Novated lease helps family get EV for all needs
Michelle and Chris love their new Volvo XC40 Recharge Pure Electric Twin. Even if it has one of the longest car names ever.
They’ve had the car for a year now and haven’t ‘looked in the rear mirror’ since switching to an EV.
Having purchased the car under a novated lease, they avoid paying fringe benefits tax. This makes the repayments affordable and easy, costing them less per month than lower spec petrol alternatives.
The challenge
“We knew that buying the Volvo wasn’t going to be cheap. It is a luxury car, so we knew we would be up for a lot,” said Chris.
“When we bought the car a year ago, there just weren’t that many EVs on the market for less than $60k. Thankfully the Australian Government lets you lease EVs without paying fringe benefits tax. On the lease, the Volvo costs us less than a low spec Volkswagen.”
“I was more sceptical than Chris that an EV would be the right choice for our family. We also weren’t sure if we could find a car that suited all of our needs,” said Michelle.
“When we first started looking, our main focus was on long range, exciting acceleration and handling. But then we discovered we were expecting, so we had to find a car with all the family comforts and room for kids.”
The action
“Thankfully we found the Volvo and it ticks all the boxes. It is very fast, especially when Chris is driving, and also fits the baby and all the related gear in the back,” said Michelle.
“I normally take the car to work, and Chris rides his bike, so I guess we can say that our personal transport is now powered by 100% renewable energy!”
“Under the novated lease, it all gets rolled into one monthly payment,” said Chris.
“We never pay out of pocket for things like servicing, tyres, or insurance. We also get to pay it all out of our pre-tax salary which is the main benefit of novated leasing. In the ACT we also don’t have to pay for registration for the first two years.”
The benefit
“I’ve personally had some fun petrol cars in the past, but this is different in a way that is really enjoyable," said Chris.
“The Volvo has better acceleration than any Holden V8 ever made! Some of my mates scoffed at that comment when I first got the car. But those same mates have now ordered EVs themselves!
Our house is fully electric, and we didn’t have to make many changes to accommodate home charging. Owning an EV has been a great way to start conversations about climate action and sustainability.”
“For me, owning an EV has been smooth and easy,” said Michelle.
“Charging at home is easy and affordable, particularly with our home solar. Chris has set up a system using a simple DIY smart plug to maximise charging when we have power coming from the rooftop solar. I even get a reminder on my phone if I forget to plug in the car when I get home!
“We only drive 50 to 100 kilometres a day, so the range in and around Canberra is totally fine for our needs. And now we have Abi with us, we can say the whole family loves owning an EV!”
Acknowledgement of Country
We acknowledge the Ngunnawal people as traditional custodians of the ACT and recognise any other people or families with connection to the lands of the ACT and region. We acknowledge and respect their continuing culture and the contribution they make to the life of this city and this region.