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How much would you pay for safety? Chinese brand JAC spills on the staggering cost of a five-star ANCAP safety rating for its 2025 JAC T9 ute
By Andrew Chesterton · 26 Apr 2025
Chinese newcomer brand JAC has spilled on the real cost of obtaining a five-star ANCAP safety rating in Australia, confiding that the brand had to invest millions of dollars to score top marks under 2024's testing protocols.
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The 2025 Hyundai Inster costs more than Chinese electric car rivals like the MG4, BYD Dolphin and GWM Ora, but is that because of its edgy design?
By Stephen Ottley · 26 Apr 2025
What price do you put on style? If you’re Hyundai, it’s $39,000 (plus on-road costs), which is the starting price of its all-new Inster compact electric vehicle.But while that makes it more expensive than its direct competitors, Hyundai’s global design boss has said that’s a cost the company must pay.SangYup Lee, Vice President and Hyundai and Genesis Global Design Centre, explained that while the brand could have decided to make the Inster cheaper, the priority was to create a lasting first impression to the Hyundai brand for new buyers it hopes to attract.“ This is our challenge,” Lee told CarsGuide. “But at the same time, when it comes to EV of the Year, Inster, that is the gateway car for first-time users, and a lot of young Gen Z players buying this car. So for me, the entry-level car, the first car is so important because a gateway for our product. So we just want to make sure it has a lot of character.”He said the recently revealed Insteroid concept car is an extension of this design philosophy, playing with the idea of fun and youthful design that will try to speak to a new generation of customers - rather than making the cheapest, most-affordable model possible - even if it means standing out from other models in the Hyundai line-up.“Sometimes when you look at it, you have a smile on your face. And then you see in the Insteroid that is our video game car, it's all about ,” Lee explained.“When you look at it, you have a smile on your face. So you don't have to have exactly the same face as Palisade to the Inster. So this is all about, we have to really target our customers. And at the end of it, I must say there's nothing wrong with what other brands do versus what we are doing and the customer will make a decision.  I really believe this is the customer’s decision.”With its $39,000 starting price the Inster is notably more expensive than its nearest rivals, which all happen to be from relatively new Chinese car brands. The BYD Dolphin starts at $29,990 (plus on-road costs), the GWM Ora costs $35,990 drive-away and the MG4 is priced from $37,990 (plus on-road costs).Despite the cheaper prices, Lee has nothing but compliments for his Chinese rivals, but stressed Hyundai has different priorities as a more established carmaker, particularly when it comes to longevity of design and vehicle reliability.“I have a huge respect for Chinese brands because in such a short amount of time, they challenge a lot,” the Hyundai design boss said. “But we are a traditional OEM and we also are taking care of our customers on the fundamental side of it, most important safety."I mean, of course you love to have karaoke inside of a car and everything together, but a car is a form of transportation. You travel with your family, the safety is something you cannot compromise and therefore the usability and all the things, et cetera. And then we are actually adding the value. For the high techs and also connected and everything together. And so this is actually a bit of the priority difference, I would say.“But once again, that’s okay, this is our philosophy, which we believe is a very important philosophy, a customer able to choose at the end of it. Because for me, a brand-new car is cool, but cars on the street are even more important because I see the value of the car when the car has been out there at least five years and parked on the street."Is the car still stable? Is the car still easy to use and doesn't get dated soon? I think those are the very important factors when you design a car.”Fresh from claiming the title of EV of the Year at the World Car of the Year Awards, the Inster is due to launch in Australia by the middle of the year.
