Sustainable Driving Made Affordable: Top EV Novated Leases

A novated lease is a three-way agreement between an employee, employer, and a lease company. It allows employees to lease an EV using their pre-tax salary, resulting in tax benefits and potentially significant cost savings. 

This arrangement is becoming increasingly popular due to its financial incentives and the growing desire for sustainable transportation solutions.

The Benefits of Choosing an EV Novated Lease

Opting for an EV novated lease offers a range of financial and environmental benefits. Financially, lessees can enjoy reduced taxable income, GST savings on the purchase price, and the convenience of consolidated payments covering the vehicle and its running costs. Environmentally, driving an EV reduces carbon emissions, contributing to a healthier planet.

Several EV models are eligible for government incentives, such as the Fringe Benefits Tax (FBT) exemption, enhancing the appeal of EV-novated leases. Popular models include the Tesla Model 3 and Model Y, BYD Atto 3, Volvo C40 Recharge, and various others across brands like MG, Hyundai, and Polestar​.

Top EV Novated Lease Deals in 2024

In 2024, the landscape of EV-novated lease deals will be diverse and enticing. 

Some standout options include:

• BYD Atto 3: Offers a blend of affordability and range, with weekly costs including running expenses, making it an attractive option.

• Tesla Model 3 and Model Y: Remain popular choices, offering cutting-edge technology and performance, with their lease rates reflecting the premium experience they provide.

• MG ZS EV: Emerges as a budget-friendly choice without compromising on features, making it suitable for those new to the EV market​.

How to Find the Best EV Novated Lease Deals

To secure the best deal, prospective lessees should research extensively, comparing offers from different providers. Consulting with specialists and utilising online calculators can help understand the total cost of ownership and savings potential. 

It's also worth considering the vehicle's residual value at the lease's end, which can influence the overall cost-effectiveness of the lease​.

Making the Most of Your EV Novated Lease

To maximise the benefits of an EV-novated lease, lessees should be mindful of including all possible running costs within the lease agreement to take full advantage of tax savings. Understanding what can and cannot be included, such as charging costs and maintenance expenses, is crucial for optimising savings​.

Wrapping Up

EV novated leases represent a smart choice for employees looking to drive the latest electric vehicles while enjoying financial and tax benefits. By carefully selecting the right deal and vehicle, lessees can significantly reduce their environmental footprint and enjoy the myriad benefits of electric driving.

Ready to shift gears towards a greener future? Discover your perfect EV novated lease deal with Novated Finance Australia. Drive sustainably, affordably, and stylishly. Contact us today to find out how!

Frequently Asked Question

• What is an EV novated lease?

  An EV novated lease is a financial arrangement that allows employees to lease an electric vehicle using their pre-tax income, offering tax benefits and savings on running costs.

• How can I find EV novated lease deals near me?

  Research online, utilise comparison tools and consult with novated lease specialists to discover the best deals available in your area.

• Are EV-novated leases cost-effective?

  Novated leases can offer significant financial advantages over traditional car ownership methods through tax savings, reduced running costs, and the convenience of bundled payments.

• Can I lease a used EV through a novated lease arrangement?

  Yes, entering into a novated lease agreement with a used electric vehicle is possible. This option can offer additional savings, as the upfront cost of a used EV may be lower than that of a new one. However, potential lessees should ensure the vehicle meets any requirements set by the lease provider, such as age and condition standards.

• What happens if I leave my job while under an EV novated lease?

  If you change jobs or leave your employer while under a novated lease, the responsibility for the lease payments typically shifts to you until a new arrangement can be made with your new employer. It's important to understand the terms of your lease agreement, as some providers may offer more flexibility in these situations​.

• Are there any additional costs I should know of with an EV novated lease?

  Beyond the regular lease payments, lessees should be mindful of potential additional costs, such as insurance, maintenance, and end-of-lease charges if the vehicle's condition does not meet the agreed standards. It's also wise to consider the residual value of the EV at the end of the lease term, as this can affect the total cost of leasing​.