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Make the comparison fair
Choose the same car, kilometres and ownership period on both sides. Include interest, establishment and administration fees, insurance, registration, electricity, servicing and the amount required to own or sell the car at the end.
For the lease, allow for changes in tax, HELP and any post-tax contribution. For the loan, allow for repayments and the remaining balance. Resale value belongs on both sides if you plan to sell.
Use the novated lease calculator to estimate the salary deduction and HELP effect separately from the finance and ownership costs.
| Cost or question | Novated lease | Car loan |
|---|---|---|
| Finance and fees | Provider quote and lease schedule | Loan rate and fee schedule |
| Tax and HELP effect | Model deductions and reported benefit | Usually paid from after-tax cash |
| End-of-term amount | Residual payment and conditions | Remaining loan balance |
| Changing jobs | Check employer transfer and exit terms | Check loan conditions |
A smaller monthly payment can still cost more
Suppose two fictional five-year quotes leave the same car owned at the end. One has a $550 monthly out-of-pocket lease cost after the tax effects and a $15,000 end payment. The other has $750 monthly loan payments and no remaining loan balance.
Across 60 months, the first uses $48,000 and the second $45,000. The lease looks $200 cheaper each month but uses $3,000 more in this chosen example. Equal running costs and equal resale values are left out of both sides. Actual quotes need their own complete costs and tax treatment.
| Fictional five-year comparison | Lease | Loan |
|---|---|---|
| Monthly cash cost | $550 | $750 |
| 60 monthly payments | $33,000 | $45,000 |
| End payment or remaining balance | $15,000 | $0 |
| Total before equal running costs | $48,000 | $45,000 |
The tax exemption has conditions
A qualifying electric car may be exempt from FBT under current rules. The benefit can still be reportable and relevant to HELP or the surcharge income test. A plug-in hybrid in a new arrangement after 1 April 2025 generally does not receive the same treatment.
September 2026 Treasury proposals would change electric car FBT treatment in future years. This guide distinguishes those proposals from current eligibility; it does not assume they will take effect unchanged.
Get a quote you can audit
A useful quote shows the finance rate, fees, annual deductions, expected reportable benefit and residual. If you cannot see those separately, ask for a clearer breakdown before comparing.
The salary calculator can test the tax side using the quoted deduction and reported benefit. It does not calculate a lease price or recommend a provider. The better choice depends on the complete costs and your need for flexibility.
Sources you can check
Sources checked for this page on 3 October 2026. Statistics keep their own measurement dates.