Car ownership is a dream of many Australians, but it’s not the only way to enjoy the freedom that your own personal vehicle has to offer. There are a whole host of options on the market for people looking for a new ride. From leasing to purchasing and subscribing, drivers have never had more choice in how they find themselves behind the wheel of a new vehicle. But what are the differences? If you’re deciding between car subscription, buying or leasing, how do you know what’s right for you?
Should I buy a car?
Whether you buy from a dealer or through a private seller, purchasing a car is an expensive, time-consuming and frustrating process. With stamp duty, dealer delivery and a host of other on-road costs that may apply, you can find yourself out of pocket by several thousand more than you imagined.
It’s not over after you get the keys – the cost of running the car over its lifespan can equal or exceed the cost of purchasing it outright. Between depreciation, insurance, registration, roadside assistance and servicing, you could be up for tens of thousands of dollars in expenses over the next five years.
What about leasing a car?
Alongside buying a car outright or taking out a loan, some Australians are considering novated leasing to help them get on the road. Provided by a range of car leasing companies, novated leases provide drivers access to a vehicle of their choosing for a fixed monthly cost. The cost of the car is taken from the employee’s pre-tax income by their employer and provided directly to the provider.
While some drivers are attracted to the potential tax savings offered by novated leasing, it is not always the best option. With minimum terms in as long as three or five years, novated leasing locks you into a specific car and a specific financial arrangement for a long time. This can get especially confusing if you change jobs during that term. A novated lease requires the cooperation of your employer to take on the lease obligations, so if you change or lose your job, you could find yourself taking on those obligations yourself.
Additionally, it can make your tax return much more complicated at the end of the financial year, giving you headaches that you don’t need. On top of that, it is often not the most affordable option. Even accounting for pre-tax income, it can often be substantially cheaper to subscribe to a car, with many novated leases costing above $200 per week for a relatively basic car.
The smarter, more affordable way to drive
Don’t lock yourself into a multi-year commitment with one of Australia’s car leasing companies and don’t spend weeks shopping around for the perfect vehicle. Get behind the wheel of something you’ll love faster and for less with Carbar’s car subscription service.
One weekly fee covers insurance, registration, servicing and roadside assistance. No more renewal notices, no more expensive trips to the garage, no more budgeting for extra interest on your loan – just you and the car of your dreams. You’ll save thousands over the next few years, all the while enjoying the ability to switch vehicles anytime it suits you. New family member on the way? Need a different vehicle for work? Just give us two weeks’ notice and we’ll have you behind the wheel of something special. Learn more about car subscription, browse our range of vehicles or join for free, visit carbar.com.au today.
