The electric vehicle (EV) revolution is reshaping the automotive landscape in Australia, with leading brands like Tesla, BYD, and Polestar at the forefront.
As more Australians are drawn to the allure of electric vehicles, understanding the financial aspects, such as electric green car loans, novated leases, and tax savings, becomes crucial. This blog delves into how these elements intertwine to make owning an EV like Tesla, BYD, or Polestar a financially savvy and eco-friendly decision.
Pioneers of the electric vehicle revolution
Tesla
Synonymous with innovation, Tesla has been a trailblazer in popularizing EVs. Owning a Tesla in Australia is more than a status symbol; it's a commitment to cutting-edge technology and sustainability that any and all electric vehicle owners will recognise.
BYD
As a rising star in the EV market, BYD offers affordable and reliable electric vehicles. This Chinese automaker is gaining traction in Australia, offering an alternative for those seeking budget-friendly EV options.
Polestar
With a focus on design and performance, Polestar is carving out a niche in the luxury EV segment. Their vehicles cater to those who seek elegance without compromising on environmental values.
Financial incentives: novated lease and electric car loans
Understanding the financial aspects of owning an EV is crucial. Here's where options like novated leases and electric car loans come into play. If you are looking to reduce taxes then the best path may be a novated lease in Australia.
Find the right novated lease solution for you with our novated lease calculator!
Novated lease for EVs
A novated lease is an effective way to finance your Tesla, BYD, or Polestar in Australia. This arrangement allows you to lease an EV using 100% of your pre-tax salary for eligible vehicles, leading to significant tax savings. It's a convenient, cost-effective method to embrace electric driving. It’s the ATO approved way to reduce your taxable income.
A novated lease is a salary sacrifice option that allows you to bundle the finance and running costs of your car into your salary. The best selling private car in Australia in 2023 was the Tesla Model Y as buyers rushed to take advantage of the tax benefits on offer. This option provides one of the best tax savings in Australia - and there are also some government incentives certain employees may be able to take advantage of. The electric vehicle discount for elegible electric vehicles means your novated lease could be tax free!
Electric car loans
For those not opting for a novated lease, electric car loans provide an alternative path. Various financial institutions in Australia offer specialized loans for EV purchases, including Tesla, BYD, and Polestar models.
These loans often come with lower interest rates, acknowledging the eco-friendly nature of the investment. The electric vehicle loan is paid after tax and so there is typically no tax deduction or tax incentive to do this.
Tax savings and electric car finance
One of the most appealing aspects of electric car finance through a novated lease is the potential for tax savings. Financing an EV like a Tesla, BYD, or Polestar can lead to reductions in taxable income, GST savings, and other financial benefits.
This makes both hybrid and electric vehicles not only a choice for sustainability but also a wise economic decision. The savings extend to PHEV which can also be leased pre-tax.
Find the right electric car finance option for you with easi
The shift towards EVs such as Tesla, BYD, and Polestar is a defining movement in Australia's automotive industry. With financial mechanisms like novated leases and electric car loans, coupled with significant tax savings, owning an EV has never been more accessible.
As we move towards a greener future, the fusion of technology, electric car finance, and environmental consciousness paves the way for a brighter, cleaner tomorrow on Australian roads.
Whether you’re interested in electric or hybrid vehicles or something more standard, Easi are the place to go to. Their team has decades of experiences with novated leasing, and have a range of electric cars available under a novated lease
Get started on your electric or hybrid car novated leasing journey by contacting us today!
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