Electric vehicles (EVs), such as Tesla Model 3 and Mitsubishi Outlander, do not use fuel engine parts but instead draw their energy from an electric battery pack, making them low-emission vehicles.
Novated leasing allows you to salary package an EV or PHEV. It saves on costs such as rego, comp insurance and servicing – not to mention potential tax benefits like FBT exemption on eligible EVs and PHEVs! Learn more about EV novated lease vs buying outright.
1. Save Money
One of the primary advantages of an electric vehicle’s novated lease is its potential savings potential. Unlike car loans with payable interest payments, novated leasing uses the pre-tax income to cover vehicle and running costs such as electricity usage and servicing, maintenance and registration (NSW) costs included in your monthly payments.
Electric vehicles (EVs) offer lower operating costs than traditional petrol cars, making them even more cost-effective. New battery electric and plug-in hybrid vehicles qualify for FBT exemption, saving thousands annually through novated leasing arrangements.
Electric vehicles (EVs) are more reliable and require less maintenance. However, like any vehicle, they will still require regular visits to a mechanic for oil changes, tire rotation and general repairs. But when these visits do come, they tend to be much cheaper due to having smaller engines with fewer parts to keep them in good working order.
At the end of your lease term, another way you could save is to opt to buy the EV outright at its projected book value if it falls below your contractual purchase price. Most novated lease agreements offer this feature, and you can acquire your vehicle at this discounted price.
2. Reduce Emissions
Electric vehicles produce far fewer greenhouse gas emissions when driven, making them an excellent option for those concerned with climate change and those looking to cut costs on fuel and maintenance expenses. Depending on vehicle type, electricity rate, and charging location, they may cost approximately $10 less per 100km. Learn more about EV novated lease vs buying outright.
With more EVs on the market and charging infrastructure expanding, green driving is easier than ever. Novated lease customers may save more with the Electric Car Discount that exempts such vehicles from FBT when leasing through employment arrangements.
Electric vehicles (EVs) tend to be more reliable and easier to maintain than their petrol-driven counterparts, requiring no oil changes and having fewer parts that wear down over time. Plus, refuelling an EV often works out cheaper than filling up at a gas station.
Due to FBT exemption, Electric Vehicle Discount, and other state/federal incentives, electric vehicles have become more cost-effective to own thanks to leasing through employers or taking advantage of lower operating costs and reduced emissions associated with them. EVs have quickly become appealing among employees leasing from employers or businesses who want to take advantage of lower operating costs and emissions associated with these vehicles.
3. Get a New Car Every Two or Three Years
As the EV market expands, new models with ever-increasing capabilities are coming. If you opt to lease instead of buy, switching models won’t require having to sell off your current one and sign a separate contract; all that needs to happen is turning in your car and signing on with another lease provider.
Novated leasing offers another cost-cutting way to secure an electric vehicle – through tax-deductible salary sacrifice; your employer pays for everything, including running costs, registration, insurance and maintenance through one tax-deductible arrangement – This means no GST is payable about its purchase price and ultimately lower income tax bills overall.
4. Get a Better Deal
Electric vehicles (EVs) are becoming more mainstream across Australia, offering motorists leasing and purchasing options when looking for their next ride. But which option will work best for you?
Novated leasing of an electric vehicle can be an efficient way to save on purchase price, electricity usage and running costs. All expenses can be included in one tax-deductible monthly payment, making low-emission vehicles even more affordable! With government incentives like the EV Discount now more accessible than ever – now is the ideal time to lease or purchase an EV!