If you’re looking for an electric vehicle but can’t afford to buy it, you might want to consider a Tesla novated lease. It’s a great financial option that combines the benefits of an EV with tax savings and no FBT obligations.
A Tesla novated lease allows you to use pre-tax salary to pay for your car’s repayments and run costs, reducing your taxable income. And as part of the government’s EV discount, a novated lease could save you up to 45% on your electric car’s finance and running costs.
Benefits
If you’re a fan of Tesla’s eco credentials, sleek styling, and cutting-edge tech, you may want to consider leasing one. The company offers several models — including the Model X, its largest EV to date — for lease.
Another benefit of leasing is that it allows you to swap out the vehicle every few years. While this isn’t practical for everyone, it could save you a significant amount of money over the life of the lease.
The only downside to leasing is that you can’t upgrade your Tesla model during the lease term, which may be a drawback for those who plan to keep their vehicle long-term. However, getting the latest EV technology can be worth it if you’re a dedicated driver.
Tax savings
A novated lease allows you to finance your Tesla on pre-tax salary, giving you the potential for significant tax savings. To get started, you’ll need to select the model you want from our range of Tesla vehicles and then complete the leasing application. You’ll be asked to confirm your preferred amount due at signing, monthly payment, preferred lease term and annual mileage. Once you’ve submitted your application, a Tesla advisor will contact you to arrange delivery.
If you’re on a full-time salary, a novated lease may be an excellent option for you to consider. In this way, your employer and financier can work together to provide you with a new Tesla that you can pay for with a pre-tax salary.
The change applies to EVs that cost less than $84,916 and is expected to significantly reduce the overall costs of owning an EV. As a result, demand for novated leases will increase as companies seek to capture this FBT benefit and ensure that they’re attracting employees with this option.
Another key benefit of a novated lease is that the car can be used for business and personal use. You can claim your vehicle’s running and maintenance costs under the PAYG system as a deductible expense for your taxable income. It will save you significant money on your monthly tax bill, up to $350 on an average income.
As part of your Tesla novated lease agreement, you’ll also be able to claim the up-front GST cost of the vehicle. It will help you save additional funds to use towards your repayments or other charges. Moreover, you’ll enjoy a tax discount on the car’s resale value if you sell it after the lease ends.
No FBT obligations
The government’s current FBT exemption for EVs is a game changer for electric car buyers in Australia. It is intended to encourage greater uptake of electric vehicles, particularly among fleets and company-car drivers, by reducing the associated tax bill.
A novated lease allows you to save thousands of dollars on the cost of an EV without paying any FBT obligations or GST, making it a fantastic opportunity to decarbonise your transport. It is a flexible financial arrangement that enables your employer to take your vehicle payments and running costs (such as charging, tyres, insurance and registration) and deduct it from your salary before tax, hassle-free, with no log book required.
You can also benefit from the new Electric Car Discount, which removes the FBT component of your novated lease contribution, saving even more on vehicle costs. It can make a massive difference to your bottom line, enabling you to afford the newest generation of green cars.
When you lease a Tesla under a novated agreement, your employer can deduct the entire lease payment and associated costs from your pay before tax, helping to reduce your taxable income significantly. Of course, the tax benefits associated with a novated lease will vary depending on your salary level and the type of vehicle you choose. Still, the savings you could enjoy are significant and pretty impressive.
Flexible payment options
If you want to drive a Tesla but don’t have the cash, leasing is the way to go. It’s a tried-and-true method that offers lower monthly payments than financing and lets you drive the vehicle for three years.
But is a lease right for you? You may have heard that leasing can be less expensive than buying a Tesla, but you must be sure it makes sense.
Before deciding to lease, take a close look at your budget and your driving habits. Also, consider whether you must travel long distances in your new car.
When ready to lease, head to the Tesla website and select “lease” as your payment option. From here, you’ll be taken to a screen that lets you customise your chosen Tesla model.
You can even choose from two packages for Model Y, Long Range and Performance. The former offers more range on a full charge, while the latter is quicker with a few extra ponies in its stable.
Choosing the best option isn’t always easy, but with some research and comparison, you can make an informed decision that will save you money in the long run. And if you’re still on the fence, there’s a finance calculator on the Tesla website to help you decide if financing is better for you.