Novated leases are a great way to get behind the wheel of an electric car and enjoy the benefits that come with it. EVs (pure electric vehicles) and plug-in hybrid vehicles (PHEVs) are becoming increasingly popular.

The government’s Fringe Benefits Tax exemption for EVs makes them even more affordable through a novated lease. Here are some reasons why you should consider it. For more information about the EV novated lease SUVs, click here.

Tax incentives

A novated lease is one of the best ways to get an EV because you only pay for the car and its running costs. The federal government has exempted EVs and PHEVs FBT, making the vehicle more affordable when using a novated lease.

Another advantage of novated leasing is buying the EV at the end of your contract. If you choose to do this, the purchase price is contractually stated in your lease agreement. If you can find a comparable EV selling for less than the expected future book value of your leased vehicle, you may be able to save thousands.

In 2024, the federal EV tax credit can be transferred directly to dealers at the point of sale, lowering the car’s price. It means you could afford a BMW iX or Mercedes-EQ EV that was out of your price range when the vehicle was new.

Convenience

Novated leases are fully maintained agreements, including running costs, fuel, registration and insurance. It makes budgeting a breeze and removes the stress of estimating maintenance and repair costs.

It’s why FleetPartners, a vehicle leasing company, reported that EVs made up half their Novated Lease sales in June 2023. And it’s why a novated lease arrangement is the best way for Australians to drive an EV, especially since the Fringe Benefits Tax (FBT) exemption on eligible electric vehicles will make a novated lease arrangement even more affordable than before.

The price of EVs is still a significant purchase barrier for many Australians, with 84% of respondents to a recent survey believing that they are too expensive to afford. However, a subscription EV service can circumvent this obstacle by making the cost of driving one of these cars more accessible. No upfront cash is needed except for a one-time activation fee required by some subscription services.

Safety

You’ll often find EVs that are loaded with advanced safety features. These include emergency brake assist, active cruise control and lane-keeping assistance. Plus, EVs don’t need oil changes, sparkplugs or exhaust pipes. They also have fewer moving parts that can break down or cause problems.

Suppose you go with a fully maintained novated lease (which Maxxia offers). In that case, the running costs and finances are taken care of – removing the stress of managing a budget and tax deductions yourself. The leasing provider is also responsible for vehicle depreciation, so you’ll never have to worry about your car value falling over time.

If you’re keen to test out the latest electric cars, a range of options are available on a novated lease. For example, the Hyundai Kona Electric has an impressive driving range of up to 484 km, while the Kia EV6 is designed for urban adventures with a 310-mile EPA-estimated driving range. Both models feature flat floors, easy entry, giga-steel seats, and ‘Vehicle to Load’ ports that allow you to power up compatible appliances in the back of the car.

Ease of ownership

Novated leasing lets you pay your EV’s finance and running costs with pre-tax income. It can save you up to 57% compared with traditional car finance. It also means you’ll avoid bill shock by combining all of your vehicle expenses into one monthly payment.

Leasing also offers the flexibility to upgrade to new technology sooner, which is especially important as EVs continue to improve at breakneck speed. Learn more about EV novated lease SUVs by visiting our site.