put together a summary of some of the key differences between the two to help you make an informed decision when the time is right! Novated Leasing Calculator

When thinking about leasing a car or taking out a car loan, the first thing that comes to mind is: “How much will I have to fork out each month?” Leasing a car often has lower monthly repayments as some of the payment might come from your pre-tax wage and you are only paying for its use, rather than paying off the car itself. However, they typically come with higher finance rates so make sure you do your homework! In the long run, if you shop around for the right car loan rate, your repayments could be comparable. And since a car loan enables you to ‘own’ the car, this helps you build equity. Plus you can sell it down the track to recover some costs!



Leasing a car can also come with additional fees and charges, particularly from wear and tear costs and exceeding the amount of kilometres you’re allowed to drive. If you’d like to use your car for weekend road trips and family holidays or, you’re prone to a ding or two – leasing is probably not the best option for you.

As we already mentioned, taking out a car loan means you own the car. So whether it’s adding tinted windows or a new set of wheels, you can modify the car to suit your needs. In contrast, when it comes to leasing yo

There can be added cost savings when it comes to taking out a novated lease, for example the GST saving when leasing a new car. Additionally, monthly repayments come out of your pre-tax salary which reduces your taxable income, meaning more money in your pocket each pay day. Depending on your employer’s Salary Packaging, you may also save on the running costs of your car like petrol and maintenance.

Buying a car allows you to shop around and compare car loans that suit your financial and personal needs including a choice between unsecured and secured loans. Plus you can purchase your car from wherever you like, so you have to power to drive a hard bargain!



In addition to choosing a car loan of your choice, you also have the freedom to choose your own car insurance policy.

Whether it’s taking out a car loan or leasing a car, make sure you review your options carefully and choose the option that’s right for you.