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novated lease electric car

Top Novated Lease Electric Car Options for 2024

As the landscape of personal transportation continues to evolve, electric vehicles (EVs) are becoming a more attractive option for many, especially under novated lease agreements. Finding the best electric cars for lease that align with both financial incentives and eco-conscious living is more crucial than ever. The shift towards electric vehicles is propelled by their lower running costs, environmental benefits, and innovative technology. 


However, navigating the myriad of novated lease electric car options can be daunting, highlighting the importance of comprehensive research and comparison to make the most informed decision.This article aims to guide you through the process of selecting the right electric car for a novated lease in Australia this 2024. 


Choosing the Right Electric Car

When you’re considering a novated lease for an electric vehicle (EV), understanding the financial benefits can significantly influence your choice. The cost of purchasing an EV has historically been a barrier, with many Australians believing them to be too expensive. However, financing an EV through a novated lease can make it much more affordable than its non-EV counterparts, thanks to substantial tax savings. This affordability stems primarily from the fringe benefits tax (FBT) exemption for eligible EVs and plug-in hybrid electric vehicles (PHEVs).


Comparison of Popular Model of Eletcirc Vehicles


Detailed Model Reviews

When you’re weighing your options for a novated lease electric car, the financial aspects, including the driveaway price, GST savings, weekly lease costs, and total tax savings, play a crucial role in your decision-making process. Here’s a comparative look at some of the most popular models:


  1. Tesla Model Y:  Known for its innovative technology and exceptional performance, the Model Y is a versatile electric SUV offering a spacious interior, advanced Autopilot capabilities, and impressive acceleration to ev drivers. It provides significant overall tax savings of $36,599, with weekly costs starting from $209. The Model Y is perfect for families and tech enthusiasts who value cutting-edge features and long-range capabilities.

  2. Tesla Model 3: A favourite among electric vehicle enthusiasts, the Model 3 combines sleek design with high performance. It features a minimalist interior, advanced safety features, and Autopilot. The Model 3 offers a total tax saving of $34,556 and weekly costs from $197. Ideal for those seeking a balance of performance, range, and affordability.

  3. BYD Atto 3: Offering a more budget-friendly entry into the EV market, the Atto 3 is known for its practicality and efficient performance. It comes with a comfortable interior, user-friendly infotainment system, and solid range for daily commuting. The Atto 3 provides overall tax savings of $27,870 and weekly costs from $158. It’s a great choice for budget-conscious buyers looking for reliable EV options .

  4. BYD Seal: BYD Seal is a proud recipient of the coveted iF Design Award, cementing its superior design and innovation. While detailed financial specifics are yet to be widely known, it aims to offer features such as a modern design, efficient powertrain, and advanced safety systems. The Seal is ideal for early adopters looking for the latest in EV innovation.

  5. MG4: With a focus on affordability without compromising quality, the MG4 delivers a stylish design, comfortable hatchback cabin, and practical features including a 50/50 front and rear weight distribution and rear-wheel drive. It offers overall tax savings of $28,502 and weekly costs from $162. The MG4 is suited for buyers seeking an affordable yet well-equipped EV.
  6. Volvo XC40 Recharge: This model combines luxury with electric efficiency, offering a premium interior, high-quality materials, and advanced safety features typical of Volvo. It provides tax savings of $38,939 and weekly costs starting at $221. The XC40 Recharge is perfect for those wanting a luxurious driving experience without sacrificing environmental responsibility.

  7. MG ZS EV: Another budget-friendly option, the ZS EV presents a robust build, spacious interior, and practical technology features. It offers overall tax savings of $28,502 and weekly lease costs from $162. The ZS EV is ideal for families and individuals seeking a cost-effective and dependable EV.

Each of these models offers a unique set of features, from luxury and performance to affordability and practicality. Your choice will depend on what you value most in a vehicle – be it the driving experience, technology, brand prestige, or cost-effectiveness.


Lease Considerations

When you opt for a novated lease for an electric vehicle (EV) over a car loan, you’re entering an agreement that allows you to cover the cost of the car and most running costs directly from your salary before tax is deducted. This setup involves a three-party agreement between you, your employer, and a lease company, where the lease company provides the vehicle for your personal use, and your employer deducts the lease payments from your pre-tax salary each pay cycle, known as car salary sacrificing.


Lease Contract Tips


  1. Fixed Payments and Term Length: The terms of a novated lease typically range from 1 to 5 years, with fixed payments for the duration of the lease. This predictability helps in budgeting and financial planning.

  2. Inclusion of Running Costs: Car running costs, based on your estimated annual kilometres driven, can be included as part of the lease budget. This feature simplifies the management of vehicle expenses.

  3. End of Lease Options: At the end of your lease term, you have the option to either pay the residual value of the car to own it outright, trade it in and lease a new car, or extend the lease for a new term. The residual payment is an estimate of the car’s value at the end of the lease term, often less than the actual value, potentially allowing you to profit from the trade-in.

  4. Employer Responsibilities: Under the novated lease, your employer takes on the responsibility of lease payments and operating costs such as fuel, service, maintenance, insurance, and registration, deducted from your pre-tax salary via a salary sacrifice arrangement.

  5. Financial Considerations: It’s important to note that underlying interest rates for novated leases can be higher than other financing options, and additional management fees are payable to the novated lease provider.

Understanding these key considerations and tips will ensure that you are well-informed about the intricacies of entering a novated lease for an electric vehicle, enabling you to make a decision that aligns with your financial and personal mobility needs.


Conclusion

Through this exploration, we’ve navigated the essentials of choosing the best electric vehicle (EV) for a novated lease in 2024, underscoring the significance of financial incentives that these vehicles bring to the fore. The comparison between popular models—ranging from the sought-after Tesla Model Y and Model 3 to the emerging contenders like the Seal and traditional favourites such as the MG4 and Volvo XC40—reveals a diverse market. This variety caters to different preferences and financial plans, underlining the tailored advantages each model offers, from substantial tax savings to innovative technology and environmental benefits.

Moreover, understanding the intricacies of novated leasing—factoring in lease durations, running costs, and employer responsibilities—empowers individuals to make informed decisions that align with their financial and mobility needs. The shift towards electric vehicles, supported by favourable leasing options, not only presents a sustainable alternative to traditional fuel-powered cars but also paves the way for a more eco-conscious lifestyle. As the landscape of personal transportation evolves, the move towards electric vehicles emerges as an impactful step in reducing carbon footprint and fostering a greener future, making the transition to EVs an increasingly attractive proposition for drivers worldwide.

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