Should I use mortgage-offset cash or a novated lease for a car?
The comparison is not “tax saving versus no tax saving”. Compare the novated lease finance, fees, residual and tax effect against the mortgage interest you would save by leaving the purchase cash in offset. Use the same vehicle and holding period.
What changes the answer
Start with the exact drive-away price and the amount that would otherwise leave the offset.
Separate the contractual lease finance from running-cost budgets and administration fees.
What to check before acting
Model the residual as an end-of-term cash flow and keep tax assumptions explicit.
The answer can change with income, vehicle eligibility, employer program, lease term and mortgage rate.
- Use your actual balance, price, term and fees.
- Keep the comparison on the same time horizon.
- Check any tax-sensitive or contract-specific point against the current source document.
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Compare my finance optionsSources and verification
General information only. It is not personal financial, tax or legal advice. Finance approval, pricing and structure are subject to lender assessment and your circumstances.