“Is There Novated Electric Car Lease In Australia?” The concept of acquiring an electric car in Australia keeps gaining momentum.
One main factor that has sparked this increased taste for electric cars in Australia is the Australian Government’s introduction of the novated lease Fringe Benefits Tax(FBT) privilege for electric cars.
This move aims to make acquiring electric cars in Australia easy, increasing the number of electric car users among Australians.
Electric cars have the benefit of not causing atmospheric pollution.
If you dream of buying an electric car for personal use, this is the right time. With novated electric car lease, you won’t feel the cost unlike if you were to pay in full upfront.
This article examines if there is a novated electric car lease in Australia, the meaning of a novated electric car lease in Australia, the person who qualifies for a novated electric car lease in Australia, how you can apply for a novated electric car lease in Australia and lastly if it is cheap to apply for a novated electric car lease in Australia.
Is There A Novated Electric Car Lease In Australia?
Yes, there is a Novated electric car lease in Australia.
This was widely confirmed when the Australian Government introduced the Novated lease Fringe Benefits Tax(FBT) privilege for electric cars on July 1st, 2022.
Most business owners in Australia offer Novated electric car leases to their workers by helping them acquire electric cars and pay monthly from their pre-tax salary.
Some financial institutions in Australia are engaged in Novated electric car leasing. Examples of financial institutions that are into novated car leasing are Fingo Finance, ORIX Australia Corporation Ltd, and Inside Edge Novated Leasing.
know for a fact that Novated electric car leasing exists in Australia. Enquire about novated leases from your employer and find out about the financial institutions that offer Novated electric car leasing in Australia.
Start with Fingo Finance, ORIX Australia Corporation Ltd, and Inside Edge Novated Leasing.
What Is Novated Electric Car Lease In Australia?
A novated electric car lease in Australia is where you can purchase an electric car and pay in monthly installments from your salary.
It is similar to a car loan but with a novated car lease you agree with your employer that an amount be taken from your salary as payment for the electric car purchased. A lease agreement is also made with a financier.
The financier leases the electric car to you which you pay back in monthly installments from your pre-tax salary.
They also take care of all the electric car documentation, some of which includes insurance.
So there has to be an agreement between you, your employer, and a financier before a novated car lease would function.
Usually, the lease agreement duration is between 2 to 5 years. When the lease period ends, you have the alternative of buying the electric car or taking the electric car back. That decision will depend on you.
The lease package includes the price of the electric car and all maintenance costs you incur from using your electric car.
You contribute to safeguarding the environment from air pollution and enjoy a novated car lease where you purchase an electric car and pay in installments.
Who Qualifies For Novated Electric Car Lease?
A novated electric car lease is only available to people employed by others other than themselves. You do not qualify for a novated car lease if you are a non-staff.
If you wish to acquire a completely electric car or cars with both charging and fuel usage capabilities, then you qualify for a novated electric car lease.
You are eligible for a novated car lease if the Fringe Benefits Tax immunity applies to the electric car you hope to purchase.
People who bought their electric cars before the Fringe Benefits Tax was introduced on July 1st, 2022 do not qualify for a Novated car lease.
To qualify for a novated electric car lease, the car must not emit vapor at all or the vapor it emits should be very low.
With a Novated car lease, you don’t need to make huge payments before the electric car is handed over to you.
How Can One Apply For Novated Electric Car Lease In Australia?
Consider the process below to apply for a novated electric car lease in Australia.
- First and foremost you should have a particular electric car in mind that you wish to go in for and make a decision. In deciding, take note of the functions, cost, and durability.
- Get in touch with the leasing company and provide all the necessary documentation they request for you to sign up with them. The information required is mostly about your stability in economic terms. Don’t hesitate to seek clarification from the leasing company on anything you don’t understand.
- After providing all the necessary information to sign up with the leasing company, wait patiently for them to review and get back to you. They will notify you if you qualify to enjoy a novated car lease.
- If you qualify, you will be given an agreement form that details the terms and conditions for you to fill out and submit. Make sure you read thoroughly and understand what you are signing up for.
- Then the electric car you requested will be handed over to you for personal use. Don’t forget that the newly electric car you have acquired will be paid back in monthly installments from your before-tax salary.
Is It Cheap To Apply For Novated Electric Car Lease?
Yes, it is cheap to apply for a novated electric car lease in Australia. The process involved in applying for a novated car lease does not require any monetary expenditures.
What you have to do is arrange with your employer and a third-party institution that will do the pre-financing of the electric car.
Another important factor is that you have to be in a financially sound position. The actual payment starts after you have taken into custody the electric car you requested.
