With a novated lease electric vehicle, you can save on every aspect of running your car – from fuel to tax and upkeep. It’s an easy way to reduce carbon emissions from transport while reaping thousands of dollars in savings!
Last year, the Government introduced an electric car discount policy with an FBT exemption for certain models purchased under a novated lease agreement. It means businesses and employees will pay less tax when buying low-emission vehicles!
Save on Fuel
Electric vehicles (EVs) save money on fuel since they don’t use petrol or diesel. Not only are EVs much more affordable to charge than their petrol-powered counterparts, but their fewer moving parts mean fewer breakdowns and higher maintenance requirements than petrol cars.
Australia is seeing an influx of charging stations, meaning you can get your full battery charge in minutes without ever needing to stop for petrol again! A fully charged electric vehicle (EV) could travel 300 km on one charge!
One major reason EVs are becoming increasingly popular is their cost-efficiency; they require less fuel to operate than petrol-powered cars and can also be seen as more eco-friendly due to the absence of emissions produced.
If you want to reduce fuel bills, a novated lease electric vehicle is an excellent choice. You will save on costs associated with running the car, and your employer may even cover tyres, registration and maintenance.
Furthermore, you can deduct the cost of charging at a commercial station when driving a long distance. It could be an invaluable expense to consider if you drive frequently.
Are you curious how novated leasing can save you money on your EV purchase? Get in touch with us today. We can assist in finding a vehicle from various manufacturers and finding the perfect lease deal to fit your requirements.
Save on Tax
Novated lease electric vehicle can help to reduce your tax burden and provide several advantages, such as FBT exemption and the capacity to claim tax rebates.
Novated leasing allows you to pay for your car using pre-tax earnings rather than after-tax earnings, saving both tax and GST. Furthermore, it covers all running costs associated with running the vehicle, such as fuel, insurance, registration and servicing.
One great benefit of leasing a vehicle is reclaiming your VAT on the purchase. This amount could be significantly less than what you would have to pay in tax over the life of the lease, thus decreasing monthly payments and making the car more budget-friendly.
Tax incentives are available for all eligible models and can save you up to $7,500 during your first year of ownership. It’s important to check if your leasing company passes on this benefit; otherwise, it could amount to savings of less than $7,500.
Contrary to other forms of financing, a novated lease does not require a down payment and does not incur any interest charges. It can mean you save an impressive amount throughout the lease period, making it an attractive option for many people.
Recent studies have revealed that more than half of Australians are considering switching to electric vehicles through novated lease agreements to save on costs. It can be especially attractive for younger drivers and those striving to make a long-term environmental impact.
The novated lease exemption from FBT has been implemented to incentivise more people to opt for eco-friendly vehicles and thus propel the industry forward, reduce emissions, and promote greener modes of transport.
Save on Maintenance
Electric vehicles (EVs) have fewer moving parts than traditional cars, meaning they don’t break down as often or require as much service. Nonetheless, they still need some upkeep like brakes (pads and discs), tyres, suspension and wheel alignment.
If you’re leasing an electric vehicle (EV), a battery inspection is mandatory to guarantee its safety for driving. You may need to replace the battery if it becomes too old and no longer holds a sufficient charge; this should be covered under your lease agreement.
Saving on electric car maintenance is easy when you lease through a novated lease. In this type of deal, all costs associated with fuel, servicing and insurance are included in one monthly payment – making budgeting for your new EV much simpler.