Megan Foster March 21, 2025 No Comments

So your boss has decided to give you a novated lease as part of your new salary package, so it’s off to the car yards you go to choose your shiny new car. That’s one of the benefits of getting a new car through a salary sacrifice deal: you get to pick the car, unlike the case with a bog-standard company car or fleet vehicle. In the case of a company car, it’s the company that picks the car, not you.

Although it’s always exciting to get a new car, it’s important to make sure that you get a vehicle that suits you and your needs, otherwise it’s more of a pain than a privilege.  This is especially the case with a novated lease, where you could very well end up paying the residual value of the car in question when the term of the lease comes to an end (although you’ll still get a great deal on the vehicle – have a play with our calculator to see just how much you’ll save).  So before you go out and say “I’ll have the cute red one,” it’s time to ask a few questions. And the first question shouldn’t be “What colour do I like the best?”

What do you need to know about your new car? Ask the right questions.

Questions To Ask About Your New Car

#1 How many doors and seats?

If you have four kids and several dogs, then a sweet little sports car with a low coupé roof, a teeny boot and only two doors isn’t going to be a useful part of your life. In this case, you should look for an SUV, a van or a big station wagon instead. Conversely, if you’re on your own and you only have a small amount of parking space, that little hot hatch might be just the thing as your new car.

#2 What sort of energy turns the wheels?

Does your possible new car run on petrol, diesel, electricity or a combination? If you are considering an EV, then ask how you’re going to charge it. Do you want to install a charging box at your home? Are there plenty of public chargers near your house and your workplace (or even at your workplace)?  What about the other places you like to go? What’s the battery range like and what are the charging times?  There are some good reasons to choose an EV – such as missing out on fringe benefit taxes (see below) – but if you are likely to do a lot of running out the back of beyond where chargers are few and far between, then maybe another type of energy might be the best option for you.

#3 What are your must-haves for comfort and convenience?

Modern cars come with all sorts of bells and whistles, so it’s good to make sure that the features that you really like are in the car you want.  Exactly what your must-haves (or deal-breakers) are will depend on your needs and your style. Do you make a lot of calls?  Full Bluetooth integration and voice activation will be high on your list. Do you know that you’re a bit heavy in the right foot? Then cruise control will be a real plus for you.  Need to keep the kids entertained on the school run? Then a good sound system for sing-alongs (and drowning out whining) is a real sanity saver.  Going through the menopause? Then multizone climate control and even heating/cooling seats will be very welcome in a new car.

#4 What’s the fuel economy?

Depending on the exact details of your novated lease, you may or may not have to pay for the fuel in your new car (petrol cars, of course!). However, it’s always good to know what the fuel economy will be so you (or the accounting department) can budget accordingly. It’s also good to know how often you’re likely to need to top up.  Of course, if a high-performance car with plenty of performance oomph is what you’re after, then fuel economy may be lower down on your priority list.

#5 Will the new car do what I want?

If you do a lot of DIY and gardening and need to take a trailer down to the nearest Bunnings or garden store, then you need to have a vehicle that’s capable of towing said trailer. If you like to go adventuring during the weekends and head out into the countryside, then having something with off-road ability or at least AWD is probably a good idea.  However, if you like hitting the malls and need something that will fit into small parking spaces, then your new car will need to be a completely different type of vehicle.

#6 How easy is it to maintain?

Again, you may or may not have to fork out for repairs to your new car, depending on the details of the novated lease. Either way, it’s good to know how easy it will be to get parts if something breaks. If you want something a bit out of the ordinary, then are you prepared for a bit of a wait while replacement parts come from overseas? Or should you go for something more run-of-the-mill so that your mechanic is likely to have the right parts handy, minimizing the time your car is off the road.

#7 Is the new car exempt from fringe benefit tax?

Some cars are exempt from fringe benefit tax, which is a real bonus for you and for your employer.  By the time you are likely read this, in Australia, only full EVs are exempt from this tax.  This may be the deciding factor for you. Even so, if a hybrid or petrol vehicle will suit you, your family and your lifestyle better, you’ll still get a better deal with a novated lease than you would with a “regular” car loan – just give our calculator a go and you’ll see.