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Novated lease
vs personal finance

Toyota Kluger comparison

Novated lease vs personal finance

Save $12,729 on a Toyota Kluger

To demonstrate how much cheaper a novated lease is, we’ve compared it against personal finance, and  ‘generously’ assumed the individual using personal finance has received the same discount on purchase price, although that’s rarely the case.

Salary & vehicle


$100,000 + super

Car allowance



2016 Toyota Kluger GXL 7st 3.5i

On road cost


Annual kilometres

12,000kms p/a


No business use


3 year lease

Annual running costs

Finance payments








Registration & CTP




Total gross cost


So the total cost of running the Kluger for a year is $19,838. Although you would receive discounts on your running costs thanks to our buying power, we’ll assume for now that the costs are the same, whether you use a novated lease or personal finance. That way the savings outlined below are purely thanks to the tax effectiveness of a novated lease.

Payroll treatment Personal finance Novated lease

Gross salary



Salary sacrifice






Taxable income



Income tax



Employee contribution



Take home pay



Running costs



Disposable income



Annual saving


3 year saving


You can see above, as you sacrifice part of your salary with a novated lease, your income tax reduces. And even though your take home pay is lower, you’ve already paid for the car, so you’re actually better off to the tune of $4,243 a year, which is a massive saving of $12,729 over the term of the lease.

It might seem a little confusing to begin with, but we’ll talk you through it. And we can assure you, it becomes a lot clearer when you see how much your own income tax will reduce by, and how much you’ll save overall.

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