Eco-Friendly Down Under: Tesla Novated Lease Experiences in Australia Reviewed

Novated leases in Australia offer a unique opportunity for employees to own a Tesla while benefiting from potential tax savings. With Tesla's popularity surging, many Australians consider a novated lease as a financially savvy method to acquire an electric vehicle (EV). 

In this blog post, we explore various facets of Tesla's novated leases, reviewing the experiences, costs, and benefits within the Australian context.

What is a Tesla Novated Lease?

A novated lease is essentially a three-way agreement between an employee, their employer, and a finance company. The employer makes lease payments on behalf of the employee, who sacrifices part of their pre-tax salary to cover the cost. This can result in significant tax benefits for the employee while adding no extra cost to the employer. 

For Teslas, such as the popular Model 3 and Model Y, this setup provides a cost-effective path to ownership and includes running costs like registration, insurance, and maintenance.

Financial Analysis of Tesla Novated Leases

Considering the costs involved in a Tesla novated lease, assessing whether it's a financially beneficial option is important. For a Tesla Model 3, the total on-road cost might be approximately $65,832, with weekly costs estimated around $212. Over the lease term, you could see savings of up to $52,000. 

Comparatively, a Tesla Model Y novated lease might be slightly more expensive upfront but offers its advantages, such as potential profits from the sale of the vehicle at the end of the lease term.

Benefits and Drawbacks

The main benefits of choosing a novated lease for a Tesla in Australia include the consolidated payment of car expenses, significant tax savings, and inclusive coverage of running costs like charging and maintenance. 

However, limitations exist, such as dependency on continued employment for lease viability and potential complexities in transferring the lease if you change jobs. 

Additionally, certain state EV incentives might not apply when acquiring a vehicle through a novated lease.

Tesla Models for Novated Leases

Currently, popular Tesla models available for novated leases include the Tesla Model 3 and Model Y. These models are favoured for their performance and range and lower running costs compared to traditional internal combustion engine vehicles. 

The Model 3 offers a range of up to 513km on a single charge, appealing to daily commuters and eco-conscious drivers alike.

How to Set Up a Tesla Novated Lease?

Opting for a novated lease might just be your best move. Here's a straightforward guide on how to set up a Tesla novated lease, ensuring you understand each step of the process:

1. Select Your Tesla Model: Choose the Tesla model that best suits your lifestyle and needs. Whether it's the efficient Model 3 or the spacious Model Y, picking the right model is crucial.

2. Initial Contact and Form Submission: Once you've picked your model, fill out a quick form to express your interest. This form is your first step towards initiating the process, and it helps us schedule an initial consultation call with you.

3. Credit Application and Approval: Next, you must complete a credit application. Approval of this application is key as it leads to signing your lease documentation, which officially moves your application forward.

4. Employer Engagement: We will contact your employer to provide them with all the necessary onboarding information. They will need to understand and sign a deed of activation to agree to the lease terms and the salary packaging arrangement.

5. Documentation and Finalisation: After your employer's deed of activation is signed, your lease documentation is finalised. This documentation is crucial as it contains all the terms and conditions of your novated lease.

6. Vehicle Delivery: Your new Tesla will be prepared for delivery upon settling your finances. This is the exciting moment when your new Tesla finally comes to you.

7. Payroll Coordination: Lastly, we issue payroll advice to either your department or directly to the payroll supplier (like Xero). This step ensures that all payment arrangements are set up correctly and seamlessly integrated into your payroll system.

Ready to experience the benefits of a Tesla novated lease? Contact Novated Finance Australia today to find out how you can drive away in your dream Tesla while enjoying substantial savings and tax advantages!

Frequently Asked Question

• What's included in a Tesla Model 3 novated lease package?

  The lease typically covers the vehicle's registration, comprehensive insurance, roadside assistance, and regular maintenance costs.

• How much can I save with a Tesla novated lease in Australia?

  Savings can be substantial, depending on individual tax circumstances and the model of Tesla chosen. Generally, you could save thousands of dollars over the lease term compared to purchasing a vehicle outright.

• Are there any restrictions on who can take a novated lease?

  Novated leases are usually only available to permanent employees whose employers agree.

• Can I claim the cost of charging my Tesla under a novated lease?

  Yes, EV charging costs can be claimed through direct expense submissions or a flat rate per kilometre for zero-emission vehicles like Teslas.