The preferences of new car buyers have changed in 2023 which has made the list of the most popular novated lease vehicles look dramatically different to previous years.
Each year, Fleet News Group surveys the novated leasing and salary packaging companies to create this list of top 10 novated lease vehicles. This year we also received data from NALSPA whose members represent approximately 50% of the novated lease market.
A list of the top 10 novated lease cars is like the ‘Car of the Year’ (COTY) awards but with the buying public as the judges. They are voting with their wallets compared to motoring journalist spending a week in a bunch of different cars with a clipboard for the ‘other’ COTY awards.
Over the last three years the Ford Ranger was the most popular novated lease vehicle. A prestigious title to hold for so long which matched its success in the annual VFACTS sales data. However in 2022, the Labour Federal Government introduced the Electric Car Discount Bill and it instantly pivoted new car buyers towards electric vehicles and novated leasing.
In 2022 there was one EV in the top 10. The list was still dominated by Dual Cab Utes and medium SUVs. This year there are four electric cars, a PHEV and only one utility.
2023 Top 10 Novated Lease Cars
| Rank | Vehicle |
| 1 | Tesla Model Y |
| 2 | Tesla Model 3 |
| 3 | BYD ATTO 3 |
| 4 | Ford Ranger |
| 5 | Mitsubishi Outlander |
| 6 | Mazda CX-5 |
| 7 | Toyota Landcruiser Prado |
| 8 | Hyundai Tucson |
| 9 | Hyundai i30 |
| 10 | MG ZS |
Andrew Kerr, Director – Sales & Marketing, Inside EDGE Novated Leasing, has seen many changes during his time in the salary packaging industry and 2023 turned out to be a year of significant change in customer preferences.
“2023 was a year of great change and big swings in the pendulum between energy efficient EV’s and the traditional big selling Dual Cab Utes and SUV’s,” Kerr told Fleet News Group.
“At Inside EDGE, we were quick to implement the governments electric discount legislation which provided our clients with the opportunity to enjoy huge tax savings on EV’s under the threshold. While the traditional Dual Cab Utes and SUV’s still held their own, what has been very interesting is the enquiry level and the variation to the types of vehicles our clients wanted to discuss and learn more about.
“So, while we saw a huge take up of EV’s those who may have settled on a traditional petrol based car, were very open to learning more about EV’s both battery and PHEV and remarked how there next purchase will be very different to their current car. We see the trend to EV’s continuing over the current years given the amount of energy efficient vehicles becoming on to the car market.”
The popularity of electric vehicles as novated leases has seen a number of new players enter the market and Origin has been featured in the annual survey for the first time.
Origin’s General Manager of eMobility, Chau Le, told Fleet News Group that 2024 will see more EV models arriving in Australia which will give novated lease buyers more choice to suit their varying lifestyles.
“The Tesla Model Y is hands down the most popular Origin subscription electric vehicle for 2023, followed by the Tesla Model 3,” said Le.
“Excitingly, with new or updated models scheduled for release this year, Origin EV subscribers will have more EV options. We have an EV employee benefits or salary sacrifice package to suit every taste, budget, or lifestyle.”
For some novated leasing providers, Dual Cab Utes are almost disappearing from their portfolio and electric car manufacturers with the best supply are taking the largest market share.
“We have found that there has been an increase of approximately 40% in enquiries for novated EV’s and this is translating into Tesla Model Y vehicle sales as the leading EV,” says Philip Owen, National Novated Manager at Summit Fleet Leasing and Management.
“Dual Cab Utes have really fallen away in our novated lease enquiries now as EV’s have taken the lead. We are seeing a big increase in BYD/GWM enquiries but as yet this has not translated into major sales numbers.”
Even with the increased incentive to purchase electric vehicles via a novated lease, there are still some issues being experienced. Bobby Karanfilov, CEO at Simplygreen Salary Packaging, highlights the challenges the market is solving quickly.
“Availability, particularly on plug in hybrid models, is an issue,” says Karanfilov. “And how to best incorporate electricity costs, or the practical application of the actual cents per km reimbursement methods for home charging.”
“How fleet and salary packaging companies will integrate this (home charging) into their offering will be interesting with more infrastructure being built and the expansion of public charging networks. There is still some uncertainty around resale values considering the rapidly evolving technology, and potential for battery degradation, which may impact the early adopters.”
If you’re wondering which cars featured in previous edition of the Fleet News Group top 10 most popular novated lease cars, click on the links below.
