Novated Lease Electric Cars 2025: Top Options to Explore

27 Jan

Written By NFA

The world of motoring is changing, and with that shift comes an exciting new way to own and drive your car. Electric vehicles (EVs) are quickly becoming the future of transportation, offering eco-friendly and cost-effective alternatives to traditional fuel-powered cars. But how can you access one without the hefty upfront costs? The answer lies in novated leasing. In this blog, we explore the benefits of opting for a novated lease electric car in 2025, delve into the top models to consider, and examine how salary sacrifice for electric cars in Australia can help save you money.

Why Consider a Novated Lease for Electric Cars in 2025?

As we enter 2025, the electric car market in Australia is stronger than ever. With technological advancements, growing infrastructure, and more affordable models, electric vehicles are now an attractive choice for Australian drivers. But for many, the cost of purchasing an electric car upfront can still be a barrier. This is where a novated lease can be a game-changer.

A novated lease allows you to drive a brand-new car while benefiting from tax advantages and lower overall costs. The novated lease works through your employer, who deducts your monthly lease payments directly from your pre-tax salary. This results in lower taxable income and, in turn, less income tax paid. Plus, you can bundle all vehicle-related costs such as insurance, registration, and maintenance into your lease, making it easier to manage your finances.

With electric cars offering lower running costs, including cheaper charging and fewer maintenance needs, a novated lease for an electric vehicle can provide even more significant savings. So, why not take advantage of the benefits of a new lease for electric cars in 2025?

What is a Novated Lease and How Does It Work for Electric Cars?

A novated lease is an agreement between you, your employer, and a leasing company. Under this arrangement, your employer makes the car payments directly from your pre-tax salary, which reduces your taxable income and ultimately lowers your tax liability. For employees, this means they can drive a new vehicle with more affordable payments, while employers can benefit from reduced payroll tax contributions.

For electric cars, a novated lease works precisely the same as it does for traditional vehicles, but with the added advantage of the car’s lower running costs. With fewer moving parts, no petrol to buy, and often longer service intervals, an electric vehicle (EV) can be even more cost-effective for a novated lease.

The salary sacrifice electric car Australia scheme allows employees to sacrifice part of their pre-tax salary to cover the lease payments and other associated vehicle costs. This means you’re paying less income tax, and the savings add up over your lease term.

Top Electric Car Models to Consider for Your Novated Lease in 2025

When selecting a vehicle for a novated lease, it’s essential to choose a model that suits your lifestyle, budget, and driving needs. As electric cars gain more popularity, there are now several options for drivers seeking an eco-friendly, cost-effective way to get around. Here are some of the top electric car models to consider for your novated lease in 2025:

Tesla Model 3

The Tesla Model 3 has been a leader in the electric vehicle market for years, and its popularity continues to grow in Australia. With an impressive range of up to 600 km on a full charge, the Model 3 is perfect for those who require a reliable, long-distance driving option. It’s equipped with advanced safety features, a spacious interior, and cutting-edge tech, including Tesla’s Autopilot system. The Model 3 is a top choice for performance and its tax-saving potential through a novated lease.

BMW i4

The BMW i4 combines the luxury and performance of the BMW brand with the innovation of an electric car. With a range of around 590 km, the i4 perfectly balances power and efficiency. Inside, the i4 boasts a premium cabin, advanced driver assistance features, and exceptional handling, making it a top pick for those looking for a luxurious ride while still enjoying the benefits of a novated lease. The i4’s sleek design and incredible performance make it an attractive option for 2025.

Audi e-tron GT

For those who want to enjoy a high-end driving experience, the Audi e-tron GT is an excellent choice. As one of the most luxurious electric vehicles available in Australia, the e-tron GT offers a remarkable blend of style, performance, and practicality. Thanks to its dual electric motors, it offers an impressive 488 km range and delivers incredible acceleration. Its futuristic design and high-tech interior make it an outstanding option for a novated lease if you want to drive a premium electric vehicle in 2025.

Hyundai Ioniq 5

The Hyundai Ioniq 5 is a standout electric car with a fresh, futuristic design and an impressive range of 614 km on a single charge. The Ioniq 5 has high-tech features, a spacious cabin, and fast-charging capabilities, making it an excellent option for daily commuters and families. It’s also one of the more affordable electric vehicles available in Australia, making it an attractive option for novated leasing in 2025.

Kia EV6

The Kia EV6 is another great option for those seeking an affordable and stylish electric car for a novated lease. With a range of up to 528 km, the EV6 offers fantastic performance, a high-tech interior, and plenty of space. Its modern design and eco-friendly credentials make it a popular choice for Australians who want to transition to an electric vehicle without breaking the bank.

Benefits of a Novated Lease for Electric Cars in 2025

Opting for a novated lease for an electric car in 2025 offers numerous advantages:

Lower Monthly Payments: Using pre-tax income to cover your lease reduces your taxable income, resulting in lower monthly payments.
Tax Benefits: With a novated lease, you can save on taxes through the salary sacrifice arrangement, making it an even more cost-effective choice for electric vehicles.
Affordable Maintenance and Running Costs: Electric vehicles generally require less maintenance than traditional cars, and charging costs are usually lower than refuelling with petrol.
Drive a New Car: A novated lease allows you to drive a brand-new car every few years without the financial burden of ownership, making it a great way to keep up with the latest electric vehicle technology.
Flexibility: You can tailor your novated lease agreement to fit your needs, including covering vehicle insurance, registration, and servicing.

