Electric Vehicle Novated Leasing
Ignite your drive towards a greener future with Metro’s novated leasing solutions for electric vehicles.
Why choose Metro?
With our unparalleled expertise and tailored finance solutions, Metro is your trusted partner in propelling businesses and their employees towards a greener horizon.
We understand that each business is unique, and we strive to provide tailored finance solutions that align with your business and employees’ goals and objectives.
Benefits of EVs
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Tax
savings
By choosing a novated lease for an electric car, you could open the gateway to a multitude of tax-saving opportunities.
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More convenient costing
Metro’s electric vehicle novated leasing simplifies your financial journey, providing convenience and simplicity. Enjoy the ease of a fixed monthly payment that encompasses all vehicle-related expenses, including registration, insurance and maintenance.
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Reduce greenhouse gas emissions
Electric vehicles produce zero tailpipe emissions, which helps to improve air quality and reduce greenhouse gas emissions, making them a more eco-friendly option compared to conventional internal combustion engine vehicles.
How Novated Leasing for Electric Vehicles Work
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Vehicle Selection
To begin the process of getting a novated lease for an electric car, you’ll need to choose the electric vehicle model that best suits your preferences. This important choice includes taking into account factors like how far the vehicle can travel on a single charge, the availability of charging stations, and your unique requirements.
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Novation Agreement
After selecting your desired electric vehicle, you need to check if your employer accepts novated leasing. Your employer's salary packager will then establish a novation agreement that defines the terms and conditions of your lease. This agreement will cover important details such as the duration of the lease, the maximum number of kilometres allowed, and any additional services or benefits provided.
If your employer isn’t already partnered with a Salary Packager, we can put you in touch with a Metro accredited salary packager here.
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EV Salary Packaging
To begin the process of getting a novated lease for an electric car, you’ll need to choose the electric vehicle model that best suits your preferences. This important choice includes taking into account factors like how far the vehicle can travel on a single charge, the availability of charging stations, and your unique requirements.
What we can finance
Metro finances a wide range of cutting-edge electric vehicles from various brands.
Whether you're interested in a compact electric car for city driving, a spacious electric SUV or a smart electric sports car, our electric car finance options offer something for everyone. If you’d like to find out whether we can finance your dream EV, speak to your Metro Introducer.
Knowledge Hub
Here at Metro, we know that buying an electric vehicle can feel a bit overwhelming. We have gathered a range of resources to help you make the best decision for your needs.
EV Charging Stations Map
Find the closest electric vehicle charging station near you. Use this live map created by the Electric Vehicle Council to locate all charging stations across Australia
Electric Vehicles Available in Australia
Navigate the Future: Australia's Comprehensive Electric Vehicle Guide.
Worried where you can charge your electric car?
The Electric Vehicle Council has put together a live map that shows all charging stations across Australia.
Testimonials
Read our success stories and discover how Metro’s commercial vehicle finance solutions can help your business embrace a greener future.
FAQs
What government incentives are there for electric car purchases?
Click on your state or territory below to find the latest updates on government incentives.
Should I be worried about range with my EV?
New electric vehicles priced under $50,000 generally offer a range capacity of around 480 kilometres, while more expensive models can go even further. It’s important to note that the average Australian drives less than 50 kilometres per day, making range anxiety less likely to be a problem for most daily commutes. Additionally, the majority of EV charging takes place at home, where overnight charging can easily replenish the vehicle’s battery.
For most households, daily charging may not be necessary, and in some cases, a single
charge per week would suffice. It’s worth mentioning that ongoing advancements in battery technology by manufacturers are continually improving the driving ranges of EVs, offering even greater distances on a single charge.
Governments have also started recognising the importance of supporting EV adoption and have started providing funding for chargers in regional locations. This initiative ensures that drivers can confidently travel longer distances across Australia, alleviating any concerns about finding charging infrastructure during road trips.
How much will it cost me to charge my electric vehicle?
The cost of charging an electric vehicle (EV) can vary depending on your location, electricity rates, and the specific model of your EV. In Australia, the average price for electricity is around $0.30 per kilowatt-hour (kWh).
To estimate the charging cost, we can use the average energy consumption of an EV. Australian Electric Vehicle Association president Chris Jones estimates most electric sedans and hatchbacks should average between 10kWh/100km and 15kWh/100km to be considered efficient. In addition, The Electric Vehicle Database states that an average consumption for an EV is 20kWh/100km. Multiplying this by the electricity rate, it would cost approximately $6 in electricity charges to travel 100 kilometres in an electric vehicle.
