How much does it cost to lease a Toyota?

The cost of leasing a Toyota will depend on the make and model of vehicle you choose. There are other costs to factor in, like the novated leasing fees or rates. It will also depend on whether you choose fully maintained leasing or non-maintained leasing. Fully maintained novated leasing comes with the costs of servicing and insurance included. When you take into account the savings on income tax however, you can end up paying less than the original purchase price.

What happens if I change my mind about novated leasing?

It's a good idea to arrange a test drive of the vehicle first, because changing cars mid-lease is harder than you might think. You can't simply swap cars during a novated lease period. You would need to end your existing lease by making the remaining payments and then starting a new lease. Early termination fees may be applicable in this instance.

What happens if I change my employer during a novated lease?

If you leave your employer the responsibility of the lease remains with you. You may be able to choose to leave the lease early or you may be able to take the lease with you to a new employer or repay yourself out of pocket.

What happens if I damage or write off the car?

With a fully maintained novated lease you should have been paying insurance costs as part of the lease payments. The insurance here would ideally cover the cost of any damage. With a non-maintained novated lease, you would be in charge of the insurance costs. The first thing to do after an accident is call your insurance provider to see if your insurance covers the cost. If the car is written off, the leasing company would still need to be paid the remaining amount of the lease.

Novated leasing for Toyotas

With a novated lease you can use your pre-tax salary to drive a Toyota and pay less income tax.
The novated lease is attached to the employee, so if they leave they take the lease with them without risk to the business.
Once your novated lease comes to an end you can choose to start a new lease or buy the car outright.

What is novated leasing?

A novated lease is where you sacrifice a portion of your salary to make payments towards leasing a vehicle.

Crucially, those payments come from your pre-tax salary. This means you end up paying less tax!

The novated leasing agreement is between the employee, your employer and a third party leasing company. Your employer agrees to pay for the leasing costs directly and they recoup the costs from your salary.

Depending on the type of novated lease arrangement you have, your payments might also include the costs of running and maintaining the vehicle.

When you compare the costs of buying and running a vehicle with your post-tax income, paying through a novated lease and reducing your tax tends to be the more cost-effective solution.

Can I use a novated lease to drive a Toyota?

Yes, you can use a novated lease to drive a Toyota. It might depend on the availability of the lease provider you are using however.

You may also be able to lease a Toyota electric vehicle. This can bring extra tax benefits, as eligible battery electric and hydrogen fuel cell cars can be exempt from fringe benefits tax (FBT). Toyota's petrol, diesel and hybrid models don't qualify.

What are the benefits of novated leasing a Toyota?

For the employee

Less pressure on the wallet. If you're worried about the cost of paying for a car upfront or taking out a loan, this is a cost-effective option. You may also benefit from corporate fleet discount programs that can reduce the retail price of a vehicle.
Tax benefits. With lease repayments coming from your pre-tax salary, you pay less income tax.
Easy loan management. With the payments coming out of your salary before you even see it, you don't have to worry about managing the costs yourself.
After-lease sale benefits. If you own the car at the end of the lease and decide to sell it, any profit from the sale will be tax-free.
No usage restrictions. There are no limitations on the way you use the vehicle. You can use it for business or personal use as much as you like.

For the employer

A way to offer incentives. A novated lease is a good way to incentivise employees with little expense to your business.
Limited risk. You won't be responsible for the vehicle if your employee leaves before the lease is up.
Not attached to the business. Novated leases are not considered an asset or liability of the business.
You don't need to arrange a company fleet. Novated leases are a way for your employees to access discounted vehicle leasing through your company without having to manage a company fleet.
Benefits for electric vehicles. Eligible battery electric and hydrogen fuel cell cars can be exempt from fringe benefits tax (FBT), as long as the car was first held and used on or after 1 July 2022 and no luxury car tax has been payable on it. Hybrids don't qualify, and plug-in hybrids only qualify under some arrangements in place before 1 April 2025. Fuel-efficient cars also have a higher luxury car tax threshold.

What Toyotas can I lease?

Depending on the novated lease partner you go with, you can choose from a range of Toyota vehicles, including:

Toyota Corolla
Toyota Corolla Cross
Toyota GR Corolla
Toyota HiLux
Toyota Kluger
Toyota Yaris
Toyota Yaris Cross
Toyota LandCruiser
Toyota LandCruiser Prado
Toyota RAV4

Toyota Camry
Toyota GR86
Toyota GR Yaris
Toyota GR Supra
Toyota Fortuner
Toyota LandCruiser 70 Series
Toyota C-HR
Toyota bZ4X

How can I lease a Toyota?

Several businesses in Australia offer novated leasing. If you are salary sacrificing through your employer you should ask them first if they have a preferred novated lease provider or existing agreement.

You also have the option of the employer going to Toyota directly.

When you choose your vehicle to lease you will also have the option of deciding between a non-maintained novated lease and a fully maintained novated lease.

Can I keep my Toyota at the end of my novated lease?

You usually get the option to buy your vehicle at the end of your novated lease with a balloon payment. You can then decide whether you want to keep the car or sell the car.

Alternatively, you can end your existing lease to start a new lease with a new vehicle.

Buying the car at the end of your novated lease is usually only worth it if you're going to be in a position where you can no longer lease (e.g. changing jobs, retiring, your company no longer offers this).

If you are going to remain employed your best option will usually be to start a new lease, because it's the most cost-effective way of owning a car.

Check our complete guide on what to do once your novated lease has ended.

Frequently asked questions about Toyota novated leasing

The cost of leasing a Toyota will depend on the make and model of vehicle you choose.
There are other costs to factor in, like the novated leasing fees or rates. It will also depend on whether you choose fully maintained leasing or non-maintained leasing. Fully maintained novated leasing comes with the costs of servicing and insurance included.
When you take into account the savings on income tax however, you can end up paying less than the original purchase price.
It's a good idea to arrange a test drive of the vehicle first, because changing cars mid-lease is harder than you might think.
You can't simply swap cars during a novated lease period. You would need to end your existing lease by making the remaining payments and then starting a new lease. Early termination fees may be applicable in this instance.
With a fully maintained novated lease you should have been paying insurance costs as part of the lease payments. The insurance here would ideally cover the cost of any damage.
With a non-maintained novated lease, you would be in charge of the insurance costs. The first thing to do after an accident is call your insurance provider to see if your insurance covers the cost.
If the car is written off, the leasing company would still need to be paid the remaining amount of the lease.

Finder writers are subject matter experts and use primary sources, in-depth research and interviews with other experts to ensure you're getting accurate, up-to-date information. Articles are fact checked in line with our editorial guidelines.

Thank you for your feedback!

Written by

Rebecca Pike

Editor, Money

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Rebecca Pike is Finder’s money editor, with over 7 years of experience in mortgages and personal finance. A frequent TV and radio commentator, she frequently appears on Sunrise and 7News, Today and 9News, as well as Sky News, Channel 10 and across radio and print. Rebecca previously served as Editor of Mortgage Professional Australia. She has a Master’s degree in Journalism as well as ASIC-recognised certifications in Tier 1 Generic Knowledge and Tier 2 General Advice Deposit Products, which comply with ASIC guidelines. See full bio

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Toyota novated leasing

Novated leasing could be the opportunity for you to drive away with a new Toyota and save on tax.