Car Finance Options

When exploring a novated lease electric car in 2025, understanding your car finance options is crucial. There are several ways to finance a vehicle, each with pros and cons.

Novated Lease:

This is one of the most popular options in Australia for employees looking to drive a new car. A novated lease allows you to drive a new or used vehicle and pay for it via salary sacrifice. The lease is tied to your employment, and payments are made from pre-tax income, lowering your taxable income. For electric cars, this can be a cost-effective solution.

Chattel Mortgage:

A chattel mortgage is a financing option where the vehicle is used as collateral for the loan. You own the car from the outset, but you make monthly repayments. This type of loan is typically used for business owners, as it allows them to claim tax deductions on interest and depreciation.

Personal Loan:

A personal loan can also be used to finance a car purchase, offering flexibility in terms of repayment. It is a good option for those who prefer not to be tied to their employer, like in a novated lease. However, repayments are made from after-tax income, and you won’t benefit from the same tax savings available with a novated lease.

Hire Purchase:

Hire purchase allows you to hire the vehicle with the option to purchase it at the end of the loan term. This is another great option for those who want to own the car after a set period while still making monthly payments.

Each option has unique advantages depending on your personal or business circumstances. For those interested in the savings that come with novated leasing, it’s a good idea to use a novated lease calculator to see how these options compare for financing an electric car.

Cost Management in Novated Leasing

One key advantage of a novated lease electric car in 2025 is managing costs effectively. Novated leasing helps to streamline car-related expenses by consolidating payments, which are made from pre-tax income. This results in a lower taxable income and, thus, potential savings on income tax.

Here’s how you can manage costs effectively:

Fixed Monthly Payments:

With a novated lease, you can lock in a fixed monthly payment for the term of the lease, which helps with budgeting and financial planning.

Bundled Services:

Many novated leases offer the option to bundle in running costs such as maintenance, fuel, and insurance, which further simplifies budgeting by providing all-inclusive payments.

Tax Efficiency:

Since payments come out of your pre-tax salary, this reduces your taxable income and can result in tax savings, making the overall cost of leasing more affordable compared to other finance options.

By understanding how cost management works in a novated lease, you can make an informed decision that will benefit your financial situation in the long term.

Salary Sacrifice Electric Car Australia: How It Can Save You Money

In Australia, salary sacrifice is an attractive option for employees who want to drive an electric car with minimal financial strain. By sacrificing part of your salary to cover your novated lease payments, you can significantly reduce your taxable income, lowering your overall tax bill.

This system can make owning an electric car more affordable than purchasing one outright or financing it with a traditional car loan. The savings from reduced income tax, combined with lower running costs associated with electric vehicles, make salary sacrifice an excellent option for those who want to own an eco-friendly vehicle.

How to Choose the Right Electric Car for Your Novated Lease in 2025

When selecting an electric car for your novated lease, consider factors such as:

Driving Range: Ensure the vehicle’s range suits your driving needs, particularly for longer commutes or weekend trips.
Charging Infrastructure: Check for sufficient charging stations along your route, especially if you plan to drive long distances.
Budget: Consider your budget for monthly lease payments and additional costs such as insurance and maintenance.
Car Features: Evaluate the car’s technology, safety features, and comfort to ensure it meets your needs.
Brand Reputation: Choose a brand with a strong reputation for reliability and after-sales service.

To simplify your decision-making process, use a novated lease electric car 2025 calculator to compare your options and find the best car and lease deal.

Conclusion

If you’re considering switching to an electric car in 2025, a novated lease offers an attractive, affordable, and tax-efficient way to transition. With numerous high-quality electric vehicle options on the market, the novated lease makes driving a new car easier and more financially feasible than ever before.

If you’re ready to take the next step toward driving an electric car, Novated Finance Australia can help you save money, enjoy a brand-new vehicle, and contribute to a more sustainable future. Contact us today to explore your options for leasing an electric car in 2025.

FAQs

A new lease for electric cars allows employees to lease an electric vehicle through their salary package. The lease payments are made from pre-tax income, reducing taxable income. This makes it an affordable way to drive an electric car while saving on taxes.
Yes, salary sacrifice can be used for an electric car in Australia. By sacrificing a portion of your pre-tax salary, you can reduce your taxable income while driving a new electric car. This arrangement is popular for novated leasing.
Leasing an electric car through a novated lease provides tax savings, lower monthly payments, and access to the latest electric vehicle models. It’s an efficient way to drive eco-friendly vehicles with less financial burden.
Yes, electric cars are eligible for novated leases in Australia. Popular electric models from brands like Tesla, Hyundai, and Nissan are available for novated leasing. These vehicles provide the benefits of tax savings and flexible payment plans.
To calculate savings, use a novated lease calculator. This tool estimates your monthly payments, tax savings, and overall cost for leasing an electric car. It’s an essential tool to compare the financial advantages of salary sacrifice with leasing.

NFA