Electric Cars are the future and new tax changes to Novated Leasing now makes them more affordable than petrol cars.

Electric Vehicle Novated Leasing starts with the employer & our service is completely free to all employers.

At Vehicle Solutions, we love and support the world transitioning to EVs. For us, this started with our employees and the installation of free chargers here at our office. This small incentive quickly saw the uptake of three new EVs with more to follow.

However, the Federal Government incentive that now makes all EVs under $89,332 tax-free on a Novated Lease has transformed the EV market in Australia. Watch the video below that demonstrates the power of this tax incentive. This video shows how a Tesla is now more affordable than a Hybrid Corolla.

Electric vehicles (EVs) are an excellent choice for reducing carbon emissions and promoting sustainable transportation. Transitioning to electric vehicles is crucial in combating climate change and improving air quality.

Living the electric vehicle ownership journey involves several key aspects:

  1. Vehicle Selection: Choosing the right electric vehicle that suits your needs is essential. Consider range, charging infrastructure, cost, and available incentives. Research different models and compare their specifications and features.
  2. Charging Infrastructure: Access to convenient and reliable charging infrastructure is vital for EV owners. Check for public charging stations in your area and ensure that you have access to charging points at your home or workplace. Installing a home charging station can provide added convenience and faster charging.
  3. Charging Etiquette: Being mindful of charging etiquette is essential, especially when using public charging stations. Try to be considerate by not leaving your vehicle parked at a charging station after it’s fully charged so that others can use the available spot.
  4. Range and Trip Planning: Electric vehicles have a range limitation, so you must plan your trips accordingly. Take advantage of range calculators and navigation systems that help identify charging stations along your route. This way, you can plan for charging stops to ensure a smooth journey.
  5. Maintenance and Service: Electric vehicles have fewer moving parts compared to traditional internal combustion engine vehicles, which generally results in lower maintenance costs. However, regular maintenance, such as tire rotations, brake inspections, and software updates, is still necessary. Familiarise yourself with the specific maintenance requirements of your EV model.
  6. Community Engagement: Engaging with the electric vehicle community can provide valuable insights, tips, and support. Join local EV owner groups, attend events, and participate in online forums to share experiences, learn from us and our partners, to stay up to date with the latest EV advancements.
  7. Advocacy and Education: As an EV owner, you can contribute to the broader adoption of electric vehicles by advocating for clean transportation policies and educating others about the benefits of EVs. Encourage friends, family, and colleagues to consider electric vehicles and share your positive experiences.

By actively embracing and promoting the electric vehicle ownership journey, you play a vital role in driving the transition to sustainable transportation and creating a greener future.

Novated Leasing is entirely free to establish and maintain for employers. Vehicle Solutions will manage the entire rollout and vehicle management. If you are interested in setting up this reward program at your workplace please call us on 1300 990 880 or complete the contact form by clicking the button below.

A Tesla 3 is now more affordable than a Corolla

Watch the video below to see how a Tesla is now more affordable than a Corolla. Then try our calculator to see how affordable your dream EV can be.

EV Availability and how we can help.

(EVs) are becoming increasingly popular in Australia, and there are a already many models available in the market, with many more being released over the coming months and years. However, specific availability may vary depending on the current date and any recent developments in the EV industry. It is recommended to check with local dealerships or visit their websites for the most up-to-date information on EV availability in Australia.

But the most important decision to make is which EV suits your needs, budget and lifestyle.

We can assist by showing you exactly what EV’s and PHEV’s are available under the $89,332 FBT FREE limit. Simply scroll down to the calculator below and you can scroll through all makes and models available in the Australian market now.

If you are interested in getting a more detailed quote and to talk to one of our EV experts click on the “Get A Details Quote” on the calculator and a member of our team will be in touch ASAP.

Our team can also assist in securing fleet discounts and faster availability if available.

Information about our EV Novated Lease Calculator

New government legislation aims to use Novated Leasing to make EV’s as affordable as possible. However the main question still needs to be answered, “What is this car going to cost me out of my take home pay?”. A good Novated Lease calculator will provide this information up front. Vehicle Solutions Novated Lease calculator tells you in seconds the cost to your take home pay for any vehicle value you enter up to the FBT exempt amount of $89,332.

But what does all this mean?

