Novated Lease EV or Toyota Hybrid

focus123 on 01/09/2025 - 14:19
Last edited 01/09/2025 - 16:55

Looking for some thoughts on vehicle ownership options for my next role.

Daily commute: ~40km round trip (city/metro drive, morning and evening traffic, 5days a week)

Annual travel: ~10,000 km (city driving)

Pre-tax income: $130,000

I’ve learned that EV novated leases are fully pre-tax (FBT exempt), which makes them attractive for salary packaging. I’ve also included some Toyota hybrids (Corolla Cross, Yaris Cross, RAV4) because of their strong resale value.

👉 Please ignore Elon’s politics and Australia-China geopolitics — I’m only after feedback on economic value, ride safety, and comfort.

EV Options

BYD Atto 3

  • Price: $42,000

  • Retained value (4 yrs): $21,000 (50%)

  • Weekly novated lease: $185

  • Residual: $15,750

  • Equity: $5,250

  • 4yr cost (after-tax): $18,223

BYD Sealion 7

  • Price: $58,000

  • Retained value (4 yrs): $29,000 (50%)

  • Weekly novated lease: $239

  • Residual: $21,750

  • Equity: $7,250

  • 4yr cost (after-tax): $23,075

Tesla Model Y

  • Price: $64,000

  • Retained value (4 yrs): $35,000 (55%)

  • Weekly novated lease: $258

  • Residual: $24,000

  • Equity: $11,000

  • 4yr cost (after-tax): $21,536

Hybrid Options

Toyota RAV4 Hybrid GX

  • Price: $50,000

  • Retained value (4 yrs): $37,500 (75%)

  • Weekly novated lease: $278

  • Residual: $18,750

  • Equity: $18,750

  • 4yr cost (after-tax): $26,822

Toyota Yaris Cross Hybrid GX

  • Price: $36,000

  • Retained value (4 yrs): $29,000 (80%)

  • Weekly novated lease: $194

  • Residual: $13,500

  • Equity: $15,500

  • 4yr cost (after-tax): $16,538

Toyota Corolla Cross Hybrid GX

  • Price: $42,000

  • Retained value (4 yrs): $33,600 (80%)

  • Weekly novated lease: $239

  • Residual: $15,750

  • Equity: $17,850

  • 4yr cost (after-tax): $21,284

Used Car Option

Toyota Camry Hybrid (2012–2013)

  • Purchase: $14,000

  • Sale after 4 yrs: $9,000

  • Running costs:

  • Fuel: $1,200/yr

  • Service: $500/yr

  • Rego: $700/yr

  • Insurance: $1,200/yr

  • 4-yr running total: $14,400

  • Plus $1,000 (tyres & battery) + $1,000 (unforeseen)

  • Total 4-yr ownership: $21,400

Edit: I added the total after-tax ownership cost as it helps identify the impact on our take-home salary. Model Y shows surprisingly good value there when compared to the base model Corolla Cross.

Poll Options

  • 13
    BYD Atto 3
  • 56
    BYD Sealion 7
  • 86
    Tesla Model Y
  • 4
    Toyota RAV4 Hybrid GX
  • 1
    Toyota Yaris Cross Hybrid GX
  • 3
    Toyota Corolla Cross Hybrid GX
  • 5
    Toyota Camry Hybrid (used : 2012–2013)
Automotive BYD Auto Car Novated Lease SUV Tesla Inc Toyota Electric Vehicle

Comments

  • Stealtho on 01/09/2025 - 14:24
    +5

    bike

    • focus123 on 01/09/2025 - 14:28
      +7

      Thanks, the travel route doesn't have dedicated bike lanes, and heavy B-Doubles are always present. So bike is not a good option for this use case.

      • Dr Phil on 02/09/2025 - 20:34
        -3

        Dear focus123

        Since you will be driving the car its best if you take each car for a test drive first.
        Do your in-depth research. Maybe see what cracker deals you can negotiate.
        Then decide

        It matters not what anyone says here as its based on thier personal opinion, own unique circumstances and on thier own values, beliefs.and priorities. These are most likely different to yours and no 2 people are the same.

        So get a piece of paper

        Write down whats important to you
        Put a value against each one
        Then apply these values to each vehicle in your shortlist and give each car a score.
        But like I said, take each one for a test drive FIRST as you will quickly knock out most on your list.

