How much does a novated lease cost in the NT?
AANT Salary Packaging is the Northern Territory's local novated leasing provider, and one of the first questions Territorians ask is a simple one: how much does a novated lease actually cost? The honest answer is that it depends on your salary, the car you choose and how far you drive. But a novated lease often costs less than a traditional car loan, because you pay for the car and its running costs from your pre-tax income. This guide explains what makes up the cost, where the savings come from, and how to estimate your own figure in a couple of minutes.
What makes up the cost of a novated lease
A novated lease bundles your car and its running costs into one regular payment taken from your salary. That payment usually covers the finance on the vehicle, plus running costs like fuel or charging, servicing, tyres, registration and insurance. Because these come out of your pre-tax income, you pay less tax on what you earn, and that is where the saving begins. The exact cost comes down to three things: the price of the car, your annual salary, and how many kilometres you drive each year.
How a novated lease compares with a car loan
Both traditional car loans and novated leases include interest. The key difference with a novated lease is that you make significant savings by paying for the car using pre-tax dollars. In addition, with a novated lease you don't finance the GST portion of the vehicle's cost, further reducing the amount you pay. Our local team can compare your novated lease quote against traditional finance to show you the difference.
What it costs in the Territory
Running costs are not the same everywhere, and a national calculator will not reflect what it really costs to run a car in the Territory. AANT Salary Packaging is based in Darwin and works with NT drivers every day, so our estimates are built around Territory conditions rather than a national average. Novated leasing is also widely available to NT Government employees, as many Territory agencies offer salary packaging.
Does an electric vehicle cost less?
Electric vehicles can be particularly cost-effective on a novated lease, thanks to available incentives and lower running costs. AANT Salary Packaging has a range of electric vehicles to suit every budget, so it is worth comparing an EV against a petrol or hybrid option before you decide.
How to estimate your own cost
The quickest way to see what a novated lease would cost you is to use the AANT Salary Packaging novated lease calculator. Enter the car's price, your income, how far you drive and your preferred lease term, and it estimates your fortnightly cost and potential savings in about a minute. When you are ready for exact numbers, the AANT SP team can prepare a personalised quote.
Common questions
- Is a novated lease cheaper than a car loan?
For many Territorians, yes. Because it is paid from your pre-tax salary and includes GST savings, it often works out cheaper than a car loan paid from your take-home pay. Your exact saving depends on your income, the vehicle and how far you drive.
- What is included in a novated lease payment?
Usually, the vehicle finance plus running costs like fuel or charging, servicing, tyres, registration and insurance, bundled into one amount from your salary.
- How do I work out what a novated lease will cost me?
Use the AANT novated lease calculator. Enter the car price, your income, your yearly kilometres and your lease term for an estimate in about a minute.
