The federal government has recently waived the Fringe Benefits Tax for eligible electric vehicles (EVs) on novated leases, further encouraging EV uptake. This allows employees to save on car purchase and running costs, including registration, insurance, servicing and tyres.
EVs offer many benefits to the environment and their owners, but are they worth it? Read on to find out! For more information about if the novated lease electric car worth it? Click here.
It’s tax-friendly
The popularity of electric cars has skyrocketed lately – probably partly because they cost less than petrol and diesel vehicles. But if you want to own an EV and save even more money, consider getting one through a novated lease.
With a novated lease, car finance and running costs such as registration, insurance, fuel, maintenance, and tyres are bundled into one convenient monthly payment. This helps reduce drivers’ taxable income and saves them thousands of dollars annually.
Another benefit of a novated lease is allowing employees to choose from various vehicles that suit their needs and budget. This flexibility means they can get an EV that might have been outside their price range under a standard car loan with payable interest.
As a bonus, the government recently announced that EVs are now exempt from Fringe Benefits Tax (FBT) for employees who lease them through a novated lease. This will further help employees afford the high cost of EVs, and it could make a novated lease an excellent choice for workers.
It’s environmentally friendly
Electric vehicles (EVs) are more environmentally friendly than traditional petrol cars, and with novated leasing, you can save on fuel and maintenance costs. You can also access government financial incentives and discounts through a novated lease. For more information about if the novated lease electric car worth it?, click here.
EVs have fewer moving parts than petrol or diesel cars and do not require complex exhaust systems that can break down due to carbon build-up. However, they do still need servicing and will require new tyres from time to time. With a fully maintained novated lease, these expenses are included in your car repayments, so there’s no need to budget separately.
In addition to the potential savings on car maintenance, EVs are quieter and smoother driving. Some models can even put electricity back into the grid, helping to reduce Australia’s reliance on imported fuel. However, before making the switch, you must research and consult a specialist. You’ll likely find an EV that meets your needs and fits within your budget.
It’s affordable
With EV lease deals improving, it’s easy to see why the number of EVs on Australian roads has spiked recently. The Labour government has exempted EVs and PHEVs FBT (up to the Luxury Car Tax threshold of $89,332), making them much more affordable via a novated lease.
A novated lease allows you to make monthly payments instead of paying for the car upfront like a car loan. These payments are based on the vehicle’s residual value at the end of the lease term, which is a percentage of its original retail price. This means the monthly payments are significantly lower than those for financing or purchasing a new car.
In addition, EVs have low running costs, so you can save on fuel, registration, insurance and service expenses. This, combined with the fringe benefits tax exemption and GST savings available through a novated lease, makes an electric vehicle more intelligent for many employees. For more information about if the novated lease electric car worth it?, click here.
It’s convenient
Leasing an electric car is a convenient way to drive the latest models without worrying about depreciation. It also allows you to avoid paying interest on a loan and save on petrol costs. However, you should know a few issues when leasing an EV. For one, the technology is rapidly evolving, and it’s easy to end up with an outdated model before your lease ends.
Another issue is that leased vehicles aren’t yours when the lease ends. This can be a problem if you want to customize or replace the car with a different model.