Charging Ahead: How Much Does It Really Cost to Novated Lease an Electric Vehicle?

The electric vehicle (EV) revolution is charging ahead, offering drivers an eco-friendly alternative to traditional petrol and diesel cars. A novated lease is one of the most cost-effective ways to join this revolution. An electric vehicle novated lease allows employees to lease an EV using pre-tax income, leading to significant savings. 


Electric vehicle novated lease cost is a key consideration for potential lessees, with options like the 2023 ATTO 3 by BYD starting at $51,248 and luxury models like the BMW 2023 iX1 priced at $86,167.


What's Included in Your Lease?

Initial Costs and Savings

A novated lease on an electric vehicle encompasses more than just the monthly lease payment. It covers the total on-road costs, which include all types of car-related assistance, such as registration, insurance, and maintenance. For example, leasing a Tesla Model 3 MY23.5 at $65,832 through Novated Finance can save $34,580 over the term.


The Range of Electric Vehicles Available

The market offers a variety of electric vehicles for novated leasing, ensuring there's a fit for every driver's needs and budget. 


Options include:

  • The affordable 2023 ATTO 3 by BYD at $51,248

  • The popular Tesla Model 3 MY23.5 at $65,832

  • The stylish Volvo 2023 XC40 XZ MY24 at $79,778

  • The luxurious Mercedes Benz 2023 EQA 250 at $85,957

  • The high-end BMW 2023 iX1 at $86,167


Comparing Lease Costs Across Models

Each electric vehicle model has unique features and benefits, influencing the total lease cost and potential savings. It's crucial to compare these costs to find the best deal.


The Benefits of Novated Leasing for Electric Vehicles


  • Lower Your Taxable Income

  • Cover Vehicle Operating Expenses Using Pre-Tax Income 

  • Consolidate Financing and Operational Expenses into a Single Regular Payment

  • Exemption from Fringe Benefits Tax (FBT) for Electric Vehicles Priced Below $89,332

  • Obtain Vehicles at Reduced Purchase Rates

  • Comprehensive 24/7 Accident Support and Roadside Help


Saving with Tesla Novated Finance

The Tesla Model 3 MY23.5, an electric rear-wheel-drive sedan featuring a single-speed reduction gear and an AC motor with 194 kW, presents a significant financial advantage when acquired through a novated lease. With identical on-road costs of $65,832 (including all types of car-related assistance) for both car loan and novated lease options, the novated lease offers an estimated weekly cost of just $212, compared to $412 with a traditional car loan. This arrangement halves the weekly expense and provides an estimated total savings of $52,000 over the lease term, highlighting the substantial financial benefits of opting for a novated lease for your Tesla electric vehicle.


Interested in moving forward? The journey to your next vehicle is straightforward and hassle-free with Novated Finance Australia.


Follow these steps to navigate the process:


Step 1

Choose your preferred vehicle. If you can't find it here, don't worry; we'll find it for you.

Step 2

Complete our quick form, and we'll schedule a time to call you.

Step 3

Complete a credit application and sign our leasing documents after credit approval.

Step 4

We'll send the necessary information to your employer, guide them through the setup, and have them sign the deed of activation.

Step 5

Once finance is secured, we'll arrange for delivery of your car.

Step 6

We issue payroll instructions to your payroll department or external provider (such as Xero) to manage the payments.


Ready to save on your dream electric vehicle? Contact Novated Finance Australia today to explore your novated lease options and unlock exclusive savings on a wide range of electric vehicles.


Frequently Asked Question

  • An electric vehicle novated lease is a financial arrangement where an employee leases an EV using pre-tax income, leading to potential savings on the purchase price and running costs.

  • Savings vary based on the vehicle model, lease terms, and individual tax circumstances. For instance, leasing a Tesla Model 3 through Novated Finance can save $34,580 over the term.

  • Most new electric vehicles can be leased through a novated lease arrangement. It's best to consult with Novated Finance AU for specific models and availability.

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Eco-Friendly and Wallet-Friendly: Understanding FBT Benefits of Electric Car Novated Leases