The Most Popular Vehicles for Novated Leasing in Australia
Novated leasing has become one of the most popular ways for Australians to finance their next vehicle, offering significant tax savings and bundled running costs. Whether you’re looking for a sleek electric vehicle, a reliable family SUV, or an affordable hybrid, some cars stand out as the most popular choices for novated leasing.
Top 7 Most Popular Vehicles for Novated Leasing in Australia
Let’s take a look at the most popular novated leasing vehicles in Australia, why they’re so sought after, and how novated leasing helps make these vehicles more affordable.
1. Tesla Model 3
It’s no surprise that the Tesla Model 3 is one of the most popular vehicles for novated leasing. With its sleek design, advanced technology, and zero emissions, the Model 3 appeals to drivers who want a luxury car while being environmentally conscious.
Why it’s popular:
- Electric Power: The Model 3 is fully electric, meaning no more trips to the petrol station and lower running costs compared to petrol-powered vehicles.
- Tax Savings: Electric vehicles (EVs) leased through a novated lease can be even more tax-efficient due to potential exemptions from Fringe Benefits Tax (FBT) in some cases.
- Cutting-edge technology: Tesla’s renowned Autopilot system, over-the-air software updates, and minimalistic interior design make it a high-tech driving experience.
2. Toyota RAV4 Hybrid
The Toyota RAV4 Hybrid has been a top choice for many Australians, especially for those looking for a balance of fuel efficiency, reliability, and space. This mid-size SUV is perfect for families, commuters, and anyone needing extra room without sacrificing environmental friendliness.
Why it’s popular:
- Hybrid Efficiency: The RAV4 Hybrid offers impressive fuel economy, saving drivers money on petrol while reducing emissions.
- Spacious and Versatile: As an SUV, the RAV4 Hybrid provides ample cargo space and comfortable seating, making it ideal for long road trips or family adventures.
- Toyota Reliability: Toyota’s reputation for building long-lasting, dependable vehicles is a major draw for those who want a reliable car for the long term.
3. Hyundai Ioniq 5
Another strong contender in the EV market, the Hyundai Ioniq 5 has quickly become one of the most popular novated leasing choices for electric vehicle enthusiasts. Its futuristic design, spacious interior, and long-range capabilities make it a top pick for drivers looking to make the switch to electric.
Why it’s popular:
- Impressive Range: The Ioniq 5 offers a competitive electric range, with the 2025 Extended Range variant providing up to 570 km on a full charge.
- Spacious Interior: With its SUV-like dimensions and roomy cabin, the Ioniq 5 comfortably accommodates both drivers and passengers.
- Innovative Features: The Ioniq 5 comes packed with advanced features, including fast charging capabilities, a 12.3-inch digital display, and eco-friendly materials.
4. Toyota Corolla Hybrid
The Toyota Corolla Hybrid remains one of the most popular choices for novated leasing, thanks to its affordable pricing, excellent fuel efficiency, and compact size. Whether you're driving to work or around the city, the Corolla Hybrid provides the perfect balance of practicality and sustainability.
Why it’s popular:
- Hybrid Powertrain: With its hybrid engine, the Corolla Hybrid delivers excellent fuel efficiency, reducing fuel costs for drivers.
- Affordable Pricing: The Corolla is known for being budget-friendly, and with novated leasing, it becomes even more cost-effective through salary packaging.
- Toyota’s Reputation: The Corolla has a long history of reliability and low running costs, making it a safe choice for anyone looking to save on both car costs and taxes.
5. Kia Sportage
For those who want an SUV that’s both stylish and practical, the Kia Sportage is a top contender for novated leasing. It offers a bold design, comfortable interior, and advanced technology, making it a great choice for individuals and families alike.
Why it’s popular:
- Stylish Design: The latest Kia Sportage boasts a sharp, modern design that stands out on the road.
- Advanced Tech: The Sportage is packed with features like wireless Apple CarPlay, Android Auto, and driver-assist systems that make driving easier and safer.
- Roomy and Comfortable: With ample space for passengers and cargo, the Sportage is perfect for long drives and daily commutes.
6. Mitsubishi Outlander PHEV
The Mitsubishi Outlander Plug-in Hybrid Electric Vehicle (PHEV) is another popular option for those seeking the benefits of an SUV with the added efficiency of a plug-in hybrid. The Outlander PHEV offers both electric and petrol power, providing flexibility for drivers who want to reduce fuel consumption.
Why it’s popular:
- Plug-in Hybrid Flexibility: With its plug-in hybrid powertrain, drivers can enjoy emissions-free driving on shorter trips while having the backup of a petrol engine for longer journeys.
- SUV Versatility: The Outlander PHEV offers all the benefits of an SUV—ample space, high seating position, and plenty of storage—while being kinder to the environment.
- Long Electric Range: With the ability to drive short distances on electric power alone, it’s ideal for city commutes without using a drop of petrol.
7. Mazda CX-5
The Mazda CX-5 has long been a favorite among Australian drivers, and it’s just as popular when it comes to novated leasing. This mid-size SUV is known for its refined driving experience, premium interior, and advanced safety features.
Why it’s popular:
- Smooth Driving Experience: The CX-5 offers a sporty yet comfortable drive, with responsive handling and a quiet cabin.
- Premium Interior: Mazda’s focus on high-quality materials and a well-designed interior makes the CX-5 feel more upscale than many competitors in its class.
- Safety First: With Mazda’s i-Activsense safety suite, including blind-spot monitoring and autonomous emergency braking, the CX-5 is equipped to keep you safe on the road.
Why These Vehicles Are Popular for Novated Leasing?
So, why are these vehicles among the most popular choices for novated leasing? Here are a few reasons why Australians gravitate toward these models:
1. Tax Savings
One of the key benefits of novated leasing is that lease payments and running costs are made with pre-tax salary, reducing taxable income and resulting in significant tax savings. For vehicles like the Tesla Model 3 and Mitsubishi Outlander PHEV, these savings can make owning a more premium or fuel-efficient car more affordable.
2. Bundled Running Costs
Novated leases allow drivers to bundle running costs like fuel, charging, insurance, maintenance, and registration into one simple payment. This makes budgeting easier, especially for vehicles with higher upfront costs or more advanced features.
3. Flexibility
Many of the most popular novated leasing vehicles are available in both electric and hybrid variants, offering flexibility for those looking to reduce their environmental impact while maintaining versatility for longer trips or off-road driving.
Conclusion: Get Your Popular Novated Lease Vehicle Today
These vehicles are among the most popular novated lease choices for a reason—they offer a combination of style, technology, and cost-efficiency that appeals to a wide range of drivers.
Whether you’re after a high-tech EV like the Tesla Model 3 or a reliable hybrid like the Toyota Corolla, novated leasing makes driving these vehicles more affordable through salary packaging.
If you’re ready to take the next step, consider using a novated lease calculator to see how much you could save on your next vehicle. With the right car and the right lease, you’ll be driving off in one of these popular models while enjoying the financial benefits of novated leasing.