  • mboy on 01/09/2025 - 14:31
    +5

    I'm not doubting the Toyotas you've mentioned will retain their value much better than the EV's, but I reckon the 20-25% depreciation after 4 years is pretty optimistic. How'd you land on those numbers?

    • JimB on 01/09/2025 - 14:46
      +1

      Using Covid residuals.

    • focus123 on 01/09/2025 - 14:49

      I had a look at the current driveaway price using the Toyota customise calculator, and got Dealers' "before driveaway" prices listed on CarSales for 4-year-old Toyota hybrids with less than 60,000km in South Australia. I think limiting the search to SA may have shown higher prices as SA prices are traditionally higher for 2nd hand cars due to low supply.
      The SA vehicle fleet is the 2nd oldest in Australia after Tasmania.

      • mboy on 01/09/2025 - 15:03
        +4

        Well if you're indeed in SA then it's consistent with your circumstances, but I’d still lean a bit more conservative on those Toyota depreciation figures.

        • focus123 on 01/09/2025 - 15:13

          Thanks, Yes, Toyota jacked up the prices of their entire range by about 10% or so that helped used Toyotas to retain value better. But with easing supply chain issues and more competition from china, it is sensible to shave 5-10% more from expected retained value in 4 years time.

          • pwnd on 04/09/2025 - 10:02

            @focus123: If you do go down the Rav4 route, factor in the fact the new model is coming out next year, which will mean that the older shape Rav will have a bigger depreciation hit.

  • dasher86 on 01/09/2025 - 14:42
    +3

    What about a used BYD Atto 3 2023 ($30-35k)
    Large $10-15k depreciation already mostly eaten up.

    • changyang1230 on 01/09/2025 - 14:44
      +5

      Second this. A used EV which is eligible for FBT-exempt novated lease is by far the best value.

      • kiitos on 02/09/2025 - 07:53

        I didn't think the FBT exemption could carry over if it was sold?

        • changyang1230 on 02/09/2025 - 10:58
          +3

          Not exactly sure what you mean by "carry over FBT exemption".

          What I mean is - if you find an EV which is first used and held after 1/7/22, and has never paid luxury car tax throughout its history, then you can definitely do FBT-exempt novated lease on it as per ATO rules.

          https://www.ato.gov.au/businesses-and-organisations/hiring-a…

          • kaboom mel on 03/09/2025 - 17:31

            @changyang1230: I thought the car had to be new or deal demo to qualify .

            It also says so in the eligibility criteria "the first time the car is both held and used is on or after 1 July 2022"

            • changyang1230 on 03/09/2025 - 18:30

              @kaboom mel: That’s precisely the rule - the car just has to be first used and held after 1/7/22. It does not have to be new. A used car that was first held and used on 1/11/22 would do it. (EV, no LCT ever too)

    • focus123 on 01/09/2025 - 17:18

      Thanks, will keep this option in mind. I still did not find a calculator for used car leases.

      • dasher86 on 01/09/2025 - 18:14
        +1

        Basically the same except that there might not be gst on purchase is some cases.

  • MS Paint on 01/09/2025 - 15:48
    -1

    Tesla Model Y
    Price: $64,000
    Retained value (4 yrs): $35,000 (55%)

    Tell him he's dreaming. Workmate just finished up a 3 year lease on a Y and is $10k out of pocket to payout the lease from best sale offer price. $10k buys a metric shit tonne of petrol. FFS

    • mboy on 01/09/2025 - 15:56
      +4

      Sounds like your workmate had the same mentality as a lot of people leasing EV's during peak covid, which was that they could lease a car and then cut a profit.

    • focus123 on 01/09/2025 - 16:00
      +7

      yes it could be true as some of the early high-end Model Ys had RRP of around $100k.
      In the past 2 years, Tesla has cut the price of Model Y aggressively to face the competition from Chinese and Korean EVs. Unfortunately, the early buyers had to face non-ideal depreciation on their asset because of that.

      • MS Paint on 01/09/2025 - 16:09
        +5

        That's exactly what happened. Purchased at the peak
        then Elon slashed prices to remain competitive. Nothing to suggest this trend won't continue though likely it will be less aggressive.

        • safrane on 02/09/2025 - 11:46

          I don't think many Tesla buyers thought that Elon would cut prices so aggressively, because that will absolutely damage the brand as Tesla owners get hosed in the resale market. But he did and with the recent politics, plus future RUCs on EVs makes Tesla resale values are in uncertain territory. Many Tesla owners today would not be buying Teslas if they had known about all this beforehand.

