Are Novated Leases for EVs Worth It?
Electric vehicles (EVs) are becoming increasingly popular in Australia, and many drivers are now considering novated leases to finance their transition to cleaner, greener transport. But is it worth getting an EV through a novated lease? The answer largely depends on your personal financial situation, your driving habits, and your commitment to sustainability.
Financial Benefits of Leasing an EV
A novated lease allows you to pay for the cost of an electric vehicle, including maintenance, insurance, and running costs, with pre-tax dollars. This reduces your taxable income and can lead to significant tax savings. With an EV, these savings can be even more pronounced since many states offer additional incentives, rebates, or discounts for purchasing electric cars.
Moreover, EVs typically have lower running costs compared to petrol or diesel vehicles. With a novated lease, you can combine these savings with reduced costs for fuel and maintenance, as EVs have fewer moving parts and require less frequent servicing. All this adds up to a potentially cost-effective option for salary-packaged car ownership.
Environmental and Social Impact
Choosing an electric vehicle through a novated lease not only helps reduce your carbon footprint but also supports the transition towards more sustainable transportation in Australia. As more businesses and employees embrace EVs, this helps push the demand for cleaner energy, reduces emissions, and encourages further investment in charging infrastructure.
Are There Any Downsides?
While the benefits are clear, it’s important to weigh them against potential drawbacks. Charging infrastructure in Australia is still growing, and while it’s improving rapidly, drivers in rural or remote areas might face challenges with charging accessibility. Additionally, the higher upfront cost of EVs compared to traditional vehicles might offset some of the tax savings, although this gap is shrinking with more affordable EV models becoming available.
Conclusion
Novated leases for EVs can be worth it if you’re looking to save on taxes, reduce your running costs, and contribute to a more sustainable future. The key is to carefully evaluate your driving needs and whether the current charging infrastructure suits your lifestyle.
Ready to drive electric? Contact Novated Finance Australia today to explore your novated lease options for EVs and start enjoying the benefits.