Buying a new family car has never been simple. Between balancing budget, style, safety, and practicality, most families find themselves torn between head and heart. In 2025, the decision is even harder because the market is shifting under our feet — electrification, changing tax rules, and a flood of new models mean that old buying habits don’t always serve families well anymore. For many Australians, the answer lies in novated leasing, which makes the family SUV of your dreams a smarter, more affordable choice.
The SUV Default
For young families, the mid-size SUV has become the default choice. It’s easy to see why: space for prams and scooters, a higher driving position for safety, and just enough comfort to keep parents happy on long drives. Whether it’s a Toyota RAV4, Hyundai Tucson, or Kia Sportage, these cars tick the boxes.
But defaulting to what “everyone else drives” can be limiting. Families should be thinking bigger — not in terms of car size, but in terms of long-term value and salary packaging benefits. A novated lease can transform what might seem out of reach into a practical new car option that feels like a pay rise.
The End of the PHEV Sweet Spot
For a few years, plug-in hybrids (PHEVs) looked like the perfect bridge: electric commuting during the week, petrol range on the weekend. Under a novated lease, they also enjoyed the FBT exemption, making them a tax-effective family car choice.
That ended on 31 March 2025. Now, PHEVs are back to being a compromise — with higher purchase prices, more complex drivetrains, and without the same tax savings that once made them attractive. Families still considering them should be honest: unless you’re religious about plugging in every night, a hybrid or full EV makes more sense.
Why EVs Are Now the Smart Family Choice
The real story of 2025 is the rise of the electric family SUV. Thanks to the FBT exemption on eligible EVs, novated leasing transforms cars like the Tesla Model Y, BYD Sealion 6, and MG4 into affordable family options.
For families with off-street parking and solar panels, the savings stack even higher. Charging at home is cheaper than petrol, servicing is minimal, and salary packaging compounds those savings into a genuine employee benefit.
Yes, some buyers still hesitate because the badge isn’t European, or because Chinese brands like BYD and MG are relatively new in Australia. But having driven them, I can say this: they’re no longer “budget” cars. They look good, feel premium inside, and deliver exactly what most families want — comfort, space, and safety — at a fraction of the running cost.
Style, Status and the Family Budget
Families that once gravitated to European badges for status are starting to see things differently. Reliability, tech, and financial peace of mind matter more when you’re juggling school runs, sports weekends, and family holidays. That doesn’t mean style is out the window — far from it. The latest EVs and hybrids are some of the best-looking cars on the road.
But in 2025, choosing a family car is no longer just about what looks good in the driveway. It’s about what keeps more money in your pocket each month. With novated leasing, many Australians are finding they can afford more features, more comfort, and more safety — without breaking the family budget.
Think Forward, Not Back
The worst mistake a family can make in 2025 is buying with yesterday’s mindset. The car market is changing fast, and novated leasing makes some of the smartest choices — particularly EVs — not only affordable but financially compelling.
If you’re buying a new family car this year, don’t just follow old patterns. Run the numbers. Compare novated lease savings. And seriously consider an EV, because for the first time, it’s not just the greener choice — it’s the smarter family choice.
Thinking about upgrading your family SUV? Get a novated lease quote today and see how much you could save with salary packaging.
