A Family-Friendly Path to Your New Hybrid
Looking for a new family car can be both exciting and a bit daunting, especially if you’re considering a switch to hybrid technology. Between juggling busy schedules, running errands, and keeping everyone happy, finding the right way to finance your next vehicle can become an unwanted headache. If you’ve come across the term “novated lease” and aren’t quite sure what it means (or how it might help you), you’re not alone. This blog will walk you through the basics of novated leasing—an increasingly popular form of car finance—so you can step into your hybrid dream car with confidence.
What Is a Novated Lease?
A novated lease is a type of salary packaging arrangement that involves three parties: you, your employer, and a finance provider (in this case, Toyota Fleet Management through Canberra Toyota). Essentially, your employer agrees to take on your car lease payments (including running costs like fuel, maintenance, and insurance) by deducting a portion from your pre-tax and post-tax salary.
Not sure what that means for you? In simple terms:
- Your employer makes payments for your car and its running costs.
- You enjoy the tax advantages of having those costs deducted before you receive the remainder of your take-home pay.
- You get to drive the car you actually want—be it a family SUV or a hybrid hatchback—without the stress of juggling separate payments for fuel, servicing, and insurance.
Why Novated Leasing Is Great for Families
1. Predictable Monthly Budget
When you’re raising a family, every dollar counts. A novated lease can bundle up the car’s big-ticket costs—like purchase price, maintenance, registration, and insurance—into one monthly payment. This way, it’s easier to budget, and you reduce the risk of getting hit with unexpected bills.
2. Potential Tax Benefits
Part of your lease payment is taken out before tax, which could reduce your taxable income. While individual circumstances vary, families often find these tax savings help free up funds for other essentials, from groceries to family holidays.
3. Access to a More Affordable Hybrid
Families thinking of reducing their carbon footprint or saving on fuel may be drawn to hybrid vehicles, such as a Toyota Corolla Hybrid or a RAV4 Hybrid. Through the buying power of Toyota Fleet Management, you could score discounts that aren’t always available to the general public. This may mean stepping into the comfort, safety, and advanced tech of a hybrid sooner than you expected.
4. Less Hassle, More Convenience
With a novated lease, the administrative legwork—like vehicle registration, insurance renewals, and even repairs—can be streamlined under the arrangement. You get to enjoy ‘cashless motoring’ for all covered costs, meaning you simply use your provided TFM fuel card and let servicing centres handle authorisations directly with Toyota Fleet Management.
How Does It Work in Practice?
Check Eligibility
First, confirm your employer offers salary packaging. If they haven’t done so before, Toyota Fleet Management can guide them on how to set up an agreement.
Choose Your Car
You’re free to select any make or model, but many families love Toyota’s hybrid range for their fuel efficiency and ample cabin space. If you currently own a car, you might even consider a “sale and leaseback,” where the finance provider buys your car at market value, then leases it back to you.
Get Your Quote
Toyota Fleet Management will provide a quote that includes all the details: lease costs, finance rates, and a salary analysis. Because interest rates and fees are transparent, you’ll know exactly what you’re paying for.
Sign the Documents
After your application is approved, both you and your employer sign the lease. Registration and insurance details are handled upfront, often with minimal fuss.
Enjoy Cashless Motoring
Your employer deducts a portion of your salary to pay the lease, and you drive the car. It’s that simple. Fuel, maintenance, tyres, roadside assistance, and other running costs can all be included, saving you time (and possibly money).
End-of-Lease Options
When the lease ends (usually one to five years later), you can extend the lease, buy the car outright, or upgrade to a newer model—perhaps a brand-new hybrid with the latest features.
What If You Change Employers?
Families don’t always stay in the same circumstances—job changes are a fact of life. If you leave your employer or switch jobs, the lease can often be “re-novated” or transferred to your new employer, provided they agree to it. If not, you can continue making payments directly or pay out the lease. This flexibility helps families keep their vehicles and maintain peace of mind, even if work situations shift.
Why Novated Leasing Suits Hybrid Vehicles
Fuel Savings
Hybrid cars already reduce fuel consumption, and pairing that with a novated lease where fuel can be included in your pre-tax package could lead to even more savings.
Eco-Friendly Choice
Many families want to lessen their environmental impact. Hybrids are known for producing lower emissions, which is an excellent step toward sustainable family motoring.
Resale Value
Hybrids often enjoy strong resale value, meaning you could get a solid return if you decide to sell at the end of the lease term.
Benefits for Employers, Too
Although this blog post primarily focuses on families, it’s useful to note that novated leasing can be a big plus for employers. It’s not just a perk for staff; it can help businesses stand out by offering a valuable employee benefit without burdening their own balance sheet. As a result, employees can enjoy better remuneration packages, and companies can attract and retain top talent.
In a Nutshell
A novated lease through Canberra Toyota, powered by Toyota Fleet Management, can help you cut through the complexity of car ownership. By consolidating your monthly expenses, you can keep more of your cash flow accessible for family life—be that extracurricular activities, family outings, or simply peace of mind. And with the appeal of Toyota’s hybrid range, you’ll not only enjoy lower fuel bills but also feel good about your family’s impact on the environment.
Still have questions? Contact our friendly finance specialists to discuss how a novated lease could help you and your family get behind the wheel of a hybrid (or any other vehicle, if that’s your preference). We understand that every household has unique needs, and we’re here to guide you step-by-step—ensuring the transition into your new family car is as smooth as possible.
Ready to Get Started?
By choosing a novated lease through Canberra Toyota, you can look forward to an easier, more cost-effective driving experience. Whether you’ve been eyeing a hybrid for its fuel savings or simply want the convenience of bundling all your expenses into one monthly payment, a novated lease could be the answer.
Speak to our finance team today to learn more about how novated leasing works and whether it’s right for you. We’re here to help you explore your options, understand the process, and move closer to your dream of a safe, spacious, and eco-friendly family car.
