SUVs continue to play a major role in the Australian new-car market, but the vehicles buyers are choosing are becoming much more diverse.
Traditional family SUVs now compete directly with hybrid and electric models, while brands such as BYD and Tesla have put even more pressure on established manufacturers.
For buyers, that means the decision is no longer simply about choosing the most popular badge.
Price, powertrain, running costs, insurance, finance and how long you plan to keep the vehicle can all affect which SUV makes the most sense.
Here are five popular SUVs worth comparing in 2026.
Quick Look: Five Popular SUVs to Consider in 2026
| SUV | Powertrain Focus | Why Buyers Consider It | Potential Fit |
|---|---|---|---|
| Toyota RAV4 | Hybrid | Efficiency and established reputation | Families wanting hybrid practicality |
| Mazda CX-5 | Petrol | Familiar ownership and refined driving | Traditional medium-SUV buyers |
| Mitsubishi Outlander | Petrol / PHEV | Space and powertrain choice | Families wanting extra flexibility |
| Tesla Model Y | Electric | EV technology and practicality | Drivers ready to move fully electric |
| BYD Sealion 7 | Electric | Equipment and competitive EV positioning | Buyers comparing newer EV brands |
1. Toyota RAV4
The Toyota RAV4 remains one of the most recognisable medium SUVs in Australia.
Its biggest point of difference is its hybrid focus.
For drivers who want to reduce fuel use without depending on external charging infrastructure, the RAV4 offers a middle ground between conventional petrol ownership and a fully electric vehicle.
Why do Australians consider the RAV4?
Its appeal includes:
- Hybrid efficiency
- Practical family space
- Strong brand familiarity
- Broad dealer support
- Everyday versatility
The RAV4 can be particularly appealing to drivers who spend a lot of time in suburban or urban traffic, where hybrid systems can provide their greatest fuel-saving benefit.
What should you compare before buying a RAV4?
Don’t compare the RAV4 solely against other hybrids.
Its price may put it in competition with some entry-level electric SUVs as well.
Compare:
- Drive-away price
- Fuel consumption
- Insurance
- Servicing
- Expected kilometres
- Resale value
- Finance cost
If you’re an eligible employee, it can also be useful to compare a conventional finance arrangement with a novated lease, particularly if you’re considering the RAV4 alongside an eligible EV.
2. Mazda CX-5
The Mazda CX-5 remains a familiar choice for Australians who prefer a more traditional medium-SUV ownership experience.
Fingo also supports Mazda novated lease options for eligible employees considering a Mazda as their next vehicle.
Unlike the growing number of EV-focused alternatives, the CX-5 continues to appeal to drivers who value conventional refuelling, established servicing networks and familiar petrol vehicle ownership.
Why do buyers still consider the CX-5?
Common reasons include:
- Comfortable cabin
- Familiar petrol powertrain
- Practical medium-SUV size
- Established dealer network
- Strong consumer recognition
The CX-5 is a useful reminder that Australian buyers aren’t all moving toward electrification at the same pace.
For some households, straightforward petrol ownership may still better suit their driving patterns.
What should you compare with the CX-5?
Running costs matter.
A petrol SUV may be straightforward to refuel, but fuel costs can become significant for high-kilometre drivers.
Before deciding, compare the vehicle’s purchase price with its expected:
- Fuel costs
- Insurance
- Servicing
- Tyres
- Depreciation
- Finance repayments
If you’re financing rather than paying cash, Fingo’s car repayment calculator can help you estimate what the finance commitment may look like.
3. Mitsubishi Outlander
The Mitsubishi Outlander is another established family SUV, but its appeal is slightly different.
Depending on the variant, buyers can choose between conventional and electrified hybrid powertrains, while some configurations also offer additional seating.
That makes it particularly relevant to households that need more flexibility than a smaller medium SUV can provide and are more fuel efficient in today’s elevated fuel price climate.
Why do Australians consider the Outlander?
Potential advantages include:
- Family-focused interior
- Seven-seat availability
- Useful cargo space
- Established Australian presence
- Petrol and electrified options
For buyers considering the plug-in hybrid version, charging habits become particularly important.
A PHEV can make more sense when it is regularly charged and much of the daily driving can be completed using electric power.
Should you finance or lease an Outlander?
