The Rise of Hybrid Cars: Best Models for Novated Lease
Are you tired of high fuel costs and never-ending emissions? Discover the eco-friendly solution with hybrid cars. Hybrid vehicles are revolutionising the automotive market in Australia through novated leasing.
This article delves into the best hybrid models for novated leasing and how they can benefit you.
What is Novated Leasing?
Novated leasing is a three-way agreement between you, your employer, and a finance company, allowing you to lease a vehicle using pre-tax income. Unlike standard leasing, where you return the car at the end of the term, with novated leasing, you typically own the car at the end of the period through a balloon payment. This arrangement offers significant tax savings and easier vehicle management.
Why Choose a Hybrid Car for Novated Leasing?
Fuel Efficiency
Hybrid cars are known for their exceptional fuel efficiency, reducing your overall running costs. Combining an internal combustion engine and an electric motor allows hybrids to optimise fuel consumption, especially during stop-and-go traffic. This dual power source lets the engine switch off and rely solely on the low-speed electric motor, further conserving fuel.
Tax Savings
A novated lease can reduce your taxable income, offering additional financial benefits. By making lease payments from your pre-tax salary, you effectively lower your taxable income, which can result in significant tax savings. This economic advantage makes novated leasing an attractive option for employees looking to maximise their take-home pay.
Benefits of Hybrid Cars
Hybrid cars offer many benefits that make them an attractive option for new car buyers. One of the primary advantages is their exceptional fuel efficiency, which translates to lower running costs compared to traditional petrol or diesel vehicles.
Additionally, new car buyers can take advantage of the Australian government's various Hybrid tax incentives, making hybrid cars even more cost-effective. These incentives include exemptions from certain taxes and rebates, which can significantly reduce the overall cost of owning a hybrid vehicle.
Electric Vehicles vs Hybrids
Several factors come into play when comparing electric vehicles (EVs) and hybrid vehicles. EVs, such as the Tesla Model 3, are powered solely by electricity and rely on EV infrastructure for charging. This can lead to EV range anxiety, mainly if charging stations are not readily available.
Conversely, hybrids, like the Toyota Camry Hybrid, combine a petrol engine with an electric motor, offering greater vehicle versatility and alleviating range concerns.
Depreciation rates for hybrids and EVs can vary, with hybrids often experiencing slower depreciation due to their dual power sources. Maintenance costs are lower for EVs, as they have fewer moving parts than hybrids. However, hybrids typically have lower recharging costs and can benefit from solar system setups at home. Off-street parking is another consideration, as it provides a convenient space for at-home charging of EVs. Ultimately, operating costs and charging infrastructure availability are critical factors influencing the choice between EVs and hybrids.
Best Hybrid Models for Novated Lease in Australia
1. Toyota RAV4 Hybrid
The Toyota Camry is a popular choice renowned for its reliability, spacious interior, and impressive fuel economy. It is ideal for a novated lease, and its low running costs and substantial resale value offer significant financial advantages.
Additionally, with a balloon payment option, you can own the vehicle at the end of the lease term, making it an innovative and cost-effective leasing choice.
Toyota has pioneered hybrid technology, and the RAV4 Hybrid is no exception. This model combines a 2.5-litre petrol engine with an electric motor, offering impressive fuel efficiency and a smooth driving experience. With ample cargo space and advanced safety features, the RAV4 Hybrid is ideal for families and individuals who need a versatile, reliable vehicle.
2. Mitsubishi Outlander PHEV
The Mitsubishi Outlander PHEV provides the flexibility of driving in electric mode for short trips and switching to petrol for longer journeys, offering both convenience and efficiency. This setup delivers substantial fuel savings, and with additional government incentives, it becomes an attractive option for novated leasing.
The Mitsubishi Outlander PHEV (Plug-in Hybrid Electric Vehicle) is one of the most popular plug-in hybrids on the market. It features a dual-motor all-wheel-drive system and a substantial electric-only driving range, making it perfect for city commutes and longer trips.
3. Honda Accord Hybrid
The Honda Accord Hybrid is a spacious and comfortable sedan known for its impressive fuel efficiency, making it ideal for city and highway driving. Its smooth and efficient ride suits a range of driving needs, and through a novated lease arrangement, you can eventually own the car, adding to its practicality and appeal.