          When NZ introduced RUCs it absolutely cratered the EV market, because the most efficient hybrids (aka JDM Toyota Prius Cs badged as Aquas) are everywhere and available cheaply, and their fuel savings meant that they pay less in road tax per KM than an EV, especially in urban environments.

          With EVs you're always playing a long game with government policy and international (more specifically Chinese) trade policies, and market dynamics in response to that. For example what if Trump tells Albanese to stop importing cars from China, or the US will slap 100% tariffs on Aussie goods?

          Whereas there's always a decent (maybe not great, but OK) market for a good Toyota, for the next 10 years at least.

          Of course there could be a major war in the Middle East and petrol prices may spiral out of control, but looking at recent events post-initial Ukraine invasion, the oil market has been very reluctant to go on a hyper-cycle because demand has been softening, partly because of China's economy, partly because of US shale, and partly because of EVs.

          And then there's also the issue of electricity and home solar - if you can make it work.

        • grocerygetter on 03/09/2025 - 07:21
          +1

          Sorry what?

          I was one of the earliest buyers at $74220 in July 2022.

          My car has just come off lease and my Payout is $27899 (incl GST)

          Model Ys are selling for way more than $27899 so I don’t understand how you’d be out of pocket…

          • MS Paint on 03/09/2025 - 09:41

            @grocerygetter: I'll ask for more details next time I'm working with him.

            Was your lease 3 years, 46.88% residual?

            • grocerygetter on 03/09/2025 - 16:52

              @MS Paint: 37.6%

              Because I did a one year lease and then a subsequent 2 years

              • focus123 on 03/09/2025 - 18:05

                @grocerygetter: @grocerygetter did you get any benefit by doing the lease in 2 steps?

              • MS Paint on 03/09/2025 - 18:24
                -1

                @grocerygetter: That's probably the difference. Pretty sure he had a fair bit tied up in expensive options as well.

      • MrThing on 03/09/2025 - 19:02
        -2

        old shit box model Ys

    • supersabroso on 01/09/2025 - 19:01
      +3

      I don't know where your numbers came from for the hybrid cars but they should be a lot more expensive due to the FBT being applicable for the EVs only. The novated lease costs I got for a $64k EV was about $47k over 5 years + the residual compared to a $44k hybrid car which costs $56k/5 years + the residual. It should be a no brainer to go for the EV car. Having said that you also need to consider quality and running costs, the BYD Sealion 7 will be $1.8k in insurance vs $3k/year for the Tesla Model Y. The Sealion 7 is also more luxurious compared to all the hybrid Toyota GX models which are a joke. You need to be looking at the Cruizer model ($56k) to get close to the luxury built into the Sealion 7.

  • hmac on 01/09/2025 - 15:49
    +6

    After 4 years, I don't think you will be selling a 17 year old camry for 9k, probably a lot closer to 5K or lower. Also 14K is a bit rich but hey market has changed

    • focus123 on 01/09/2025 - 16:04

      agree, the used car market is still distorted from Covid era shortage and it gotten worse with the high influx of migrants and students who usually buy the vehicles that are nearing the end of their life. But yes in 4 year the demand will not be the same as there are many new brands in the market.

  • apple2016 on 01/09/2025 - 16:02
    +3

    where do you get the retained values from?
    This can vary a lot based on conditions. If Petrol prices doubles, ICE cars values will plummet. On the other hand if EV battery tech improves, existing Ev's values will drop a lot…
    I dont think you can use it as a valid comparison point.

    • focus123 on 01/09/2025 - 16:05

      I had a look at the current driveaway price using the Toyota customise calculator, and got Dealers' "before driveaway" prices listed on CarSales for 4-year-old Toyota hybrids with less than 60,000km in South Australia. I think limiting the search to SA may have shown higher prices as SA prices are traditionally higher for 2nd hand cars due to low supply.
      The SA vehicle fleet is the 2nd oldest in Australia after Tasmania.

  • netjock on 01/09/2025 - 16:19
    +3

    Total cost of ownership is the number you need to work out

  • djesr on 01/09/2025 - 16:38
    +1

    Has anyone done a NL calculation for doing 1yr lease periods, as the second 1yr lease will be on the residual amount and the highest depreciation is in the first fe years

    • Inertia-g on 02/09/2025 - 07:50
      +1

      I’ve had mixed advice (and experience) with this.