That depends on how you’ll use it.
A buyer planning to keep the vehicle long term may prefer conventional car finance.
An eligible employee may instead want to compare salary packaging and other funding methods.
The important point is to compare the total ownership cost, not simply the advertised repayment.
4. Tesla Model Y
The Tesla Model Y shows how significantly Australia’s medium SUV market has changed.
A fully electric SUV can now compete directly with long-established petrol and hybrid family vehicles.
Fingo has also looked specifically at whether the Tesla Model Y remains one of Australia’s strongest novated lease EV options.
Why do buyers consider the Model Y?
Potential attractions include:
- Fully electric driving
- Practical SUV packaging
- Strong technology focus
- Home-charging capability
- Reduced reliance on petrol
- Established EV charging ecosystem
But an EV needs to suit the driver’s actual lifestyle.
Someone with reliable home charging may have a very different ownership experience from someone who depends heavily on public charging.
Why does financing a Model Y require a different comparison?
For eligible employees, an electric vehicle may qualify for the EV FBT exemption when the vehicle and arrangement meet the applicable requirements.
That makes the finance comparison different from a petrol SUV.
Instead of comparing only:
RAV4 price vs Model Y price
you may need to compare:
total RAV4 ownership cost vs total EV salary-packaging cost
An EV novated lease may therefore be worth modelling before deciding which SUV is actually more affordable for your circumstances. However traditionally Toyota RAV4 presents a better resell value than the Tesla Model Y.
5. BYD Sealion 7
The BYD Sealion 7 represents another major change in the Australian SUV market.
BYD has expanded rapidly, giving buyers an increasingly credible alternative to established manufacturers and Tesla.
The Sealion 7 has also appeared among Fingo’s coverage of Australia’s best-selling cars in 2026, reflecting how quickly newer EV brands are entering mainstream consideration.
Why are buyers considering the Sealion 7?
Potential attractions include:
- Fully electric powertrain
- Competitive standard equipment
- Modern cabin technology
- Medium-SUV practicality
- Growing Australian brand presence
BYD’s wider growth also means buyers now have more leverage when comparing EVs.
Instead of choosing an EV simply because one manufacturer dominates the category, Australians can increasingly compare multiple brands at similar price points.
What should you compare before choosing a BYD?
Look beyond standard equipment.
Compare:
- Battery range
- Charging speed
- Warranty
- Insurance
- Servicing support
- Vehicle depreciation
- Purchase price
- Finance cost
For employees interested in salary packaging, check your novated lease eligibility before assuming the advertised vehicle price tells you the full story.
Which SUV Is Likely to Cost Less to Own?
There isn’t a universal answer.
The cheapest SUV to buy and the cheapest SUV to own can be very different vehicles.
Ownership costs may include:
- Purchase price
- Finance interest
- Depreciation
- Fuel or electricity
- Registration
- Insurance
- Servicing
- Tyres
- Repairs
- Residual or balloon amounts
The comparison becomes particularly important when petrol, hybrid and electric SUVs appear in similar price ranges.
An EV might cost more upfront but potentially use less energy and qualify for different salary-packaging treatment.
A hybrid might require no lifestyle adjustment around charging while still reducing fuel use.
A petrol SUV may have a lower initial price but higher fuel costs depending on how much you drive.
Should You Choose Petrol, Hybrid or Electric?
Start with how you actually use your vehicle.
Petrol may suit you if:
You want maximum refuelling convenience, travel unpredictable routes or don’t currently have practical charging access.
Hybrid may suit you if:
You want to reduce fuel consumption but aren’t ready to rely on charging.
Electric may suit you if:
You can charge conveniently, your typical driving falls comfortably within the vehicle’s range and the total financial comparison works.
Eligible employees considering electric SUVs should also understand how novated leasing works before comparing an EV with a petrol or hybrid vehicle.
The tax treatment can materially affect the outcome.
New Car or Used SUV?
Another decision buyers sometimes overlook is whether the vehicle needs to be brand new.
A used vehicle may allow you to:
- Spend less upfront
- Avoid part of the initial depreciation
- Access a higher specification within the same budget
A new vehicle may provide:
- Full factory warranty
- Latest safety technology
- Newer powertrain technology
- More predictable history
Eligible employees can also explore whether a used car novated lease is appropriate rather than assuming salary packaging is limited to brand-new vehicles.