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Forget Chinese brands like MG, BYD and Chery! These non-Chinese carmakers are having a sales hot streak in Australia in 2025
By Tim Nicholson · 25 Apr 2025
There’s a lot of attention paid to the rise of Chinese auto brands in Australia and their ever-increasing market share.Brands like BYD, Chery, GWM, MG and newer marques like Deepal, Geely, JAC, Leapmotor and Zeekr have collectively taken a bite out of the sales of some long-standing brands.But it’s not all doom and gloom for the more established, non-Chinese makes. In fact, a number of them are performing quite well on the sales charts so far this year.However, it’s not mainstream legacy brands that are on the up. In fact, a lot of the top-10 brands are treading water.With the exception of Fiat Professional, whose sales are up by 120 per cent this year, all of the other brands experiencing strong growth in 2025 are exotic, premium or semi-premium offerings.One of the semi-premium brands doing well in 2025 is Cupra. Volkswagen Group’s Spanish performance specialist has seen its overall sales shoot up by 35 per cent so far in 2025 after a slower 2024.While a couple of its models - the ageing Ateca SUV and the Leon small hatchback - have gone backwards on the sales charts, the striking Formentor SUV has increased by 54.8 per cent in 2025. At 469 sales so far, it’s not a massive number but it represents a big uptick for a newish name.The Born EV is also up this year by 24.2 per cent, while the only just arrived Tavascan electric SUV is expected to further boost Cupra’s sales thanks to keen pricing and sharp design. Facelifted versions of the Leon and Formentor arriving this year should only help Cupra’s upward trajectory.Mini is another semi-premium brand having an excellent 2025. The BMW-owned marque’s sales are up by 69.4 per cent so far (1394 versus 823 units). And it’s largely thanks to one model.The new-gen Countryman SUV has proven to be a massive hit, recording 553 sales which equates to a 369 per cent increase on Q1 last year. As well as enjoying positive media reviews, buyers have clearly warmed to the new Countryman’s more family-friendly dimensions, new tech and the option of petrol and fully-electric powertrains.Of course the Cooper hatch remains the brand’s top seller, with petrol and electric versions combining for a total of 634 sales, up 29.7 per cent.It might not be a premium brand in its US home market, but in Australia, Chevrolet takes a more upscale position as it only sells high-end, full-size pick-ups and sports cars.That strategy is clearly working because Chevrolet sales are up by 12.8 per cent so far in 2025, on the back of interest in the Corvette sports car. Z06 sales are up 250 per cent and the Stingray has increased by 50 per cent. The Silverado 1500 truck is the biggest seller with 627 sold in 2025, up by 14.4 per cent.Two of Australia’s most popular premium brands are also having a good year - Lexus and Mercedes-Benz.What’s interesting about Lexus is that its growth is mostly down to the compact LBX SUV. The little crossover has recorded a massive 353 per cent increase on its Q1 2024 tally with 598 sales.The LBX is easily outselling its slightly larger UX sibling and is just ahead of the aforementioned Cupra Forementor (469 sales) and Mini Countryman (553), but trailing the Audi Q3 (676) in the premium small SUV segment.The Toyota Prado-based GX large SUV is Lexus’ other solid performer with 285 sales.Mercedes is having an exceptional start to the year with a 31 per cent boost thanks to big sales increases on a number of its model lines.Key models having a good year include the E-Class (+223 per cent) and S-Class (+300 per cent) sedans, GLA (+139.2 per cent), GLC (+82.5 per cent) and GLS (+72.6 per cent) SUVs and EVs like the EQB (+270 per cent).Despite double-digit sales drops for most of its Range Rover models - Range Rover, Evoque and Velar - Land Rover has seen strong interest in the Defender (+61.2 per cent) and the Discovery Sport (+57 per cent) for a Q1 boost of 13 per cent.As is often the case in harsh economic times, the top end of town is sailing through unaffected. That is evident in sales of exotic brands in Australia, which are largely in positive territory.Rolls-Royce may have small volumes, but sales are up by 111 per cent this year, while sports car brands like Aston Martin (+34.1 per cent), Ferrari (+7.4 per cent), Lamborghini (+78.3 per cent) and McLaren (+100 per cent) are all well in front of the year prior.
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2025 Kia Tasman price and specs comparison: How does the bold new ute shape up against the popular Ford Ranger, Toyota HiLux and Isuzu D-Max? 
