When it comes to selecting a new family car under a novated lease, the decision often comes down to balancing practicality, comfort, and long-term value. Families today have more choice than ever, from reliable Japanese and Korean SUVs to stylish European models and increasingly competitive electric vehicles from China.
This guide draws on real buying discussions and the latest novated lease trends to help you choose the right family car.
What Families Are Looking For
For many households, especially with young children, a mid-size SUV remains the ideal choice. These vehicles provide:
- Space for car seats, prams, and weekend getaways.
- A higher driving position with good visibility.
- Practical storage without the bulk of a seven-seater.
Increasingly, families are looking at top-spec models with premium features like leather seats, heated/ventilated seating, and advanced safety tech. For those used to European brands, comfort and styling are often at the top of the list.
Novated Lease Budget Sweet Spot
With a novated lease, a budget between $40,000 and $60,000 opens up a wide range of options — from high-spec petrol and hybrid SUVs to feature-packed EVs. Salary packaging helps stretch this budget further by reducing taxable income, turning luxury touches into an affordable employee benefit.
Hybrids, Plug-in Hybrids and EVs
- Hybrid SUVs like the Toyota RAV4 offer excellent efficiency and proven reliability.
- PHEVs such as the Mitsubishi Outlander or BYD Sealion 6 are a strong fuel efficient option.
- EVs like the Tesla Model Y, BYD Seal and MG4 are quickly becoming mainstream, particularly for urban families with solar panels and off-street parking.
If you’re open to electric power, novated leasing makes it even more attractive by removing Fringe Benefits Tax (FBT) on eligible EVs — translating into thousands in annual savings.
The Rise of Chinese EVs
Brands like BYD and MG are rapidly gaining traction with stylish designs, high-tech interiors, and competitive pricing. For families prioritising comfort, features, and eco-credentials, they tick many boxes. The hesitation usually comes down to brand reputation, dealer networks, and long-term reliability — but early adopters are finding them more than capable.
Australia’s Top Novated Lease Cars (2024)
The market tells its own story. According to NALSPA, the most popular novated lease cars in 2024 were:
- Tesla Model Y (EV)
- Tesla Model 3 (EV)
- Mitsubishi Outlander (PHEV)
- Ford Ranger (Diesel)
- Toyota RAV4 (Hybrid)
- BYD Seal (EV)
- Ford Everest (Diesel)
- BYD Sealion 6 (PHEV)
- Toyota LandCruiser Prado (Diesel)
- Mazda CX-5 (Petrol)
For families, this list shows a clear trend: electric and hybrid SUVs are now the mainstream novated lease choice.
Key Considerations for Families
- Model Cycle – Cars like the Toyota RAV4 have new generations coming soon. Leasing the current model may mean missing out on updated tech.
- Lifestyle Fit – Metro families with solar panels can maximise savings with an EV. Country drivers may prefer hybrids or diesels for range.
- Resale Value – While novated leasing offsets depreciation through tax savings, popular models (RAV4, Tesla, Outlander) generally hold value well.
- Badge vs Benefits – European styling is appealing, but reliability and running costs often favour Japanese, Korean, or Chinese brands.
Final Word: The Best Family Car is the One That Fits You
Whether you’re leaning towards a hybrid Toyota RAV4, a feature-rich Kia Sportage, or making the switch to an electric Tesla or BYD, novated leasing helps make it affordable. With salary packaging, you can turn a pay rise into a better car for your family — and potentially save thousands each year.
Thinking about a new family SUV? Get a novated lease quote today and see how much you could save.