      One NL company said that even if you extend the lease, the depreciation is based off original purchase, but that is not how it has worked out for me in reality. I did a 2 year lease, then changed leasing companies (fortunate that my company offers 3 options), and have gone for an additional 1 year. The lease repayments are about the same, but the residual is massively lower, as you have suggested.

      I can see the reasoning for long leases in an ICE vehicle - to amortise the maintenance costs, but as that is not required in an EV, doing shorter leases makes more sense and gives greater flexibility

      • djesr on 02/09/2025 - 09:29

        Yes, I agree. I'm still not 100% sure but I believe overall the best option is to go 1yr leases, but I think the monthly payment is higher for 1yr leases

      • changyang1230 on 02/09/2025 - 11:05
        +5

        The residual value is set by ATO as 65.63% at 1 year, 56.25% at 2 years, 46.88% at 3 years, 37.50% at 4 years and 28.13% at 5 years.

        Even when you do a repeated lease of say 1+1+1, at the end of that third year, the residual value is to be 46.88% of the original car value, instead of 65.63%^3 = 28.27% of the original car value.

        The ATO made this explicit in Taxation Determination TD 93/142 (issued in 1993). For example, in Example 3 of the ruling:

        A car with an effective life of 8 years is acquired after 30 June 2018 and leased for a period of 1 year. At the conclusion of that lease, a new lease is entered for 2 years. Using the 8-year effective life column in the table in paragraph 3 of this Determination and the total leased period of 3 years, the minimum residual value will be 46.88% of the cost of the car. The table applies the same irrespective of whether the car is leased through the same leasing company or another leasing company.

        https://www.ato.gov.au/law/view/document?docid=TXD/TD93142/N…

        Despite this unambiguous guidance, more than 30 years later some companies still attempt to apply the 65.63% rate repeatedly, which is plainly incorrect. In practice, this area remains poorly audited and lightly regulated, so such practices often go unchecked. Nonetheless, the law is crystal clear: repeating the 65.63% figure contravenes TD 93/142 and amounts to obtaining an unlawful financial advantage.

        • Inertia-g on 02/09/2025 - 11:16

          @changyang1230 do you know how it (should) work in practice when buying a second hand car on a novated lease? Should the residual still be based of the original purchase price when new?

          • changyang1230 on 02/09/2025 - 12:03
            +1

            @Inertia-g: This TD does not really talk about what the calculation is if your leased item is used in the first place. So no, I am not entirely sure. I think if it was a simple purchase then it would probably start from 65.63% at 12 months after your starting point; however if you got the EV from someone who already had it under NL during their time, I don't know if they have to follow this TD93/142 method.

            • WhyAmICommenting on 02/09/2025 - 23:43
              +1

              @changyang1230: Hey man, still loving my MG4 - that was such a steal on the lease. Cheers!

            • Poor Ass on 03/09/2025 - 11:22
              +1

              @changyang1230: What do you do for work and why you know so much about novated leases?

              Agree that effective life residual % based is never really enforced when it comes to 1+1+1+1+1 stacks… no one actually checks

              There are also so much grey areas too

              The NL companies can request the financier to adjust the RV lower than the ATO's rates if the vehicle is driving excessively but what this does is increase the salary sacrifice amount which is good if you are trying to reduce tax and pay less residual. In practice this can be done, but most NL companies just stick with the ATO's rates to avoid future issues. I mean if a car is driving 100000km is not going be worth 65.63% of the value vs a car doing 10000km a year. So there are set ATO RV rates but there is also the justifiable rates that the financier gets told to use.

              Depending on the NL company and financier, some may do vehicles pass 10 years beyond the 8 but when they do they don't care about the effective life they just use 65.63% for 1 year leases every time. It depends on what the least amount of finance both parties are willing to write and the lowest I've seen is $4000 and 12 year old used car. There's no law about how old or value a novated lease vehicle can be so it's up to the financier to take on that risk if they accept.

              • changyang1230 on 03/09/2025 - 18:31
                +2

                @Poor Ass: I’m a nerdy doctor who first looked into NL for myself and in the process got into the rabbit hole and developed the spreadsheet calculator which I then shared with the world.

                Essentially a nerd’s niche interest gone too far lol.