By Samuel Irvine · 25 Apr 2025
Kia Australia has some big expectations for its incoming Tasman ute. Most notable is the brand's aim of off-loading 20,000 units in its first full year, the equivalent to one quarter of the Tasman’s projected global sales.To do so in a shrinking ute market, it will need to lure Australian buyers away from traditional staples in Ford, Toyota and Isuzu while fighting off an increasing cohort of budget Chinese rivals, such as BYD, GWM and JAC.Achieving that will be no easy feat and require the Tasman to be competitive on the basics: grunt, payload, towing, tech, and arguably most important of all, price.So, does it? We’ve put the Tasman's top-grade head-to-head against some of Australia’s most popular ute models in an on-paper comparison designed to give you the best run-down on the all-new model before we've even taken it for a test drive.Starting with ground clearance, at 252mm, the Tasman exceeds its rivals by a minimum of 12mm. You could argue it's a relatively paltry difference, but 4WD enthusiasts would argue every millimetre counts when you're traversing rough terrain.Approach and departure angles is another area where the Tasman shines. At 32.2-degree approach and 26.2-degree departure, the Tasman shapes up as a symphony of well thought out proportions, something that will, once again, make it appealing to the four-wheel driving class.As an additional note, Kia claims to have "best-in-class" tub volume at 1173 litres, which sounds unusual given it doesn't have the largest tub dimensions in this class. Rather, its tub width and length are smaller than the Ford Ranger Wildtrak and Toyota HiLux Rogue. Further enquiries with Kia found that its best-in-class claim is according to VDA specifications, a commonly used European cargo space measuring guide. Ford, meanwhile, claims a tub volume of 1233-litres on the Wildtrak (a whole 60 litres more), though it's unclear what measurement guide the figure is based on.If its raw torque and power you're after, prospective buyers may be a little disappointed with the Tasman's outputs – at least on paper.But don't let the figures trick you into thinking its not a capable ute. In fact, it leads all of its rivals on payload, while delivering benchmark 3500kg towing; something the new plug-in hybrid BYD Shark 6 (321kW/650Nm) couldn't conquer.Kia said the decision to offer a 2.2-litre turbo-diesel four-cylinder engine, which falls 30kW/59Nm short of its most powerful rival (the V6 Ford Ranger Wildtrak), was based on the brand's decision to comply with Australia's New Vehicle Efficiency Standards (NVES). The scheme penalises carmakers who exceed government-mandated carbon emissions limits.While Kia is yet to officially release homologated emissions data on the Tasman, its relatively strong fuel consumption of 7.6 litres/100km suggests it will duck under the targets many of its rivals will fall victim to.This is one area where the Tasman decisively leads the segment, particularly in terms of tech and comfort. It carries twin 12.3-inch screens for multimedia and the digital driver's display, with a 5.0-inch touch monitor for climate controls wedged in-between.There's wireless Apple CarPlay and Android Auto connectivity, digital radio, wireless charging, quilted leather upholstery and intuitive features like a large folding-table mounted to the centre console.Kia claims the Tasman has "class-leading" headroom, shoulder room and second row legroom, which makes sense given it is the longest vehicle in its class. The Tasman also comes with an additional 33 litres of under seat storage.The Ranger Wildtrak's interior set-up comes the closest, with a 10.1-inch portrait-oriented touchscreen and an 8.0-inch digital driver's display. It carries wireless Apple CarPlay and Android Auto connectivity, too, as well as wireless charging and digital radio. Under seat storage is offered on the Wildtrak, however, Ford chooses not to quote a litre figure.The D-Max X-Terrain carries a smaller 9.0-inch multimedia touchscreen with wireless Apple CarPlay and Android Auto, along with an 8.0-inch digital driver's display. It misses out on wireless charging, though.The HiLux Rogue is well off the pace, providing only an 8.0-inch colour touchscreen with wired Apple CarPlay and Android Auto, no wireless charging pad and fewer clever storage spaces. Toyota is, however, set to upgrade this configuration next year when the new HiLux arrives.* All prices calculated before on-road costsPricing was one area where the Tasman was expected to spank the established competition, though its entry price of $42,990 before on-roads for the two-wheel drive S grade exceeds all its rivals by at least $6110.That likely comes down to higher production costs (the Tasman is built in South Korea, while its rivals are built in Thailand) and a more generous offering of standard features.By no means, however, is the Tasman exuberantly expensive, as evidenced by the X-Pro's mere $150 premium over the Wildtrak – a popular variant of Australia's most popular ute. But the success of budget Chinese brands, such as BYD, Chery, GWM and MG, in Australia has shown buyers are increasingly willing to prioritise value above all else, which could hurt the Tasman's sales prospects.Despite the conjecture online about the Kia Tasman's design, which does take a little getting used to, the Tasman is, by all means, a compelling package.It delivers and, in fact, exceeds the competition on several fundamentals, from ground clearance and approach/departure angles to payload, fuel efficiency, interior comfort and tech.That said, two key factors may not necessarily work in its favour - design and price. In a world where buyers are becoming increasingly cost-conscious, there may be a tendency to opt for more conventionally-styled budget rivals.As always, though, only time will tell whether the Tasman can live up to its maker's expectations.
