Leasing a car often seems like the perfect way to get behind the wheel of your dream vehicle, offering flexibility and financial perks. But when it comes to electric vehicles, some of us might hesitate, weighed down by misconceptions and myths about leasing an electric vehicle. What if hidden costs or unanticipated challenges turn your green driving ambitions into a stressful experience? These doubts can creep in as you navigate your lease
As electric vehicles (EVs) continue to rise in popularity, it's important to separate fact from fiction. Without the right information, what should be a smooth and cost-saving choice might feel like a gamble. To help clear the air, we’ve busted the top 10 myths about leasing an electric vehicle. Let’s explore the reality behind these misconceptions along with other topics on leasing electric vehicles, so you can make a well-informed, confident decision and enjoy the benefits of leasing an EV hassle-free.
As Australians become more conscious of the environmental impact of traditional petrol vehicles, the rise of electric vehicles (EVs) in the country has been nothing short of remarkable.
Recent data showcases a significant uptick in the sales of electric cars, with models from global brands like Tesla, BYD, and BMW leading the charge. Here’s a closer look at the key figures and why the future of driving in Australia looks electric.
So, what’s driving the rise in electric vehicle adoption in Australia? Several factors contribute to the surge in EV sales:
Despite the electric vehicles’ growing popularity, there are still many myths about leasing an electric vehicle that can leave potential drivers feeling uncertain. Is it really affordable? Are there hidden costs? Are electric vehicles only for big earners?
It’s time to uncover the top 10 myths about leasing electric vehicles, and show you why leasing an EV might just be the smartest move you make.
Reality: While EVs may have a higher upfront price compared to petrol cars, the story changes when you consider total running costs and tax savings through a novated lease. With lower fuel and maintenance costs, plus the ability to package running costs into your lease, the overall expense of an EV can be significantly lower. The Fringe Benefits Tax (FBT) exemption for eligible EVs makes it even more affordable, especially for those looking to cut down on taxable income.
Reality: You don’t need a huge salary to benefit from a novated lease. Anyone who pays income tax can enjoy savings, even on a modest income. While higher earners do save more because of their tax bracket, anyone who pays tax will benefit from reduced taxable income and lower car running costs through salary packaging.
Reality: Charging infrastructure has grown significantly across Australia. In addition to public charging stations, many people install home chargers, and novated lease holders can claim back charging costs. In fact, novated leases offer two easy ways to claim charging costs—either by submitting actual expenses or by using a flat-rate reimbursement per kilometre driven. This makes owning and maintaining an EV convenient and affordable.
Reality: Modern EVs, especially models like the Tesla Model 3 and Polestar 2, offer impressive ranges of up to 500km or more on a single charge. Charging networks along highways make it easy to plan longer trips. With a novated lease, you'll also have the flexibility to package costs like servicing and roadside assistance, providing extra peace of mind on long drives.
Reality: Supply issues that once plagued the EV market have vastly improved. Brands like Tesla, BYD, and Volvo have reduced wait times, and delivery on many models can now happen within months rather than years. So, your EV journey could begin much sooner than you think!
Reality: Electric vehicles have fewer moving parts than petrol cars, which translates into lower maintenance costs. A novated lease packages all maintenance into your monthly payments, meaning you won't face unexpected repair bills. This, combined with the FBT exemption, means your EV can be both easy and affordable to maintain.
Reality: Modern EV batteries are built to last, with most manufacturers offering warranties of eight years or more. Battery technology is advancing rapidly, and with proper care, today’s EV batteries will maintain significant capacity even after years of use. Plus, with a novated lease, you can easily upgrade to a new model at the end of your lease term, so you’ll always have access to the latest technology.
Reality: Charging an EV is far cheaper than buying petrol, especially when you charge at home. With a novated lease, even your charging costs can be salary-packaged, maximising your savings. Additionally, government incentives and FBT exemptions make the total cost of ownership for an EV far lower than many expect.
Reality: Novated leases are designed to be flexible! You can include a range of running costs—insurance, registration, tyres, and more—into one easy payment. You also get the option to choose your insurance provider and other service options, giving you control over your expenses. Plus you have a choice of lease term ranging from 1 to 5 years, allowing you to tailor the lease duration to suit your needs.
Reality: EV technology has matured rapidly, and Australia now offers a wide range of reliable, well-established electric cars. From Tesla to Hyundai and Volvo, the models available today are the result of years of innovation, and novated leases offer a risk-free way to access this cutting-edge technology. Plus, you’re not locked in—most leases last only 3 to 5 years, so you can upgrade to the latest EV models without the long-term commitment.
Now that we've cleared up the myths about leasing an electric vehicle, let's highlight the incredible benefits that come with novated leasing one. When you choose a novated lease for your electric car, you're not just breaking myths—you’re unlocking a host of financial and practical perks. From saving money to added convenience, novated leasing makes driving an electric vehicle a smart and sustainable choice.
Here are some of the top advantages of going electric with a novated lease:
Leasing an EV can save you thousands, starting with GST exemption on the purchase price, which can significantly reduce upfront costs. Additionally, some manufacturers and leasing company (like us) offer exclusive deals, like $3,000 off a Tesla Model 3 and Tesla Model Y, further sweetening the deal.
With a novated lease, your lease payments come out of your pre-tax salary, reducing your taxable income. This means more take-home pay and additional tax savings throughout the lease term.
Leasing allows you to drive the latest EV models without the hassle of long-term ownership. As new, more advanced electric vehicles hit the market, leasing makes it easy to upgrade and enjoy cutting-edge technology.
Leasing simplifies budgeting by bundling running costs like maintenance, registration, and insurance into one manageable monthly payment. This makes it easier to manage your finances without worrying about unexpected expenses.
Novated lease involves a three-way agreement between the employee, employer, and a finance company. Here's a step-by-step guide to help you understand how a novated lease works:
You can request a quote to match your budget and vehicle preferences, whether you’ve already chosen a car or need help exploring your options. This ensures your lease is financially suitable and aligned with your needs.
The lease provider contacts your employer, guiding them through the setup process. They handle all communication and ensure your employer’s role is as straightforward as possible.
Once you've provided the necessary details, the approval process is fast, often completed within a few hours. This ensures that you can start driving your new vehicle as soon as possible.
Once approved, you're ready to hit the road! Enjoy your new car with the added convenience of having your running costs bundled into the lease and the benefit of reduced taxable income.
Don’t let these myths about leasing an electric vehicle derail you from getting the car you’ve always wanted. At Novated Choice, we simplify the leasing process, offering complete transparency and expert guidance every step of the way. Our dedicated team is here to help you secure the best deal, fully understand the terms, and avoid common mistakes.
Whether you're eyeing a new Tesla or a BYD, get in touch with us today for a personalised quote and start your journey toward a smarter, stress-free leasing experience. No more second guessing.
Let’s talk.