In comparison, the average petrol car in Australia uses 11.1 litres of fuel to travel 100 kilometres, based on data from the Australian Bureau of Statistics. Considering a petrol price of $1.50 per litre, the cost of travelling 100 kilometres in a petrol car would be $16.65, which is substantially more expensive.
How do I choose an EV charging station?
Some key considerations to help you choose the right EV charging station include:
- Charging Speed: EV charging stations come in different power levels, typically categorised as Level 1, Level 2, and DC Fast Charging (Level 3). Level 1 chargers use a standard household outlet and provide the slowest charging speed, suitable for overnight charging. Level 2 chargers offer faster charging and require a dedicated circuit or a higher-powered outlet. DC Fast Charging provides the fastest charging but is typically found in public locations. Consider your charging requirements and prioritise the charging speed that aligns with your needs.
- Connector Compatibility: Electric vehicles use different connector types, such as Type 1, Type 2, CHAdeMO, and CCS. Ensure that the charging station you choose has the appropriate connector type that is compatible with your EV. Most stations offer multiple connector options to accommodate various vehicle models.
- Location and Accessibility: Determine where you plan to install or use the charging station. If it’s for home use, consider the available space, proximity to your parking spot, and the accessibility of electrical infrastructure.
How does the FBT exemption work?
The Fringe Benefits Tax (FBT) exemption is a tax provision that applies to certain electric vehicles (EVs) in Australia. FBT is a tax levied on non-cash benefits provided to employees by their employers.
In Australia, the FBT exemption for electric vehicles aims to encourage the adoption of environmentally friendly transportation options. Under this exemption, eligible employers are not required to pay FBT on electric vehicles provided to employees for their private use.
To qualify for the FBT exemption, the vehicle must be classified as an electric vehicle and meet specific emissions criteria, as outlined by the tax regulations. Generally, battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs) that meet certain emission standards are eligible for the exemption.
What types of electric vehicles can be financed through a novated lease?
An EV novated lease provides a flexible financing option for a wide range of electric vehicles, including SUVs, hatchbacks or commercial vehicles. If you have a specific brand or manufacturer in mind, please speak to your employer’s salary packager to find out whether Metro can finance it.
How long does the application process take?
While the exact timeframe can vary depending on various factors, including the completeness of the application and the complexity of the financing request, we strive to provide a decision as quickly as possible.
What happens at the end of the novated lease term?
At the end of an electric car novated lease term, you have a few options depending on the terms of your specific agreement:
- Purchase the Vehicle: In all cases, you have the option to purchase the vehicle at the end of the lease term. The purchase price is typically the residual value specified in the lease agreement.
- Refinance or Extend the Lease: Depending on the terms and conditions of your EV novated lease agreement, you may have the option to renew or extend the lease for a further period. This can be beneficial if you wish to continue using the same vehicle or explore other financing options.
Can employees purchase the electric vehicle at the end of the lease term?
Yes, employees typically have the option to purchase the electric vehicle at the end of the novated lease term. Depending on the terms of the electric car novated lease agreement, a residual value (also known as a balloon payment) may be specified. This residual value represents the predetermined purchase price of the vehicle at the end of the lease term.
Are there any mileage restrictions for the electric vehicle during the lease term?
No, there are no mileage restrictions during the EV novated lease term.
Can employees include additional costs such as insurance and maintenance in the novated lease?
Yes, employees can often include additional costs such as insurance and maintenance in an electric car novated lease. An EV novated lease is a comprehensive vehicle finance solution that typically covers various expenses associated with vehicle ownership.
What happens if the employee changes jobs during the novated lease term?
If an employee changes jobs during a novated lease term, the novation arrangement needs to be re-novated to accommodate the change in employment. Here’s what typically happens in such cases:
- Transfer of the Novated Lease: The existing novated lease can be transferred to the new employer if they are willing to participate in the novation agreement. This would involve updating the novated lease contract to reflect the new employer’s details and ensuring their cooperation in continuing the lease agreement.
- Negotiating a New Novation Agreement: If the new employer does not participate in novated leasing or the employee prefers not to transfer the lease, they may need to negotiate a new novation agreement with their new employer or explore alternative financing options.
- Refinance into a Lease: If transferring the novated lease to the new employer or negotiating a new novation agreement is not feasible, the employee may want to consider refinancing the novated lease into a standard vehicle lease. This involves converting the novated lease into a regular lease, where the employee takes on the responsibility of the lease payments using their post-tax income.
Can the employee modify the electric vehicle during the lease term?
No, the employee cannot modify the electric vehicle during the lease term.
If you’re ready to get your business moving, we’re here to help.
Our team can get you in touch with one of our trusted brokers or salary packager introducers.