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'China Speed': Major European car brand to develop 30 new hybrid, electric and range-extender cars by 2027 after three new concepts previewed
By Samuel Irvine · 24 Apr 2025
Volkswagen has unveiled three new electrified concepts at the Shanghai auto show, including the brand’s first range-extender electric vehicle.Intended as a preview for VW’s future product plans in China, the three concept vehicles, which appear to be near production-spec, have been co-developed with the brand’s local partners SAIC Motor, FAW Group and Volkswagen Anhui.The concept range kicks off with the ID.ERA, a full-sized three-row SUV sporting the brand’s first range-extender platform. While specific powertrain details remain under wraps, Volkswagen says it can provide 300km of range in EV-only mode and deliver a comprehensive range of at least 1000km.As a smaller Jetta-sized sedan targeting younger buyers, the fully electric ID.EVO has been developed with high-performance 800-volt architecture that can support faster charging times and longer range than its 400-volt equivalents.And finally, the ID.AURA is a medium-sized electric SUV designed exclusively for the Chinese market. It utilises Volkswagen’s China-specific Compact Main Platform (CMP), with zonal architecture and AI integration. VW said the model has been developed for the “cost-conscious consumer”.The move represents Volkswagen’s desire to get back to competitiveness in China, where the once-dominant brand is losing ground to emerging domestic rivals such as BYD and Xiaomi.Volkswagen’s future product plans for the world’s largest car market consists of 30 new models by 2027, with a major emphasis on drastically cutting the time it takes to develop new products.The new approach, dubbed “China-speed”, will see VW aim to develop a new car in less than 34 months to keep apace with its Chinese rivals.In the pre-EV era, development of a car with a traditional internal combustion engine (ICE) could take up to five years, but new Chinese EV brands have shown they can cut that time to as little as 18 months.Nissan has similarly said it is looking to cut the time it takes to develop a new model to 37 months as it seeks to return to profitability.All research and development of the new VW models will take place at Volkswagen’s new facility in Hefei, China. It remains unclear whether any will be sold in overseas markets.
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'Not durable and tough': ACCC alleges LDV misled buyers with 'durable and tough' claims of LDV T60 ute and G10 delivery van
By Tim Nicholson · 23 Apr 2025
Chinese commercial vehicle brand LDV is being taken to court by Australia’s competition and consumer watchdog over claims its cars are not reliable or tough.The Australian Competition and Consumer Commission (ACCC) today issued a media release detailing its claims against LDV which is distributed in Australia through private importer, Ateco Automotive.The importer has responded, saying it has tried to work with the ACCC and that the legal actions are “disappointing”.The claims relate to the T60 pick-up (but not the electric eT60) and G10 mid-size delivery vans built in China.The ACCC says between April 2019 and November 2024, LDV made “misleading representations” to consumers about the two models, with the company claiming they were “durable and tough, and that they were suitable for use in, near, or on, a variety of environments and off-road terrains”.The ACCC alleges in its claim that the two models are prone to rust or corrosion within five years of the date of manufacture and that as a result, the T60 and G10 were “not durable and tough”.It’s alleged the models are more likely to rust when they are housed near or on particular terrains and environments.According to the ACCC, LDV advertised the G10 and T60 online, on television, radio and social media in environments like beaches, lakes, rivers, unsealed and gravel roads and terrain.The ACCC also alleges “false or misleading representations” by LDV in advertising a 10-year anti-corrosion warranty for the T60, given the ute did have a propensity to rust or corrode.Further, the ACCC alleges LDV was aware of the T60 and G10 rust and corrosion issues by April 2019 and that LDV’s representations of the models were false or misleading as the brand didn’t have a basis to make such representations.LDV received more than 5000 complaints from G10 and T60 customers about rust or corrosion between January 2018 and November 2024.ACCC Chair Gina Cass-Gottlieb said a new car is a “significant financial purchase” and buyers should expect the product to live up to its advertised promise.“We allege that despite being aware of the propensity for the vehicles to rust, LDV continued to make representations for a number of years that the T60 and G10 vehicles were durable and suitable for use in a variety of terrains,” Cass-Gottlieb said.