Electronic or Hybrid Car: Which One Can You Put Into A Novated Lease?

 

Will you consider a hybrid or an electric vehicle for novated lease? Here are the possibilities:

An electronic vehicle or car runs through electricity as a power source, due to the use of electric motors these vehicles have strong smooth acceleration. It has been around since the 19th century, but its popularity was short lived. It was only until recent years that the market suddenly demanded these cars to return to production, as a response to the erratic oil prices and the need to reduce carbon dioxide emissions, which contribute to a number of environment issues. Recently, the market was introduced to hybrid cars or cars that have two power sources, electric motors and internal combustion engine. This car design concept emerged as a practical alternative to usual car options as they practically consume less fuel and produces less emission. In terms of driving and cruise control, hybrid car features are perfect for the streets of the city, where there are frequent stops, coasting and idling periods. On the other hand, electric cars are basically cars that resemble the cruise control and engine power that conventional cars possess—minus the fuel. As the name implies, electric cars are cars that are solely powered by electricity.

A novated lease is a three agreement between the employee, employer and a financier that allows a car to be rented by or be paid for by an employee based on his/her salary range. With this car financing option, the employer will manage car lease or car plan payments through salary deductions. It is considered as part of salary packaging wherein the employer will be the one to pay all the expense of the car including insurance, maintenance, registration and fuel.  Traditionally most people choose an internal combustion engine motors.

In addition to diesel or gasoline fired cars, there are two other types of cars that can be considered--electric and hybrid. Hybrid cars can be put on lease. The same process of application is applied to hybrid cars provided the value of the car is under the Luxury Car Tax Threshold. Together with the application form and necessary requirements one should also estimate how much fuel you will use for the entire year. Hybrid cars can be novated for as low as $153 a week. On the other hand, an electric car can only be novated if the electric consumption of the car can be measured, because traditionally one should submit a petrol tax invoice as proof of car gas consumption, in electric cars there is still none.

The possibilities of putting an electric car on lease on the near future will mainly depend on the demand this type of car procures and a technology that will measure its electric consumption in monetarily value.