                • Poor Ass on 03/09/2025 - 23:13

                  @changyang1230: Haha now I know why you are looking at 1 year lease … Too much income cumming out of ya ass need to reduce that shit

                  • changyang1230 on 04/09/2025 - 00:15
                    +1

                    @Poor Ass: Nah I never looked into 1 year leases seriously myself.

                    My leasing company is the honest one who immediately pointed me to the TD93/142 and told me "other dodgy companies do it but our financier wouldn't allow it".

                    This was when I was first considering the pros and cons of various durations. I ended up with a 5-year as I was worried about the 2027 exemption ending. And I have pretty little worry about job security as an employee in public sector. But I suppose I could have looked into 3+3 or something but I was a bit sick of handling the red tapes (the first time I approached HR to sign off the deed of novation, it was in a hidden building in the hospital behind a locked corridor with no one answering my knock lol)

                    • whyisave on 04/09/2025 - 08:35

                      @changyang1230:

                      about the 2027 exemption ending

                      which exemption is this ?
                      (is this the FBT exemption?)

                      EDIT:
                      I saw your post here,
                      that explains it.

                    • Poor Ass on 04/09/2025 - 10:08

                      @changyang1230: without revealing the NL company, what financier was that followed the ato RV rule?

    • kaboom mel on 03/09/2025 - 17:38

      Won't a long term lease like a 5 year lease make sense? I mean what are the reasons you will prefer a short term lease . Yes your depreciation is highest in 1st year but then no advantage is stopping there. You can still continue to claim (smaller) depreciation and still paying pre-tax dollars and can also claim all the running costs - rego/insurance/maintance through that.

      I am buying a car this month and going through the same exercise, so keen to know.

      thanks

      • Poor Ass on 03/09/2025 - 23:12
        +1

        Short term good if you are one highest tax bracket required maximum reduction in gross income lowering income tax

        If you keep re-leasing year by year you also get to buy a very cheap car at the end

        Long term good to avoid paperwork and have a more spread out of expenses / tax savings. Good if you are in stable job industry.

        No one lease term suits everyone each person's circumstance is different
        There's no

        • kaboom mel on 04/09/2025 - 09:34

          I am in the highest tax bracket salaried employee, so as per this it will be better to do 1 year lease. But when what should i do the second year - pay/financial the residual and keep the car or get another novated lease? if i get another novated lease, then as per the ATO rules, the depreciation is pre-set so i don't get any benefit in renewing or taking out a longer lease.

          And if i am paying the residual and buying the car, then i lose tax benefits on the ongoing costs of the car - service, maintenance etc . Plus assuming i have to finance the residual and want keep the car, then i am not paying those re-payments pre-tax

          • Poor Ass on 04/09/2025 - 10:01

            @kaboom mel: good to know rich guy

            if you are liking your car and plan to keep it for a decent amount of time you don't actually need to pay off the residual at maturity

            what you would do is re-lease or refinance the residual amount when it matures for another 1 year that way you keep all your benefits and pay the lease payments at a lower price

            mind you that re-leasing year by year is only good if you are trying to reduce maximum amount of tax and buy out a car for cheap in a short amount of years

            so in a way you need to consider how long you intend to keep the car and this can be hard but that way you can plan how long you would like to lease the car for to get the max savings

      • changyang1230 on 04/09/2025 - 01:46
        +1

        On top of what poor ass said, a big point of contention is the potential for FBT-exemption goodness to come to an end during the mid-2027 review.

        By tradition, typically preexisting arrangement eg a 5-year lease from 2025 to 2030 will be allowed to run its original course even if they decide to remove the exemption in 2027; however if you do the repeated 1+1+1 etc, you might be out of luck if you have a lease that runs from September 2026 to September 2027, and in July 2027 they simply call a stop to everything.

        • Poor Ass on 04/09/2025 - 10:06

          yes this is true

          but back when I was working during when you had to meet certain travel to avoid a FBT liability due to sufficient post-tax they had a grandfather system where they got 1 year after it finish to reap the benefits.

          Also for businesses that have a company car using for private purposes with no changes in financial circumstance, they got to keep the very low rate of 7% post-tax if driving 40000km…. I actually know some people that are still on 7% FBT and those are rare

          So yes anything can happen with the FBT exemption. Maybe the guy can do 1+0.5+5 haha… that's what a lot of people did before FBT related rules got phased out

  • DingoBilly on 01/09/2025 - 17:05
    -8

    Byd would be the way to go. Don't buy a Tesla, they're poorly built and will have terrible resale value.