“As a result, we allege that LDV’s conduct is likely to have caused harm to affected consumers, including because the propensity for rust or corrosion lowered the value of their vehicles, and because consumers lost the opportunity to make an informed decision that may have involved purchasing an alternative vehicle that did not carry the same risks.”In a statement, LDV Australia said it acknowledged the announcement by the ACCC.LDV Australia General Manager Dinesh Chinnappa said the company would defend itself against the allegations.“For 18 months LDV Australia has been engaged in good faith discussions with the Commission in an attempt to resolve its concerns, and to provide remedies to consumers. It is disappointing this process has ended in these legal proceedings.“LDV Australia takes its obligations under Australian Consumer Law seriously, and we look forward to defending the ACCC’s allegations in court.”According to the ACCC, LDV has sold a combined total of 60,000 examples of the G10 and T60 in Australia between 2018 and 2024.The ACCC is seeking “penalties, declarations, consumer redress, costs and other orders”.
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Audi Q8 2025 review: 60 TFSIe quattro S line
By Emily Agar · 23 Apr 2025
The Audi Q8 60 TFSIe quattro S line has had a mid-life upgrade which sees tweaks to its design, technology and features. But do those upgrades make this large plug-in hybrid SUV one to look out for?
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Nissan takes aim at Ford Ranger PHEV, BYD Shark 6 with all-new plug-in hybrid dual-cab ute - is this the Nissan Navara of the future?
By Chris Thompson · 23 Apr 2025
As Nissan confirms a next-gen ute to launch within the next 12 months and the brand’s North American executives discuss streamlining its global ute and pick-up range, Nissan has revealed a plug-in hybrid ute at Auto Shanghai 2025.The 2025 Nissan Frontier Pro ute is the first electrified 'pick-up' from the brand, with the plug-in hybrid (PHEV) ute seemingly based on the Yuanye Z9, built by Nissan’s joint venture partner in China, Dongfeng.The Frontier name comes from the American badge for Nissan’s mid-size ute, once the same as, and now a sibling to, the Nissan Navara.Importantly, Nissan says the Frontier Pro will be exported to other markets after its Chinese launch later this year, though which markets remains unconfirmed.The Frontier Pro boasts a 300kW/800Nm powertrain sending drive to all four wheels from its 1.5-litre turbocharged four-cylinder engine and transmission-mounted electric motor. Nissan says the Chinese market estimation for its EV-only range is 135km under New European Driving Cycle (NEDC) testing, which can be less accurate and more lenient than widely used WLTP test figures.Five-link rear suspension, an electromechanical rear differential lock, four drive modes ranging across 'Hybrid', 'Pure Electric', 'Performance' and 'Snow' plus chunky 265/65R18 tyres wrapped around serious-looking 18-inch alloys all suggest the Frontier Pro plug-in should have at least some capacity for off-roading.Further to the mechanicals, the PHEV ute wears a face inspired by the design of the D21 generation ‘Hardbody’ Navara, namely via three of its LED headlights spanning the top of the fascia, reminiscent of the bonnet intakes in the D21.Inside, the Frontier Pro isn’t harking back to the 1980s. A 10.0-inch driver display and a large 14.6-inch multimedia touchscreen are joined by a two-spoke steering wheel, though as one would hope for in a work ute there are still physical controls for at least the climate control.Similarly important is the Vehicle-to-Load (V2L) port for powering or charging appliances via a household-style plug.The reveal of the Frontier Pro comes just after Chief Planning Officer for Nissan Americas Ponz Pandikuthira told US outlet MotorTrend the best plan going forward would be to streamline Nissan’s global ute and pick-up offerings: “Ideally we’d like to have a global convergence solution.”Interestingly, Pandikuthira said a plug-in hybrid would make the most sense for a single, global Nissan ute model to achieve solutions in most use cases. Pandikuthira also added that sooner rather than later is the plan: “We need to have a solution by . Three years from now.”Nissan had in March this year already confirmed “an all-new one-ton pickup” would launch in Japan’s 2026 financial year, which means anytime between April 2026 and March 2027.The model discussed in that plan is set to take advantage of Nissan’s links with Mitsubishi, potentially building a Nissan-badged Navara on the new Triton’s platform.As previously reported by CarsGuide, Nissan’s Chairperson of the AMEIO Region Guillaume Cartier told Australian media a new Navara would be on Australian soil in 2026.But don’t expect an electrified ute just yet - he clarified diesel is still the main dish for now."We need to make sure that if we electrify, how we electrify. I think it will be a two-step approach, first with a PHEV solution, then later on with EV," he said."That's what we're looking at, but first it will be with a diesel approach.”"On the first one we are with Mitsubishi, but the next one we are looking at. Because there is also technology we have in-house, which is solid-state battery, but that will take time.”It’s possible the “next one” Cartier referred to is the Frontier Pro plug-in just revealed in Shanghai, but time will tell.
