EV novated lease: Novated Lease SUVs – Why You Should Lease an EV

Leasing an electric vehicle (EV) is an ideal way to stay up-to-date with cutting-edge tech, and with long factory warranties, you can rest easy knowing your EV will remain covered for many years.

EV novated lease SUVs salary packages the car’s operating costs – such as electricity, mileage, servicing and maintenance costs, registration and CTP premiums – into convenient monthly payments to save you lots.

Flexibility

Electric vehicles’ technology advances at an astoundingly fast rate. That means what was cutting edge one year may become outdated the following.

Novated leases allow you to upgrade every two or three years without incurring additional trading-in costs. Plus, staying informed on new EV technology advances while cutting running costs is all made possible!

If you choose an electric vehicle with a novated lease agreement, the Australian government’s Electric Car Discount policy can offer significant tax breaks: an FBT exemption applies when they are first used and cost below the Luxury Car Tax threshold of $84k in 2022-23.

Kia e-Niro, Hyundai Kona Electric and all models of Tesla Model 3 all qualify. Furthermore, Volvo’s all-electric offshoot Polestar2 also qualifies.

Range

EV novated lease SUVs can travel long distances on one charge overnight. If you desire the size, strength and capability of an SUV but do not wish to contribute harmful emissions, leasing an EV could be your perfect solution.

As part of Australia’s Electric Vehicle Incentive program, leasing an eligible electric vehicle makes more financial sense than ever before. Hyundai’s 2023 IONIQ 5 is now available with an effective monthly cost of $538, while Kia offers their comparable EV6.

Novated lease EVs that qualify for FBT exemption – such as all battery electric and plug-in hybrid vehicles first held after 1 July 2022 – may even save thousands compared to similar cars without rebates.

Safety

Electric vehicles use an alternative power source than those powered by petrol or diesel engines, creating fewer emissions that may harm people, the environment, and their pets.

Electric vehicles (EVs) are more cost-efficient than their gas counterparts and will save money over time. Their reduced number of moving parts makes EVs simpler to maintain; plus, many EV manufacturers provide warranties covering up to 8 years or 200,000 km for maintenance costs.

If you’re considering investing in an electric vehicle (EV), novated leasing could be the faster and smarter way to acquire one. A novated lease agreement between you and your employer enables salary sacrifice of the leasing, fuel/electricity costs, maintenance, registration, tyres and insurance costs from pre-tax salary – find out more here about how it works.

Value

Battery technology advances and investments in fast charging networks have rendered range anxiety obsolete, and electric vehicle (EV) drivers can save up to $10 per 100km compared with petrol prices. Furthermore, those combining solar with their EV leasing will realize even greater savings.

Federal legislation’s Electric Vehicle Fringe Benefits Tax Exemption (EVFBT) has also made electric cars more cost-effective; Ford recently reduced 2023 Mustang Mach E lease rates, and Tesla Model 3 offers have become more attractive as a result of EVFBT.

Salary packaging your EV or PHEV with Flare novated lease can bring considerable tax-savings on its running costs – electricity usage, mileage costs, servicing and maintenance expenses, registration and CTP insurance in NSW (when applicable), GST reimbursement as well as regular EV novated lease SUVs payments – not to mention eventual ownership at the end of its term!

No Depreciation

Unlike car loans that come out of your post-tax wages, novated lease payments are made from pre-tax salary dollars. It saves you money on income tax and gives you more disposable cash.

A novated lease also eliminates the need to pay goods and services tax (GST) on your vehicle purchase and running costs. That can reduce your car finance bill by as much as 10%.

While novated leasing requires the cooperation of your employer, once everything is approved, you get to choose the vehicle you want, order it, and start driving! All the while, your novated leasing specialist takes care of the rest. It includes maintenance, registration, insurance and replacement tyres. And when your lease ends, or you leave (or are terminated by) your employer, the ownership of the vehicle is transferred directly to you.