    • idalla on 01/09/2025 - 17:11
      +7

      I'd pick a Tesla over a BYD for build and resale. OP might want to check out the Geely EX5, Smart #3, Zeekr 7X or X, MG IM6 or MGS5, or Volkswagen ID.5 for other brand options to that list, presuming they're looking for a crossover SUV.

      • focus123 on 01/09/2025 - 17:17

        I ignored MG as so many MG horror stories on reddit.

        • idalla on 03/09/2025 - 09:08

          Ozbargain-favourite MG4s are great cars! I have one, and a Model Y.

          The new MG SUVs I mentioned both seem quite impressive. It’s best to think of the EVs released here by MG as basically being from a different company (different part of the Chinese state automaker lol) than the budget ICE range, which I wouldn’t touch. The discontinued MG ZS EV is more like the ICE company though, so avoid.

          • Poor Ass on 03/09/2025 - 11:28

            @idalla: how does the MG4 drive compare to the Model Y

            which one more comfy and uses less kw?

            • idalla on 03/09/2025 - 15:28

              @Poor Ass: The Model Y is more efficient (in absolute terms, even as a much larger car). The MG4 handles a bit better, has an extremely tight turning radius, and probably has better ride quality/certainly has better tuned suspension. But I’m talking about a 2024 MY, the Junipers are meant to be better.

              Overall the Model Y is a more enjoyable drive being a better appointed package overall but the MG4 Excite really was an incredible deal at $31k last year.

              • Poor Ass on 03/09/2025 - 17:18

                @idalla: MG4 better suspension and ride quality than Model Y?

                • idalla on 04/09/2025 - 10:38

                  @Poor Ass: Yeah I would say so

                  • Poor Ass on 04/09/2025 - 10:39

                    @idalla: you reckon if you changed the Model Y to better suspension it would be better than the MG4?

                    • idalla on 04/09/2025 - 10:46

                      @Poor Ass: The Model Y is certainly the better car overall, it’s the one I choose to drive the most (sorry to my partner lol). The ride quality isn’t a major issue at all, it’s just that the MG4 is known to drive and handle really well for a low-cost car. That reputation is deserved.

                      But if I had to pick one, it would be the Y. As mentioned below the sound system in the Y (2024 RWD) is a million times better than the MG, the glass roof is still impressive one year on, plus heated and power seats, driver seat memory, best software of any car, much more powerful feeling, boatloads of space…)

                      • Poor Ass on 04/09/2025 - 10:49

                        @idalla: lets say I don't care for the superficial stuff and I was letting a no frills weak ass boomer to drive it.. the MG4 would be the car for them right?

                        or…. BYD Dolphin

    • mboy on 01/09/2025 - 18:44

      Nah this is bs. Go drive both the Model 3 and BYD Seal and tell me your honest first impressions about build quality.

      I only drove a Tesla for the first time last year, so I can’t comment on the older models, but there’s a lot of talk about the latest Model 3 & Y improving a lot in build quality.

    • klaw81 on 03/09/2025 - 09:46
      +3

      Tesla build quality is very good for anything built in China. Early US-built models are the ones with build quality issues. 3-5 year old Model 3s and early Model Ys took a major resale hit when the purchase price for new models rapidly dropped $10k but seem to be stabilising now.

      My suggestion would be to buy a 1-2 year old Model Y on novated lease - you'll get a significant discount on new price so the economics will be much nicer.

      • idalla on 04/09/2025 - 10:37

        Reasonable advice

  • idalla on 01/09/2025 - 17:07
    +5

    The EV lease FBT exemption is a deal a bit of a too good to be true, so it's certainly something to act on now if you are interested in switching to an EV. The suggestion in the comments here to lease a post-2022 eligible used EV isn't a bad one.

    I think it's also obviously not true that ICE resale values will continue as they have been, because the market is still distorted by factors like Covid lead time delays and some price stickiness, but this simply will not last. The EV transition will absolutely happen quite quickly, now that cars better than their ICE equivalents are widely available at comparable prices. Government policy will get sharper, because after electricity, passenger and light commercial vehicles are the next-lowest hanging fruit. So I wouldn't be betting on some magic no-depreciation Toyota come the early 2030s.