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Ground-breaking plug-in hybrid SUV under consideration for Australia: 2025 Zeekr 9X revealed as cut-price Range Rover, Porsche Cayenne and BMW XM rival
By Samuel Irvine · 23 Apr 2025
Chinese carmaker Zeekr has revealed its flagship 9X SUV at the Shanghai auto show ahead of the car’s official launch in the third quarter of this year.According to the brand’s local operations, the 5.3-metre long model is under active consideration for Australia as it looks to strengthen its two-strong line-up, currently consisting of the X electric SUV and 009 electric people mover.In terms of design, the 9X strongly resembles luxury SUV staples, such as the Rolls-Royce Cullinan or Toyota Century SUV. That said, it borrows its foundations from fellow Geely-owned brand Lynk & Co’s 900, which is slated for release later this month.Underneath, the 9X will carry a Xiaoyao battery pack from CATL that Zeekr claims will deliver 380km of pure-electric range, marking the furthest distance among hybrid SUVs globally.Zeekr hasn’t detailed the exact size of the battery, nor total power and torque outputs, but it will come paired to a 2.0-litre turbo-petrol engine that delivers 205kW on its own.The entire configuration will see the 9X rocket from 0-100km/h in a claimed 3.0 seconds.Ride comfort will be secured through “industry-first” dual-chamber air suspension and active stabiliser bars, the brand says.Inside, there will be Rolls-Royce-style starlight headlining, while Zeekr’s 'G-Pilot H9' autonomous driving system with five Lidar sensors will also be fitted.The 9X’s twin, the Lynk & Co 900, will launch before the 9X, which the brand says has already attracted some 40,000 pre-orders. The brand is set to launch in Australia next year.It loses the 9X’s large chrome grille and LED headlight clusters for a flat front bumper panel and dual-'fanged' headlights. There are different wheel designs in addition to the 900’s unique rear LED tail-light bar design.Zeekr says the 900’s dual-electric-motor, 2.0-litre turbo-petrol engine set-up delivers a total power output of 650kW, while the time it takes to sprint from 0-100km/h rises to 4.3 seconds.Inside, the 900 boasts twin 30-inch 6K displays and six seats with 180-degree rotating functions.Pricing for either model is unclear, although in China, the 9X is anticipated to range from approximately A$110,000 for the base-spec to A$215,000 for the top-spec ‘Grand Edition’.Full pricing and specifications for the 9X are expected to emerge ahead of the car’s official launch later this year.
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Leasing a car in Australia: Who, what, when, where, why and how!