When looking at any Novated Lease calculator it is important to understand what is included and importantly what is not included. On a Novated Lease calculator the provider can change the way fuel/charge, tyres and scheduled services are calculated which will reduce the amount allocated to the running costs to make their quotes look cheaper, but in the end you could be paying a lot more. It is very important to understand what is in each of the running cost budgets and how they are calculated.

The Calculations

Charge Allocation (Was the old fashioned fuel)

In our Novated Lease calculator we have included an allocation of $750 per year for charging your vehicle. This can be changed prior to starting the lease or at any point during the lease term depending on usage.

Tyres

In a Novated Lease calculator a tyre budget is a little harder to estimate simple because tyre prices can vary so much depending on the type of tyre the driver wants, for example a lower profile tyre maybe more expensive, but important to the vehicle driver. In our Novated Lease calculator we research an average cost for each of the vehicle categories we use. We simple apply this cost to an average tyre change time period and the budget is set.

(Average cost of a tyre X 4) = Cost of a set of tyres.

Your annual kms travelled X the lease term in years = Total KMs

Total KMs/35,000kms (average tyre change period) = Sets of tyres required.

Sets of tyres required X Cost of the set / years of lease = Total tyre budget per year.

Example – Mary drives 15,000kms per year and is about to start a 5 year lease. The cost of a set of her tyres is $850.

15,000 X 5 = 75,000kms /35000 = 2.14 sets of tyres X $850 per set = $1,819/5 years = $363.80 per year.

Maintenance

Most cars need a service every 10,000 to 15,000km and the cost of this service depends on the type of vehicle you choose. However EV’s in general require less serving so we have set an allocation of $350 per year.

Registration and Insurance

For registration and insurance renewals we use an estimate again depending on the type of vehicle chosen.

Finance

The finance is on a standard novated lease calculation with a few small variations.

  1. The lease is two months in arrears. This means that the payments for the first two months are $0.00. These payments are spread over the balance of the lease term. For example if you are wanting to take a 5 year (60 month) lease then there will be 60 payments, however the 1st and 2nd month will be $0.00 and then 58 payments of $400 for example. This structure allows the Salary Packaging company such as Vehicle Solutions Australia to establish the service including the payroll deductions and collect several deductions prior to the first real payment is due.
  2. The first years Comprehensive Car Insurance can be financed if required. This means that you never have to come up with the cash for your insurance. When the insurance fall due again in 12 months simple send in the renewal and the Salary Packaging provider can pay this out of the funds in your Novated Lease account.

Residual Value

There is always a lot of talk about the balloon payment that falls due at the end of your lease. This is call the residual value or the final value (for tax purposes). The ATO allow you to pay for your car through your employer. This arrangement saves you take and is very convenient to run. However for tax purposes only, because your employer is paying for the car from money deducted from your salary you can’t get any equity in this vehicle. That means it needs to be paid back to a realistic market value at the end of the lease.

GOOD NEWS! Because there is a residual value at the end, your repayments are cheaper during the lease term. Most people use these more affordable finance payments to get into a more expensive car.

The residual value is a ATO set percentage based on the lease term, but has a buffer of approximately 5% either side of required rates. Please read a more details article and view the ATO set percentages by clicking HERE.

Loan or Lease

For most people buying a car means they need some form of finance. One of the most common questions is wouldn’t I be better off putting the car on a normal car loan? To get a true comparison of the difference between a loan and a lease please read our article by clicking HERE.

Finance Approval Conditions

After you have finished used our Novated Lease Calculator and being happy that you can afford the deduction from your salary the next step is getting the finance or lease approved. In general getting a Novated lease approved is a little easier than normal finance. The reason for this is simply because the financier is getting the repayments directly from your employer before you even get taxed. This gives the financier more confidence that their loan is going to be repaid.

To get a pre-approval started click HERE. The pre-approved will provide you with an approval in principle on the vehicle you choose. This approval is not binding and we never put any pressure on you to use this approval. The approval will provide you with a better negotiating position in the vehicle purchase. People who are ready to buy and have the funds in place can request a cash price for immediate delivery.

We hope that you have found both our Novated Lease Calculator and information on each aspect of the calculator helpful.

However if you have any questions regarding the numbers or would like to discuss the process please feel free to call us during office hours on 1300 990 880 or click the button below to send us an enquire form.