Fincar February 22, 2024 No Comments

The automotive industry is undergoing a significant shift towards sustainability, with electric vehicles (EVs) at the forefront of this revolution. As more people embrace eco-friendly transportation options, the decision to purchase an electric vehicle with a novated lease is gaining popularity. This article explores the various factors to consider when deciding whether to buy an electric vehicle through a novated lease.


The Rise of EVs

Electric vehicles have become increasingly popular due to their environmental benefits, lower operating costs, and advancements in technology that have improved their range and performance. With governments worldwide encouraging the transition to electric vehicles through incentives and subsidies, the market for EVs has experienced substantial growth.


Environmental Impact

One of the primary reasons people choose electric vehicles is their reduced environmental impact. EVs produce zero tailpipe emissions, contributing to cleaner air and a decrease in greenhouse gas emissions. With a novated lease, individuals have the opportunity to make a positive environmental impact while enjoying the financial benefits associated with electric vehicles.


Cost Savings

Electric vehicles generally have lower operating costs than their traditional counterparts. Charging an EV is often more cost-effective than filling up your petrol tank, and maintenance expenses are typically lower due to fewer moving parts. Novated leases further enhance these cost savings, allowing individuals to bundle various expenses such as fuel, insurance, and maintenance into a single pre-tax payment.

Electric Vehicles

Tax Benefits

Novated leases offer tax advantages, making them an attractive option for those considering the purchase of an electric vehicle. With a novated lease, a portion of the car’s running costs is paid using pre-tax income, resulting in potential tax savings for the leaseholder. Governments may also provide tax incentives for EV ownership, making the combination of a novated lease and an electric vehicle an even more financially appealing option.

One concern for prospective electric vehicle buyers is the perceived depreciation and rapid technological advancements in battery technology. However, novated leases often include a residual value component, which can mitigate concerns about potential depreciation. This allows individuals to enjoy the benefits of driving an EV without bearing the full financial impact of its depreciation.


Personal Circumstances

When deciding whether to opt for an EV with a novated lease, it’s essential to assess personal usage patterns and daily commuting distances. Electric vehicles are well-suited for urban environments with shorter commutes, as they often have sufficient range for daily use. Novated leases provide flexibility in choosing a vehicle that aligns with individual commuting needs, allowing for a personalized and cost-effective transportation solution.


Choosing an electric vehicle with a novated lease is a decision that involves careful consideration of environmental impact, cost savings, tax benefits, residual value, and individual usage patterns. As the auto industry continues to evolve, EVs are becoming a more viable and attractive option for a broad range of consumers. When combined with the financial advantages offered by novated leases, the prospect of owning an EV becomes even more compelling. Ultimately, the decision to embrace this innovative and sustainable transportation solution rests on a thorough evaluation of individual preferences, financial considerations, and environmental consciousness.


The Fincar team is here to help you with all your financing needs. Contact us today to help arrange your next car or equipment loan.