Opting for a Novated EV novated lease on a battery electric vehicle (BEV) can be an economical, faster way to get on the road. Plus, you’ll save on running costs and taxes in the process!
Electric vehicles (EVs) have lower repair and maintenance costs than their petrol or diesel counterparts due to their fewer parts. Furthermore, EVs experience fewer breakdowns than their petrol or diesel counterparts due to the reduced amount of moving pieces needed.
Save on fuel
Novated leases for electric vehicles can save you money on fuel and maintenance expenses. It is because EVs require the same servicing as other cars – including tyre changes, brake fluid changes and suspension checks – but tend to be less costly to keep running than petrol models.
Take advantage of government incentives to speed up decarbonisation in transport. Not only can this get you an electric vehicle sooner than planned, but it will be more budget-friendly than purchasing one outright.
Save on maintenance
Novated EV novated lease are an effective way to reduce maintenance expenses when switching from gas-powered cars to electric models. Since EVs lack the same intricate systems that gas-powered vehicles possess, they should require less servicing and repair over time than their gas-powered counterparts. A 2020 Consumer Reports study revealed that electric cars could cut maintenance expenses by 50 per cent compared to similar gas-powered models.
A novated lease is also eligible for various government incentives and rebates as an additional benefit. It is particularly helpful in areas with high petrol prices as it can reduce the cost of a new electric vehicle by up to 50%.
Novated EV novated lease for an electric vehicle (EV) is more flexible than buying it outright, as you can upgrade every three years and trade your leased car for another at the end of its contract or sell it.
Another advantage of a novated lease is that it allows for the claim of running expenses on the vehicle, such as registration, maintenance and tyres. It could leave more money in your pocket if you’re employed and pay for your lease with a pre-tax salary.
A significant disadvantage of a novated lease is that you have limited customisation options. It’s common for leases to have low mileage limits or not allow for fancy wheels or auxiliary lights, for instance.
Customising your electric vehicle and making it truly unique to you may prove challenging, leading to extra costs when returning the car at the end of your lease.
Before purchasing an electric vehicle, it is wise to research your lease options. This way, you can pick a car that best meets your needs and budget. Furthermore, check out the latest models to choose one with cutting-edge technology and safety features.
Save on tax
Novated leasing is a tax-efficient way to finance an electric vehicle. It allows employees to reduce their taxable income by using pre-tax salary for repayments on their leases. Furthermore, it covers associated running costs like registration, insurance and maintenance – guaranteeing your EV will never run out of money.
Recently, the Australian Government introduced a tax exemption for electric vehicle buyers on a novated lease. According to Inside Edge director Andrew Kerr, this change will significantly reduce the cost of owning and running an electric vehicle.
This exemption is available for vehicles with a base purchase price of $84,916 or less and covers road costs such as fuel and tyres. Therefore, electric cars purchased on a novated lease could potentially save an average employee more than $30,000.
Though this FBT exemption is welcome news, it won’t extend to all types of electric vehicles. Unfortunately, many of today’s more modern EVs – including Chinese-built models – are ineligible.
The government’s Electric Car Discount policy offers tax rebates for some electric vehicles (EVs). It makes owning an electric vehicle more accessible to average drivers, thus increasing the number of EVs on the road.
We suggest a novated lease if you’re uncertain which electric vehicle to buy. Not only will this save you on the purchase price of your EV, but it will also reduce your taxable income and offer other advantages not available when buying classic cars.