As EVs continue to gain popularity, more Australians are exploring options for owning or leasing an EV. However, with this growing interest comes a range of misconceptions about electric vehicles and novated leasing. To help you make informed decisions, we’re busting the top 10 myths about EVs and novated leasing in Australia.
10 Myths About Electric Vehicles and Novated Leasing in Australia
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1. Myth: Electric Vehicles Are Too Expensive to Lease
Reality: While EVs can have a higher upfront cost than petrol or diesel vehicles, leasing an electric vehicle through a novated lease can actually make it more affordable. The big thing that sets EV novated leasing apart is the Federal Government’s FBT exemption.
The tax savings are so large with EV novated leasing that it is a no brainer! With novated leasing, payments are made from your pre-tax salary, reducing your taxable income and providing significant tax savings.
Additionally, when you factor in lower running costs (no fuel and reduced maintenance), an EV can be just as affordable—if not more—than a traditional car.
2. Myth: There’s Not Enough Charging Infrastructure in Australia
Reality: This depends on where in Australia you live and your transportation patterns. Australia’s charging infrastructure is expanding rapidly in metro and regional locations.
You’ll be surprised to find fast chargers dotted around the country, sometimes in unlikely places. Additionally, many EV owners charge their vehicles at home, reducing reliance on public charging stations.
This is especially advantageous if you have solar on your roof, your running costs become even lower! The myth that there aren’t enough chargers is increasingly outdated as Australia continues to invest in its EV infrastructure.
3. Myth: Novated Leasing Only Works for Petrol or Diesel Cars
Reality: You can absolutely lease an electric vehicle through novated leasing. In fact, many Australians are switching to EVs through this flexible, tax-effective financing option.
Whether you’re leasing a Tesla Model 3 or a Hyundai Ioniq 5, novated leasing allows you to drive an electric car while benefiting from tax savings, FBT savings and bundled running costs.
4. Myth: Electric Vehicles Have Limited Range and Can’t Handle Long Trips
Reality: Most people don’t drive more than 30-40 kms a day, so you’ll be surprised at how sparingly you’ll need to charge your vehicle. The range of modern electric vehicles has improved dramatically in recent years.
Many EVs now offer ranges of over 400 km on a single charge, making them suitable for long-distance travel. For example, the Tesla Model 3 has a range of up to 602 km (depending on the variant), and the Hyundai Ioniq 5 offers up to 451 km. Additionally, fast chargers along major highways make long trips easier than ever.
5. Myth: Leasing an EV Through Novated Leasing Is Complicated
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Reality: Novated leasing for electric vehicles is no more complicated than leasing a traditional car. In fact, it can be even more straightforward since novated leasing bundles all your running costs—such as registration, insurance, maintenance, and charging—into one payment.
With leasing providers like CarBon Novated Leasing, the process is streamlined, allowing you to save on taxes and drive your dream electric vehicle without hassle.
6. Myth: EVs Are More Expensive to Maintain
Reality: One of the key benefits of electric vehicles is that they have fewer moving parts than internal combustion engine (ICE) vehicles. This means there are fewer components that can wear out or require regular servicing.
EVs don’t need oil changes, and brake wear is reduced thanks to regenerative braking systems. Over time, electric vehicles tend to have lower maintenance costs than petrol or diesel cars.
7. Myth: EV Batteries Don’t Last Long
Reality: The technology behind electric vehicle batteries has advanced significantly, with most EV batteries designed to last for many years. In fact, most manufacturers offer warranties of around 8 years or 160,000 km for their batteries.
Additionally, EV batteries tend to degrade slowly, and the vast majority of drivers experience only a small reduction in battery capacity over time.
8. Myth: Novated Leasing Isn’t Available for Used Electric Vehicles
Reality: Many people believe novated leasing is only for new cars, but that’s not true! You can lease both new and used electric vehicles through novated leasing. Leasing a used EV can be an excellent way to get behind the wheel of an electric vehicle at a lower cost while still enjoying tax benefits and reduced running expenses.
Speak to your leasing provider as some will have different parameters around used cars.
9. Myth: Electric Vehicles Aren’t Good for the Environment Because of the Manufacturing Process
Reality: While it’s true that manufacturing EVs, especially the batteries, requires more energy than traditional cars, the environmental benefits of driving an electric vehicle far outweigh the initial impact.
Over their lifetime, EVs produce significantly fewer emissions compared to petrol or diesel cars, particularly when charged using renewable energy sources like solar or wind. Leasing an EV through novated leasing allows you to contribute to a cleaner, greener future while enjoying a cost-effective driving solution.
10. Myth: EVs Depreciate Too Quickly
Reality: While depreciation is a factor for all cars, electric vehicles are increasingly holding their value as the demand for them grows it just varies between makes and models.
Speak to your consultant if you are worried about residual values at the end of your lease term!
Conclusion: Novated Leasing and EVs Are More Convenient Than You Think
There are plenty of myths surrounding electric vehicles and novated leasing, but as EV technology continues to advance and Australia’s charging infrastructure expands, more Australians are realising the benefits of driving electric.
Whether you’re interested in reducing your carbon footprint, enjoying lower running costs, or simply driving a state-of-the-art vehicle, leasing an electric vehicle through novated leasing can be an ideal solution.
By dispelling these myths, we hope you feel more confident about exploring the world of electric vehicles and novated leasing. Now is the perfect time to make the switch!
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