Car Leasing Australia
Leasing could be your smartest way into a new car. Lower monthly payments, potential tax benefits, and the flexibility to drive newer vehicles more often. Whether you're a business owner, employee, or individual - we'll help you find the right lease.
Business and personal leasing options. No upfront fees for our service.
What is Car Leasing?
Car leasing is an alternative to buying a vehicle outright or financing a purchase with a traditional car loan. Instead of paying to own the car, you pay for the right to use it for a fixed period - typically 2 to 5 years.
Think of it like a long-term rental with fixed monthly payments. At the end of the lease term, depending on the lease type, you can return the vehicle, extend the lease, or purchase the car by paying a residual amount.
Leasing is particularly popular with businesses due to potential tax advantages and the ability to keep vehicles off the balance sheet. For individuals, novated leases offer tax benefits through salary packaging.
Leasing vs Buying: What's the Difference?
Understanding the key differences helps you make the right choice
Leasing
- Lower monthly payments
- Drive newer cars more often
- Potential tax advantages for business
- No depreciation risk
- Fixed costs for budgeting
- Kilometre limits apply
- No ownership (unless you buy out)
Buying (Loan)
- Own the car from day one
- No kilometre restrictions
- Modify the car as you wish
- Build equity in an asset
- Keep as long as you like
- Higher monthly payments
- Responsible for depreciation
Not sure which is right for you? Talk to our team and we'll help you decide.
Types of Car Leases
Different lease structures suit different needs
Operating Lease
Rent a vehicle for a set term with no ownership at the end. Ideal for businesses wanting off-balance sheet financing and fleet flexibility.
- Lower monthly payments
- Off-balance sheet
- Hand back at end of term
- Maintenance can be included
Finance Lease
Finance a vehicle with the option to purchase at the end. The lender owns the car during the lease, with ownership transferring after the residual payment.
- Claim GST upfront (business)
- Tax-deductible payments
- Residual payment at end
- Own the car after final payment
Novated Lease
A three-way agreement between you, your employer, and a finance company. Your employer deducts lease payments from your pre-tax salary.
- Pre-tax salary deductions
- Reduce taxable income
- Running costs included
- Portable between employers
Benefits of Leasing
Why many Australians choose to lease their vehicles
Lower Monthly Payments
Lease payments are typically lower than loan repayments because you're not paying off the full value of the car - just the depreciation during your lease term.
Drive New Cars More Often
Leasing makes it easier to upgrade to a new vehicle every few years. Enjoy the latest safety features, technology, and fuel efficiency without the hassle of selling.
Potential Tax Benefits
Business leases can offer significant tax advantages. Lease payments are typically tax-deductible, and GST can often be claimed upfront on finance leases.
Simplified Budgeting
Fixed monthly payments make budgeting straightforward. Some leases include maintenance and servicing, so you know exactly what your vehicle will cost.
Who is Leasing For?
Leasing suits a variety of situations
Businesses & ABN Holders
Keep vehicles off your balance sheet, claim tax deductions, and maintain a modern fleet without large capital outlays.
Employees (Novated Lease)
Reduce your taxable income by paying for your car from pre-tax salary. Running costs like fuel, servicing, and insurance can also be included.
Those Who Like New Cars
If you prefer driving the latest models with warranty coverage and modern features, leasing lets you upgrade regularly without the depreciation worry.
Fleet Managers
Manage company vehicles efficiently with predictable costs, maintenance packages, and easy end-of-term vehicle turnover.
Lease vs Loan: Quick Comparison
See how leasing compares to a traditional car loan at a glance
| Factor | Lease | Car Loan |
|---|---|---|
| Monthly Payments | Typically lower | Typically higher |
| Ownership | No (unless finance lease with residual) | Yes, from day one |
| Flexibility to Upgrade | Easy at end of term | Sell or trade-in required |
| Kilometre Limits | Yes, excess km fees may apply | No restrictions |
| Modifications | Usually restricted | Your choice |
| Tax Benefits (Business) | Often significant | Depreciation & interest only |
| End of Term | Return, extend, or buy out | You own the car outright |
The right choice depends on your individual circumstances. We can help you weigh up the pros and cons.
How Car Leasing Works With Us
A straightforward process to get you behind the wheel
Discuss Your Needs
Tell us about your situation - business or personal, how many kilometres you drive, and your budget. We'll recommend the best lease type for you.
Compare Options
We search our panel of lenders for competitive lease rates and terms that suit your situation. All credit histories considered.
Choose Your Vehicle
Select the car you want to lease - new or used. We can help with our car buying service if you need assistance finding the right vehicle.
Drive Away
We handle the paperwork and settlement. Start driving your new vehicle with predictable monthly payments and peace of mind.
Checking your options won't affect your credit score
Potential Tax Benefits
One of the main reasons businesses and salary-packaged employees choose leasing is the potential tax advantages. Here's what you might benefit from:
Tax benefits vary based on individual circumstances. We recommend consulting with your accountant for specific advice on your situation.
Business Lease Tax Example
A business leasing a $50,000 vehicle over 4 years could potentially claim the full lease payments as a business expense, reducing taxable income significantly over the term.
Car Leasing FAQs
Common questions about vehicle leasing
With a car loan, you borrow money to buy the car and own it from day one. With a lease, you're essentially renting the vehicle for a fixed term. Leases typically have lower monthly payments because you're only paying for the car's depreciation during the lease term, not the full purchase price.
Yes, we work with lenders who consider a range of credit sit...
Yes, we work with lenders who consider a range of credit situations. While lease approvals can be more challenging with bad credit, we have options available. Talk to us about your situation - we'll be upfront about what's possible.
This depends on your lease type. With an operating lease, yo...
This depends on your lease type. With an operating lease, you return the car. With a finance lease, you can pay the residual amount to own the car, return it, or refinance the residual. We'll explain your options when the time comes.
A novated lease is a three-way agreement between you, your e...
A novated lease is a three-way agreement between you, your employer, and a finance company. Your employer deducts lease payments from your pre-tax salary, reducing your taxable income. Running costs like fuel, insurance, and servicing can also be included.
For businesses, lease payments are generally tax-deductible ...
For businesses, lease payments are generally tax-deductible as a business expense. With a finance lease, you can also claim the GST on the purchase price upfront. For individuals, a novated lease provides tax benefits through salary packaging. We recommend consulting your accountant for specific advice.
Yes, you can lease used vehicles, though terms and availabil...
Yes, you can lease used vehicles, though terms and availability vary by lender and the age/condition of the car. Used car leases typically have shorter terms. We can help you find lenders who offer used car leasing.
Leases typically have a kilometre allowance. If you exceed t...
Leases typically have a kilometre allowance. If you exceed this, you'll pay an excess kilometre charge at the end of the lease. It's important to estimate your annual kilometres accurately when setting up the lease. We can help you determine a realistic allowance.
Early termination of a lease usually incurs fees, which can ...
Early termination of a lease usually incurs fees, which can be significant. The exact cost depends on your remaining term and contract terms. If your circumstances change, contact us to discuss your options - sometimes refinancing is a better solution.
Not always. Many leases don't require a deposit, though prov...
Not always. Many leases don't require a deposit, though providing one can reduce your monthly payments. We have options for various deposit situations and can advise what works best for your budget.
With a standard finance or operating lease, you'll need to a...
With a standard finance or operating lease, you'll need to arrange your own comprehensive insurance. However, novated leases often include insurance as part of the package. We can explain the insurance requirements for your specific lease type.
Still have questions? Contact our friendly team
Ready to Explore Car Leasing?
Let us help you find the right lease for your situation. No upfront fees - just honest advice on your best options.