    • focus123 on 01/09/2025 - 17:15

      True, the government incentive is a game changer, I would not even consider an EV if there was no FBT exemption.
      Toyota has entered the EV game with Bz4x and has completely moved the small passenger vehicles segment to Hybrids. If they keep increasing the "Toyota tax" they will surely lose the market share as there are other players who are willing to cut the price and fill the gap.

  • LanceVance on 01/09/2025 - 17:26
    -6

    Depreciation of EV's is a lot higher than your typical calculator will show. This is an issue elsewhere in the world too, EV values are plummeting. I'd go with the Toyota Hybrid.

    • oscargamer on 01/09/2025 - 18:08
      +6

      Have to disagree

      Bought a base MG4 for $31k, had it about 8 months and put on about 12000km. Sold it for $29000. In that time alone I saved $1500 in petrol vs electrons and then got a taste for EV's and bought a Seal

      • theHMASfriendship on 01/09/2025 - 18:11
        +3

        bought a Seal

        Nice what did you name them?

        • dasher86 on 01/09/2025 - 18:16
          +4

          Seal-ica

          • jv on 01/09/2025 - 20:56
            -1

            @dasher86: Chrysealer Valiant…

        • oscargamer on 01/09/2025 - 19:31
          +1

          George

          • sicarius on 02/09/2025 - 08:33

            @oscargamer: How do you find the seal vs mg4? I'm tossing up which one on a NV. How does the cost factor in compared with the improved drive and feel?

            • oscargamer on 02/09/2025 - 09:27
              +1

              @sicarius: The MG4 is a budget EV. It drives very nicely though and handles particularly well. Awful sound system, like properly dreadful. Surprisingly spacious. Ok to poor internal build quality. Great value when I bought it, but now with price increases, i'd only rate it ok value.

              Seal is significantly more expensive. Better built. When you floor the throttle in the mg, you get instant oomph. In the seal, it feeds it in, in a more controlled fashion. Still f'ing fast, just without the neck snapping effect.

              Surprisingly, the handling in the seal is sloppier than the mg. Great for absorbing long distances, but I prefer a more direct suspension. Great interior build in the seal. Good sound system.

              Different cars….

              • sicarius on 02/09/2025 - 09:50

                @oscargamer: Awesome breakdwon! Interesting on the sound system. Funny how the minor systems impact your drive. I enjoyed the Seal Premium's suspension on bumpy Sydney roads and the acceleration on the Premium in Sports mode was still so quick.

                The Seal Dynamic is only ~5k more than the base MG4 64kWh (would you say the Essence is worth the 2K step up over the Excite version?). How would you compare them?

                Were you worried at all with range? Not sure if I need to step up to the Seal Premium or consider the MG4 77kWh (though that now enters Seal price territory)?

                • oscargamer on 02/09/2025 - 11:10
                  +1

                  @sicarius: You'll have to work out the range thing for yourself, depending on all your variables. I live rural and 99% of my driving is at 100kph and almost exclusively use the granny charger. That's one of the reasons I sold the 51kwh MG.

                  Buy what suits you and what you like

                  Have fun !

  • oscargamer on 01/09/2025 - 17:59

    You haven't included running costs

  • andresampras on 01/09/2025 - 18:17
    +11

    The answer is:
    1. go sit in all of them
    2. test drive the ones you like the most.
    3. factor in the costs you've calculated above (with grains of salt), and choose the one that you would like to drive on a daily basis.

    Numbers don't tell the whole story.

  • rambutann on 01/09/2025 - 20:12
    +1

    To answer the overarching question - yes you should get an EV on a novated lease. My recommendation is that you get a Geely EX5. What you get for the price is incredible. The only reason why you wouldn’t do it is if the range wasnt going to cut the mustard, but you’ll be fine - also once you own an EV you realise you dont need as much range as you thought.

    I have recently reviewed my household vehicle setup, i currently have a Polestar 2 (on a novated lease), a clapped out landcruiser on club plates and a motorbike.

    I was reviewing my options assuming i get rid of the cruiser and motorbike and replace it with one vehicle. I concluded the Geely EX5 (more expensive option) was the best option for me. Far cheaper over a 5 year period than spending $10k on a bog standard vehicle with regular fuel consumption and regular levels of maintenance post tax.

    Before i purchased the polestar i got a quote on a toyota corolla cross hybrid on a novated lease, a $48k car at the time - the polestar was way cheaper because of the FBT exemption.