How Much SUV Can You Comfortably Afford?
A common mistake is deciding which SUV you want first and only calculating affordability afterwards.
Reverse the process.
Work out:
- The amount you’re comfortable spending
- The expected running costs
- Your preferred finance term
- Any residual or balloon
- Insurance
- Your annual kilometres
- How much flexibility you need if your circumstances change
Then shortlist vehicles that fit those boundaries.
If you’re using conventional finance, compare the estimated repayments using Fingo’s car repayment calculator.
If you’re considering salary packaging, use the novated lease calculator to model the potential effect on your take-home pay and vehicle costs.
What About a Car Allowance?
Some employees receive a vehicle or car allowance through work.
If that’s you, don’t automatically assume the allowance is the best way to fund your next SUV.
Compare what you receive after tax with:
- Your finance repayments
- Fuel
- Insurance
- Servicing
- Registration
- Depreciation
Depending on your employment arrangement, it may also be worth comparing the allowance with salary packaging.
The right answer depends on the actual numbers rather than the label attached to the employee benefit.
How Should You Finance Your SUV?
There are several possible ways to fund an SUV.
Cash can avoid finance interest but uses money that could remain in savings, investments or a mortgage offset.
A car loan allows the purchase price to be spread across repayments.
Eligible employees may consider a novated lease.
Businesses may have separate commercial vehicle finance options.
The best method depends on:
- Income
- Employment
- Vehicle use
- Tax circumstances
- Available cash
- Finance rate
- How long you’ll keep the vehicle
Don’t compare only the fortnightly or monthly payment.
Compare the complete financial outcome.
Don’t Let Popularity Make the Decision for You
Best-seller lists are excellent for discovering vehicles worth researching.
They’re not a substitute for doing the research.
Before choosing your SUV, ask:
- Does it have enough passenger and cargo space?
- Does the powertrain suit my driving?
- What will insurance cost?
- Can I comfortably charge it if it’s an EV?
- How much will I spend on fuel or electricity?
- How long do I plan to keep it?
- What might it be worth when I sell?
- Which finance structure suits me?
The RAV4, CX-5 and Outlander continue to give buyers established alternatives.
The Model Y and Sealion 7 demonstrate how quickly electric SUVs have moved into mainstream competition.
More choice is good for buyers, but only if you actually compare it.
The Bottom Line
Australia’s SUV market in 2026 offers buyers very different ways to solve the same problem.
You can choose the hybrid familiarity of the Toyota RAV4, the conventional appeal of the Mazda CX-5, the family flexibility of the Mitsubishi Outlander, or move fully electric with vehicles such as the Tesla Model Y and BYD Sealion 7.
The smartest choice isn’t necessarily the vehicle with the highest sales number.
It’s the SUV that fits your lifestyle and makes financial sense once purchase price, running costs and funding are considered together.
Fingo can help buyers compare vehicle finance, salary packaging and different ways of funding their next car before they commit.
Frequently Asked Questions
Is the Toyota RAV4 available through a novated lease?
Eligible employees can generally consider a Toyota RAV4 under a novated lease, subject to employer participation, finance approval and provider requirements.
Can I get a Tesla Model Y on a novated lease?
Yes, eligible employees may be able to obtain a Tesla Model Y through a novated lease. An eligible battery-electric vehicle may also qualify for the EV FBT exemption when the legislative conditions are met.
Is the BYD Sealion 7 eligible for EV novated leasing?
A battery-electric Sealion 7 may be eligible when both the vehicle and novated lease arrangement meet the applicable FBT exemption conditions. Eligibility should be checked before entering an agreement.
Can used SUVs be novated leased?
Potentially, yes. Novated leasing isn't necessarily restricted to new vehicles. The vehicle, employer and finance arrangement still need to meet the provider's requirements.
Should I use a car loan or novated lease for an SUV?
Neither option is automatically better. Compare your income, employment arrangement, vehicle type, finance costs, running expenses and how long you intend to keep the SUV.
Does a higher-selling SUV automatically have better resale value?
No. Popularity may support future demand, but resale value also depends on age, kilometres, condition, vehicle supply, new-car pricing and market demand at the time you sell.
