Novated Lease Electric Car: Is It Feasible?

You may have noticed that there are a lot more electric vehicles on the road lately. It is largely due to the federal government’s new FBT exemption and lower running costs.

A novated lease electric car is a great way to get into an electric car without the added costs of registration, maintenance and tyres. Here’s why.

Save Money on Your Taxes

If the price of an electric car has ever put you off, you may be pleasantly surprised to find that they are becoming much more affordable thanks to government policies. The Federal Government recently introduced legislation that eliminates the Fringe Benefits Tax (FBT) on eligible electric vehicles provided through novated leasing arrangements.

When you take out a novated lease, the payments are deducted from your pre-tax salary each pay cycle, which reduces your taxable income and can result in significant income tax savings for you. Depending on your income level and the vehicle’s cost, you could save up to $4,644 per annum in FBT alone.

This new FBT exemption is another reason to consider a novated lease when buying an electric vehicle, especially for younger Australians who can reap the rewards. It may also make a lot of sense for people with families who can take advantage of the low running costs and additional benefits such as a larger boot space and free fast-charging infrastructure.

Get on the Environmentally-Friendly Road Sooner

The EV market is growing rapidly thanks to state and federal government incentives that make it much more affordable. EVs are still more expensive than petrol cars on purchase price alone. Still, when you factor in fuel and other costs such as maintenance and servicing, driving an electric vehicle works out much cheaper overall if you finance one with a novated lease.

EVs are also much quieter, which makes for a more pleasant ride. And many newer models allow you to put electricity back into the grid, saving you on your energy bills in the long run.

And if you buy your EV at the end of your novated lease electric car, you’ll pay a lower purchase price than the projected book value outlined in your lease contract. It is because your leasing company will calculate the future book value and consider depreciation to come up with a price that’s better than what you would have paid if you had bought the car outright.

The FBT exemption is helping to remove the financial barrier that has prevented many people from considering an EV-novated lease. With the option to buy at the end of a novated lease, you can choose an electric vehicle from a wider range than ever before that suits your driving needs and budget.

Get the EV That’s Right for You

When you get a novated lease, you can drive a high-spec electric vehicle that you might otherwise be unable to afford. With modest monthly payments, you can also save on electricity costs and petrol prices. In fact, according to the Electric Vehicle Council, the average EV costs around $10 less per 100km than a car with an internal combustion engine. Drivers with a fully maintained EV lease, solar system or home charging station can expect to save even more.

In addition to saving on running costs, an EV can also be more comfortable to drive. You won’t be slowed down by torque if you lift your foot off the accelerator, and many EVs use regenerative braking to slow down without using the brake pedal at all.

Save on Maintenance

When you lease an EV, all your running costs are included in the contract, making it more affordable. It includes petrol, electricity, insurance, servicing and tyres. You can even get a home charging kit installed with your novated lease.

With the new FBT exemption, it’s easier than ever to drive an electric vehicle on a novated lease in Australia. We can help you find a great-looking, well-maintained vehicle from one of Australia’s leading manufacturers and work with your budget to ensure you’re happy with your monthly payments and running costs.

If you’re looking to save money on a new car, then an electric EV might be the perfect solution for your family. With the opportunity to benefit from tax deductions, reduced energy/fuel costs and a wide range of other financial and lifestyle benefits, it’s no wonder that more and more people are choosing to lease an EV through a novated lease electric car.