Congratulations for going electric. Now, how do you fuel your EV dream financially? Read on to explore the different financing options to get you on your journey to low cost, low emission motoring. The different financing options covered in this article are:
What is a novated lease? A novated lease is a way to finance a car that combines salary packaging with car leasing. It involves three entities: you, your employer, and a novated lease provider. Here's a breakdown of how it works:
Potential benefits of a novated lease Utilising a novated lease means you will reduce your taxable income and could save significant amounts of money compared to other financing options. Historically, novated leasing triggered additional fringe benefit tax payments for employers for any portion of time that the vehicle was used for personal use. Many employers weren’t prepared to cover this additional tax and either passed it on to the employee or chose not to offer car leasing schemes. However, from 1 July 2022 fringe benefit tax was eliminated on EVs under the luxury tax threshold (currently $89,332). This change has rapidly increased the uptake of employers offering novated leases for EV, and the uptake of such leases by employees. EV financing options The above chart is based on a three-year term, with the lessee taking full ownership at the end of the lease, for a Tesla Model Y RWD. It includes registration, CTP and insurance costs but excludes other costs. For full-time employees, novated leasing is likely to be the cheapest option for acquiring an EV. Especially for those in higher tax brackets. Additional benefits may also be possible by salary sacrificing other costs associated with ownership such as electricity and maintenance. If you are self employed then it may be advantageous to purchase your EV through your business given no FBT is payable on it for personal use; you should discuss this further with your accountant. For most people, car financing to purchase an EV is likely to be the most expensive option. Downsides While there are many benefits to a novated lease there are also downsides to consider before you decide. Including:
Data and assumptions Notes:
(1) Based on three-year lease/ownership period for a Tesla Model Y. The vehicle is fully owned by the consumer at the end of this three-year period in all examples. (2) Novated lease costs based on the average of quotes provided by two leading novated lease providers – Fingo and Novated Lease Australia. The cost includes registration, insurance and an end of lease payment to take full ownership of the EV after 36 months. (3) Purchase price as per Tesla website. Includes stamp duty, GST and the first year of green slip, registration and insurance costs. (4) Registration, green slip and insurance based on actual 2023/24 costs for a Tesla Model Y. (5) Mortgage example assumes all the upfront cost of $66,092 is added to the home mortgage at an interest rate of 6.3% (being the average Australian home loan rate per money.com.au). Interest and principal is then assumed to be repaid over three years in line with the CBA home loan calculator. Car finance costs as per carclairty.com.au, including a $12,000 upfront deposit and no end of term payment. In this case, Car Clarity quoted an APR of 8.8% but this could differ depending on your credit rating. Final word EVs are becoming a compelling choice for many drivers. Quicker acceleration, smoother driving, superior technology, minimal fuel and maintenance costs, no CO2 emissions, no air pollution…the list goes on. The price of EVs has dropped significantly in the past two years. Many models are now comparable in cost, or even cheaper, than their gasoline or diesel counterparts. Novated leasing can further enhance affordability by leveraging tax benefits, making EV ownership a more realistic option for a broader range of drivers. If you are an in the upper tax bracket you can now acquire a Tesla Model Y using a novated lease for close to the same price as a Toyota Corolla using traditional car finance!! One of the biggest myths surrounding EVs is that their battery packs will need frequent replacement. This is simply not true!! At the recent Everything Electric expo in Sydney, Robert Llewellyn caught up with Nigel Raynard of Byron Bay Luxury Tesla. Nigel has driven over 700,000 kilometres in his 2017 Tesla Model S.
The average Australian motorist covers 12,000 km per annum, which at this rate would give them a whopping 55 years’ worth of battery life!! The much-anticipated Tesla Powerwall 3 has just been released in the US. The Powerwall 3 is the latest version of Tesla’s home battery system.
This sleek, powerful battery system lets you store solar energy, gain independence from the power grid, and even provide power to your home during outages. What are the key similarities and differences to the Powerwall 2? Power storage and power output Both the Powerwall 2 and Powerwall 3 have 13.5 kWh of storage capacity. However, the power output of the Powerwall 3 is improved significantly increasing from 5 kW to 11.5 kW. While big loads will soon drain the battery, this does however mean you will avoid hitting the grid if you run multiple appliances concurrently e.g. the kettle, toaster and oven. Charging of the Powerwall 3 is limited to 5 kW like the Powerwall 2. In-built solar inverter Perhaps the biggest game changer with the Powerwall 3 is the integrated solar inverter allowing solar to be connected directly for high efficiency. The in-built inverter is rated at 11 kW meaning it can convert up to 11.5 kW of solar energy from your panels into usable electricity for your home. As the battery can also charge at 5 kW, the system has a total capacity of 16.5 kW. Under the Clean Energy Council rules in Australia, which state that panel capacity cannot exceed inverter capacity by more than 33%, the Powerwall 3 could potentially support up to 20 kW of solar panel capacity without the need to purchase a separate inverter. Price The Powerwall 3 is not yet available in Australia, however in the US it is priced similar to the Powerwall 2. This in effect represents a significant value add for the consumer given the built in inverter which could save thousands of dollars on the cost of an overall system. Imagine going on a road trip and before your return journey you stop to fill up with petrol. Now instead of paying $2 per litre someone pays you for the petrol you put in your car, and this petrol burns clean emitting no carbon dioxide or carcinogenic compounds.
That’s the power of an EV combined with solar and Amber Electric. After arriving at a hotel I plugged my car in to charge at an Exploren charger, costing $0.33 per kWh. At the same time my solar and battery system is exporting power at an average rate of $0.46 per kWh. I set my car to charge at the same rate that my solar/battery exports; so green electrons are going into the grid at the same rate and same time that I am taking them out. So I’m in effect being paid to charge my car and the energy being used for driving is still 100% renewable. Even on a road trip you can still achieve no cost and 100% renewable driving 🙌 🚘 Congratulations on joining the EV Revolution! Here are some top tips to help you smoothly transition to your new vehicle:
Battery life
This blog will give you an overview of the key ways to charge to your EV, ranging from a standard 10-amp 240V wall socket to a state-of-the-art supercharger.
Let’s first start off by addressing the elephant in the room – “range anxiety”. Electric vehicles have become synonymous with the term “range anxiety” – used to express a fear of not being able to reach your destination before running out of power. However, almost as soon as this phrase became commonplace, it had already become a myth – if it ever was true in the first place.
The job of a solar inverter is to convert the direct current (‘DC’) from the solar panels into alternating current (‘AC’) used in your home and the grid (refer to the appendix for more detail on DC vs AC). The inverter also generally acts as the overall monitoring system for your solar giving you detailed statistics, through a mobile app, on how much power your solar system is generating, how much power your home is using and how much power is being sent to or drawn from the grid.
|
AuthorWrite something about yourself. No need to be fancy, just an overview. Archives
April 2024
Categories |
|
Quick Links |
JOIN OUR MAILING LIST
|