Hi Aus finance,
I am looking into purchasing a used Toyota Camry 2025 (HEV) which is ~$43,000 from a dealership. I have looked into novated leasing and am still confused if it is the right way to lease for me vs a traditional car loan. I do not have the lump sum to pay outright in cash at the moment, but am earning ~$145,000 this year, projected to earn 10% higher each year as I am working in NSW Health (which takes half of tax savings from NL).
I am also finishing my contract in 2 years, and am uncertain if I will remain in the public sector by then - potentially terminating the novated lease early. I have $38,000 of HECS debt leftover currently.
I have gone to the website created by one of the wonderful users here at https://novatedlease.guide/calculator and it seems like I would be off worse with a novated lease compared to a traditional car loan. I am just wondering how this makes sense? Are there any other benefits to the novated lease if the ultimate cost ends up higher than a traditional car loan? Thanks.