Novated leasing an Electric or Plug-in hybrid vehicle: Answering your questions
With many state governments offering tax cuts and incentives to drive the uptake of electric vehicle purchases, they have become more popular over the recent years. beCarWise has recognised this boom and has put together the most commonly asked EV questions and answers to help buyers on the fence.
Is a novated lease for an electric/plug-in hybrid vehicle different to a petrol one?
There is one main difference for pure EVs it is, of course, fuel; you won’t have a fuel card for petrol, but you are able to claim the cost of charging up at a station.
If you have a charging station at home, you can claim the cost of electricity used as well; the charging station will need to be installed on its own meter to accurately claim the usage.
Any costs associated with having access or being connected to the electricity are not able to be claimed, and this also includes the installation costs of the charging station itself.
How do my running costs compare to any other lease?
Electric vehicles will still require registration, maintenance and tyres, and these are all claimable with a novated lease. EVs are more affordable to run and have lower repair costs compared to petrol or diesel vehicles, so your total running cost allowance will be lower (NSW Gov, 2021).
How will I charge my car on the go?
Charging stations have increased over recent years and there are plenty of online resources that map out where each one is, such as https://electricvehiclecouncil.com.au/
Some electric cars even indicate where a charging station is and where you can stop to charge en route to your destination – which could take you on the scenic route if you’re on an adventure.
What is the difference between an EV and PHEV?
An electric vehicle (EV) does not have a petrol engine at all and runs entirely with an electric motor storing its power via a large capacity battery. A Plug-in hybrid electric vehicle (PHEV) is powered by both a petrol engine and electric motor together, generally has a larger battery than a traditional hybrid and can be plugged in to recharge.
What vehicles can I choose from?
There is a range of vehicles available from various manufacturers to choose from, these include:
- Tesla Model 3
- Audi e-tron
- MG ZS EV
- Mitsubishi Outlander PHEV
- Toyota Rav4 PHEV
- Hyundai IONIQ Elite PHEV
- Kia Niro S PHEV
- Volvo XC40 Recharge
- Mercedes-Benz c 300e PHEVs
- BMW X5 PHEVs
Plus many more!
Confidence and convenience
beCarWise specialise in novated leasing. We have the knowledge and experience you need to help make an informed decision about your next new or used car. As electric vehicles begin to grow in popularity and become the next step into the future, it is good to know that you can still have the convenience of having all your budgeting and running costs taken care of by beCarWise. Give us a call on 1300 734 500 today.
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