The Honda Accord Hybrid is a mid-sized sedan that offers luxury and efficiency. Its 2.0-litre Atkinson-cycle engine, paired with an electric motor, delivers excellent fuel economy without compromising performance. The Accord Hybrid's spacious interior and advanced infotainment system make it a comfortable and enjoyable car for daily commutes and long journeys.
4. Hyundai Ioniq Hybrid
The Hyundai Ioniq Hybrid combines affordability with efficiency, featuring a sleek design and advanced technology that makes it stand out. Its competitive pricing and low running costs make it an appealing choice for novated leasing, offering an intelligent balance of value and modern features.
The Hyundai Ioniq Hybrid is a compact car with a stylish design and a range of tech features at an affordable price point. Its fuel-efficient hybrid powertrain, comfortable ride, and user-friendly infotainment system make it a practical choice for budget-conscious drivers. The Ioniq Hybrid's low running costs and impressive warranty enhance its appeal for innovative leasing.
5. Toyota Corolla Hybrid
The Toyota Corolla Hybrid is a compact yet efficient vehicle ideal for urban driving. Its outstanding fuel economy and reliable performance promise low ongoing expenses, making it an economical choice for innovative leasing.
The Toyota Corolla Hybrid is a compact car that excels in urban environments. Its hybrid powertrain delivers outstanding fuel economy, making it an economical choice for city driving. The Corolla Hybrid also boasts a reliable reputation, well-built interior and safety features. Its compact size and nimble handling make navigating congested streets and tight parking spaces easy.
Inclusions with Novated Leases
When you opt for a novated lease with Novated Finance Australia, you get a comprehensive package that covers:
Charging: Access to public charging stations for plug-in hybrids.
Service: Regular vehicle servicing to keep your car in top condition.
Maintenance: All necessary maintenance work is covered.
Tyres: Replacement tyres included.
Insurance: Comprehensive insurance coverage for peace of mind.
Comparison of Hybrid Models
| Model | Fuel Efficiency (L/100km) | Electric Range (km) | Seating Capacity | Key Features |
|---|---|---|---|---|
| Mitsubishi Outlander PHEV | 1.9 | 54 | 5 | Dual-motor AWD, government incentives |
| Honda Accord Hybrid | 4.9 | N/A | 5 | Luxurious interior, advanced infotainment |
| Hyundai Ioniq Hybrid | 3.4 | N/A | 5 | Affordable tech features, low running costs |
| Toyota Corolla Hybrid | 4.2 | N/A | 5 | Reliable, compact, and ideal for city driving |
Trends in Hybrid Car Adoption
The adoption of hybrid cars has been accelerating significantly, with many consumers appreciating the balance they offer between traditional fuel vehicles and fully electric vehicles. Hybrid cars have been increasingly outselling their petrol-only counterparts, driven by a surge in consumer awareness and the growing demand for eco-friendly transportation.
Sales of hybrid vehicles have skyrocketed year to date, reflecting a broader trend toward sustainable automotive solutions. The parallel growth also influences this shift in the market for electric cars, as hybrids provide a practical interim solution for those hesitant to transition directly to full EVs. As governments and manufacturers continue to push for greener alternatives, the trend of rising hybrid car adoption is expected to maintain its momentum.
Let’s Wrap It Up
Hybrid cars are a fantastic option for those looking to save on fuel costs, reduce their carbon footprint, and benefit from tax savings through novated leasing. Whether you choose the reliable Toyota RAV4 Hybrid or the versatile Mitsubishi Outlander PHEV, there's a hybrid car that will suit your needs and lifestyle.
Ready to make the switch to a hybrid car? Contact us today to learn more about our Novated Finance Australia lease options and find the perfect hybrid vehicle for you!
Frequently Asked Questions
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Description text goes hereA novated lease is a three-way agreement between you, your employer, and a leasing provider. It allows you to bundle all car expenses into one payment from your pre-tax salary, potentially saving on tax.
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Yes, electric SUVs like the Volvo XC40 Recharge qualify for novated leasing and may provide additional tax savings due to FBT exemptions.
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We offer a variety of luxury SUVs, including electric and hybrid models, so you can find one that meets your preferences and lifestyle.
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Novated leasing can reduce your taxable income by packaging vehicle expenses into a pre-tax payment, which is particularly beneficial for luxury SUVs like electric or hybrid models.
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Yes, we offer flexible lease terms to ensure your lease fits your personal and professional needs.