By Stephen Corby · 23 Apr 2025
Buying a car outright - a new car, no less - has long sat just below the increasingly Everest-like peak of Australian aspiration; home ownership. Indeed, for most of us it is the second-largest financial decision of our lives.The key difference is that when you own a home, you return each night to a warm bed and the comforting reassurance that the roof over your head is appreciating in value.Cars, on the other hand, have a nasty habit of greeting you each morning as a rapidly depreciating lump parked on the driveway.Leasing (whether novated, finance, or operating) offers a compelling alternative to outright ownership, provided you know exactly what you’re signing up for.Essentially, leasing a car equates to renting one – usually for a set period between two to five years, with fixed monthly payments.When the lease concludes, rather than having to face the cost of depreciation you face when buying a car outright (unless it’s a rare Ferrari or similar), you can simply hand the keys back and move on – ideally straight into another shiny new lease.Before discussing how to lease a car, however, it’s important to understand the different options available.The most popular is what’s called a novated lease, which is an arrangement where your employer helps manage your lease payments directly from your pre-tax salary (a state of payroll martyrdom called salary sacrificing, which sounds a lot more bloody and alarming than it actually is).This reduces your taxable income and subsequent income tax bill, potentially freeing up more disposable cash for life’s little pleasures, or the big ones, like paying off your house.How does a novated lease work? Running costs like registration, insurance, fuel, and servicing are likely to be bundled into your monthly payments.It will also involve Fringe Benefits Tax, which is calculated based on the vehicle’s value and annual kilometres travelled.At the end of your lease, you’ll face a balloon payment (think of it as a large sack filled with money rather than air) that will have been agreed in advance.You can pay that figure to take ownership of the vehicle outright (if, say, you’ve fallen hopelessly in love with it) refinance the residual through another lease or loan, or sell or trade in the car to pay it off.If the car’s market value exceeds the residual, you’ll pocket the savings. If not, you’ll have to cover the shortfall.Finance leases take a more bread-and-butter approach for those who intend to eventually own their leased vehicle.It’s a direct agreement between you and a finance provider, where you make regular monthly payments and agree upfront on a residual value – a lump sum to purchase the vehicle outright at the lease's conclusion.It's important to consider this residual value carefully, otherwise you might end up owing more than the vehicle's market worth.Lastly, there are operating leases – which are popular among businesses and people who don’t like to be tied down. They tend to be more of a short-term arrangement than other leasing options and usually include maintenance costs.You use the car, make fixed payments, and simply return it when the term ends – leaving you free to switch vehicles as you please.But every financial arrangement has its thorns, and so too, car leasing comes with both advantages and drawbacks, compared to buying.Leasing typically requires less upfront capital and offers lower monthly repayments compared to traditional car loans.Additionally, maintenance and running expenses can be bundled in to your payments, so you’re less likely to be blindsided at service time.The flipside is you won't own the vehicle unless you settle the residual, which may leave an aspirational itch unscratched for some. Plus, leases usually impose strict kilometre limits and expectations regarding vehicle condition, meaning rough treatment might incur additional costs when you return it.Comparing leasing to buying ultimately depends on your attachment to vehicle ownership and your overall financial goals.Leasing provides flexibility and can offer tax advantages, which can be particularly appealing to individuals or businesses looking for predictable costs and minimal initial outlay.On the other hand, buying outright offers complete ownership freedom paired with depreciating vehicle value.So, how do you lease a car in Australia? Firstly, put your thinking cap on and decide which lease type best fits your needs. Shop around for providers, compare deals, and pore over the fine print, repayment schedules, and residual amounts.After all that due diligence, you’ll hopefully drive off knowing exactly what you're responsible for.Like most major decisions in life, the best leasing option hinges on your personal and financial situation (and it might be worth consulting your accountant, or a taxation professional, before making your decision).Novated leases suit employees looking to leverage tax benefits through salary packaging. Finance leases appeal to businesses and individuals aiming to ultimately own the car without the initial cash outlay. Operating leases are a sound choice for those who want flexibility and an easy exit.You should, of course, be mindful of potential pitfalls across all leasing options. Changing circumstances, such as a job switch, could leave you liable for ongoing novated lease payments.Administration fees and potentially higher interest rates compared to traditional loans should also be factored into your decision making.Ultimately, leasing isn't inherently better or worse than buying – it's another financial tool available to help you drive the car you want, sooner.Whether leasing is right for you depends entirely on your specific circumstances, financial position, and a knack for understanding fine print.This material has been prepared for information purposes only. It should not be taken as constituting professional advice and you should consider seeking independent legal, financial, taxation or other advice to check how the information relates to your unique circumstances.
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