  • dogboy on 01/09/2025 - 21:07
    -1

    The only cars I would buy in your list is the BYDs. I have some moral fibre so would never, ever buy a Tesla.

    • lew380 on 02/09/2025 - 10:43
      +1

      Reeeeeeeeee!

  • Dollar General on 02/09/2025 - 07:58

    There are loads of BYD’s still in their novated lease periods and when the lease expires, they will flood the market. Expect the retained value after 4 years to be closer to 25% if you’re lucky

  • apple2016 on 02/09/2025 - 09:42

    Weekly novated lease: $$$

    is this amount after tax or pre tax?

    • focus123 on 02/09/2025 - 10:41

      For EVs it's fully pre tax. For hybrid its nearly 50-50 split between before and after tax.

      • apple2016 on 02/09/2025 - 12:12
        +1

        This seems to be excessive

        Tesla Model Y
        Price: $64,000
        Retained value (4 yrs): $35,000 (55%)
        Weekly novated lease: $258
        Residual: $24,000
        Equity: $11,000
        4yr cost (after-tax): $21,536

        Total cost of full ownership after 4 years = $258 * 52 *4 + $24000 + (10% gst on residual) = $80064
        The only tax savings bit is ($45,001 – $135,000 30%) of ( $258 * 52 *4 = $53664 ) = $16 099.2

        So the TCO after tax savings is about $64000 ?
        the only advantage is paying monthly vs outright.

        • focus123 on 02/09/2025 - 13:46

          Thanks, I felt something a miss when I compiled the numbers. Thanks for this point of view. I will re run the numbers.
          It's always hard for me to get the numbers right when I combine the expenses with tax discounts.

        • blupool on 03/09/2025 - 10:01

          The weekly novated lease included: CTP, rego, tyre, insurance, maintenance, etc. plus the petrol saving you will have depending on your km usage.
          This is where your advantage vs outright

          • apple2016 on 03/09/2025 - 19:03

            @blupool: Its Tesla, there is no petrol / maintenance cost involved. Not sure of insurance or rego.
            But still the difference is minimal with the added burden of sticking to the employer etc.
            Incase you loose your job, you will no longer have savings and might end up worse as interest is calculated upfront.

            • ccrap on 04/09/2025 - 00:28

              @apple2016: Still includes insurance, rego, maintenance/service, tyres, repairs (if needed), cleaning and in the case of EVs, depending on the provider, a way to claim charging costs (equivalent of how you would claim petrol in an ICE car).

              Also transferring leases between employers isn't a big deal or difficult - we've had many people change jobs and take their leases with them to the new place.

  • LFO on 02/09/2025 - 12:11

    I’ve also included some Toyota hybrids

    Google says:

    The FBT exemption for plug-in hybrid vehicles expired on April 1, 2025

    • mboy on 02/09/2025 - 12:19
      +1

      True, it did. There's no confusion here, read the sentence before the one you quoted:

      I’ve learned that EV novated leases are fully pre-tax (FBT exempt), which makes them attractive for salary packaging. I’ve also included some Toyota hybrids (Corolla Cross, Yaris Cross, RAV4) because of their strong resale value.

      He's comparing FBT-exempt EVs vs Non-exempt Hybrids.

      • LFO on 03/09/2025 - 11:16

        It was just to clarify.
        Starting with myself and FBT

  • changyang1230 on 02/09/2025 - 12:53
    +14

    At the risk of sounding like a shameless self promoter, I would like to share the free spreadsheet tool helps you crunch these numbers in significant detail and solid accuracy. It models the cashflow, asset and liability over a 5-year horizon. and even simulates how varying offset balances over time affect your home loan interest in each scenario.

    https://www.reddit.com/r/AusFinance/s/VHJ25VpNKu

    As already pointed out by a few of us, another great option is an FBT-exempt novated lease of a USED EV (any EV first held and used after 1/7/22, and have never paid luxury car tax). So do make sure you consider those as well.

    • Nalar on 02/09/2025 - 13:56
      +5

      a real hero enters the chat…

    • muzzamo on 03/09/2025 - 13:27
      +1

      You are a legend - that spreadsheet helped me make the decision!

      The one thing I missed - despite your spreadsheet - was the pros and cons of 1+1+1 lease vs 3 year lease. I went 3 years but probably should have done 1+1+1 for more workplace flexibility.

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