Tesla novated leases are an excellent way to get into an electric vehicle (EV) without the hassle of financing it. In addition, through this type of arrangement, you can benefit from tax deductions, lower monthly payments and a more extended warranty.

When leasing a car, one of the essential factors to consider is its annual mileage limit. Exceeding this limit means paying additional per-mile fees, as per-mile allowances cannot be extended.

Purchasing a Tesla

When you’re ready to buy a Tesla, various Tesla novated lease financing options are available. Some packages provide lower monthly payments and longer terms, while others have more expensive upfront fees. Ultimately, your decision should depend on how much money you’re willing to spend, the model desired, and your driving habits.

If you’re in the market for a new car and want to save money, Tesla novated lease may be your ideal solution. This financing method allows for payment of your electric vehicle’s finance and running costs before tax, providing up to 45% cash savings compared to traditional financing methods.

To get started, you’ll need a credit card with at least $500 available in credit. After that, submit an application for credit to your Tesla Account.

Your application will be reviewed within one business day. If approved, you’ll be notified via e-mail from Tesla; if denied, a member of the Tesla team will reach out to discuss the next steps.

Once your credit application is approved, you must pay the initial order fee and any deposits necessary for your Tesla. After that, you can select which financing package best meets your needs.

Before signing any lease, comparing prices and gaining as much information about electric vehicle leasing as possible is essential. Doing this will enable you to make an informed decision and avoid getting taken advantage of.

Decide whether to purchase or lease a Tesla by doing your due diligence. Deciding can be overwhelming, and you may have to compromise on the most important features. But keeping things simple and focusing on what matters most will give you the edge when choosing.

Taxes

A novated lease is one of the best ways to save on taxes when purchasing a Tesla. This type of agreement allows you to use pre-tax salary for car running costs and deduct that payment from your taxable income, saving thousands on the purchase price while having much lower tax bills.

With a novated lease, you can claim up to $5,885 in GST savings on the purchase price of your car. However, if the total purchase cost exceeds $64,741, this incentive won’t apply to you.

It’s worth noting that the government recently significantly changed how electric vehicles (EVs) are taxed. To make climate-friendly cars more accessible to consumers, they removed a cap on tax credits which made EVs from companies such as Tesla, General Motors and Toyota ineligible for these incentives.

The new regulations apply to all-electric vehicles with a purchase price of $84,916 or less and plug-in hybrids that meet the same maximum purchase price. Furthermore, these vehicles will be exempt from fringe benefits tax (FBT) from mid-2025 onwards.

FBT (Family Benefit Tax) is a tax that employers who provide employees with in-kind benefits such as car leases or private health care. It has been around since the 1980s as an effective way for employees to save on take-home pay.

Insurance

The Tesla novated lease program can be an attractive option for luxury electric car drivers who want to drive for an agreed-upon period. Not only does it save you money on monthly payments, but you may be able to upgrade to a newer model after three years, too – provided you take into account any insurance needed and other associated expenses associated with ownership. However, be sure to factor in all relevant costs associated with owning, such as repairs and maintenance required on the vehicle.

Tesla vehicle insurance can be quite pricey, so shopping around for a great deal before signing on the dotted line is essential. Make sure your insurer understands your specific vehicle needs so that you get the most comprehensive coverage at a price point that works within your budget.