Novated Lease Australia says its research shows the purchase price of battery electric vehicles is stopping 28% of potential new car buyers from making the switch from ICE vehicles but this barrier can be easily overcome.
Furthermore the financier says many potential EV buyers who are interested in a novated lease assume that because their employer has never offered it to them, it’s not available.
“Novated leases allow employees to finance a vehicle and make repayments from their pre-tax salary, Novated Lease Australia chief executive Bevan Guest says.
“Whether buyers work for a small to medium-sized enterprise, a large corporation, or a not-for-profit, setting up a novated lease is easy with very minimal administration and employers can facilitate this benefit for their team.
“Even better, novating leasing makes driving an EV more economical than many petrol or diesel vehicles.
“Thanks to a Federal Government incentive, purchasing an EV through a novated lease is more affordable than other loan options and even buying the vehicle with cash,” he says.
Guest says there are a couple of reasons why novated leases are so much more affordable than other financing options.
“First of all, buyers won’t be required to pay GST on the purchase price of the EV when using a novated lease. On its own, this benefit puts thousands of dollars back in their pocket,” Guest says.
“Novated lease repayments also come out of pre-tax income, so it can also substantially reduce the amount of income before tax paid each year. Add to this the cost-saving benefits of bundling essential vehicle expenses such as registration, insurance, maintenance, tyres, and charging fees into the pre-tax repayment, and the savings speak for themselves.
“A strong EV supply throughout Australia and great pricing options make it possible for buyers to secure a pre-Christmas delivery. This means buyers can start 2024 enjoying the many financial and environmental benefits of driving a fully electric vehicle,” he says.
With more than two decades of experience in the automotive and financial services sector, Guest says he has led Novated Lease Australia to become a market disruptor by providing innovative novated leasing and related services to people all over the country.
He says his previous roles as managing director and chief commercial officer at Eclipx Group showcased his ability to boost revenue, profitability, and market share while also prioritising customer experience and satisfaction.
