Novated leasing a Tesla: Oly answers your questions

Thinking about getting a Tesla? You’re plugging in at the right time! The 2024 Tesla Model 3 and Tesla Model Y have hit Aussie shores with not just one, or two, but three price slashes! And thanks to the government’s EV Discount driving extra savings with a novated lease, you could snag some juicy tax perks on a Tesla through Oly and save yourself stacks each year. Oly answers your questions here.

3:30 minute read

Published on March 14, 2024

Can I get a Tesla on a novated lease?

Absolutely! Oly is making novated leasing accessible to the millions of Aussies working at small and medium businesses. And when it comes to getting a Tesla, novated leasing is a no-brainer.

Here's why:

1. Heard about the government's EV Discount? It’s only accessible with a novated lease and makes eligible electric cars (like Teslas) or petrol-based plug-in hybrids (PHEVs) exempt from fringe benefits tax (FBT). This means your novated lease payments could come from 100% before-tax salary and you could save thousands of dollars every year!

2. Forget full price. Using a novated lease to get your Tesla means you face no upfront GST (that’s up to $6,334 in savings right there for FY24/25).

3. Novated leasing is also super convenient with all your car-related expenses - charging, rego, insurance, servicing (the whole kit and caboodle!) - bundled into one cruisy regular payment taken directly from each pay.

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The EV Discount explained

The EV Discount is a sweet little government incentive to get more people driving electric. So, which EVs are eligible?

For starters, the car must be valued under the luxury car tax threshold (for FY25 this is $91,387 for electric cars), and first held and used after 1 July 2022.

Next up, the car needs to be a BEV (battery electric vehicle) or a PHEV (plug-in hybrid electric vehicle) ― although PHEVs won’t qualify for the EV Discount after April 2025. HEVs (hybrid electric vehicles) are not eligible.

BEVs: EV Discount Eligible.
PHEVs: EV Discount Eligible HEVs: Not eligible for EV discounts

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How much does it really cost to lease a Tesla?

Let’s say you want to lease a Tesla Model 3 with a driveaway price of $63,992 over a 5-year term. You earn $90k annually, and you’ll spin it 15,000 kms each year.

With a novated lease, your weekly leasing payments could be as little as $244^ ― almost the same as a petrol car worth over $20k less!

Is it better to lease or buy a Tesla?

In June 2024, the driveaway cost for a Tesla Model 3 is $63,992.

With a 5-year novated lease (and thanks to the EV Discount), the net cost works out to be almost $500 cheaper at $63,510!

And because you can salary sacrifice the whole cost of your Tesla including running costs, you could save a whopping $43,148^ over the course of your lease.

Two popular ways to get a Tesla

Let’s face it, not everyone can splash out on a Tesla up front. The two more common ways to get a Tesla involve getting finance, like with a car loan or a novated lease.
But here’s the thing.
With a car loan, you miss out on the nifty tax benefits that allow you to pay for your Tesla from your before-tax salary.

How does it work?

Say you earn $90k a year, and you want to get yourself a sleek Tesla 3. With a car loan over 5 years, that’ll set you back around $101k^.
But get the same ride with a 5-year novated lease and you could pay around $64k. That’s a difference of $43k^. Imagine how many cool bumper stickers you could buy with that?

Using Oly’s Tesla novated lease calculator

Oly’s novated lease calculator lets you calculate the estimated savings on the Tesla of your choice.

Simply plug in the cost of your Tesla, how many km’s you plan to drive each year, your salary, lease term - and Oly will do the rest!

Start calculating your savings now with Oly’s EV calculator.

Let Oly help you land your Tesla

If you’re serious about tapping into awesome savings, Oly can help you find a great deal through a mega network of dealerships.

Put your pedal to the metal and get started now.

^ Disclaimer

^ Displayed price is only available through a novated lease administered by Oly. Estimated costs have been determined based on the following assumptions: 1) The example assumes that the car is an eligible zero or low emissions vehicle, 2) The lease is an Oly fully maintained lease, 3) A 5-year lease term , 4) A residual value of 28.13% of the vehicle purchase price payable at the end of term, 5) The interest rate used to calculate the weekly lease payment (in the case of a novated lease) and the weekly repayment (in the case of a car loan) is the same, 6) Gross annual salary of $90,000, 7) An annual distance travelled of 15,000kms, 8) The value of the car at the first retail sale was below the luxury car tax threshold of $91,387 for fuel efficient vehicles, 9) The car is first held and used on or after 1 July 2022 and 10) The vehicle is purchased in NSW. Additionally, the estimated annual operating costs includes estimates of fuel/electricity, maintenance, four replacement tyres, registration, CTP and comprehensive insurance, roadside assistance, and fleet management fee have been calculated on a GST exclusive basis, on the assumption that your employer will be entitled to GST input tax credits and that they will pass on the benefit to you. GST is payable on your ECM contributions. State Stamp Duty rates apply. PAYG tax rates effective 1 July 2024 have been used. The indicative price quoted for the novated lease is based on vehicle quotations received on 1 June 2024 and does not include any optional extras. Any optional extras that you choose will affect the cost of the novated lease and residual value. The novated lease offer is based on the assumption outlined in the comparison table and is an indicative cost approximation of the selected vehicle and model stated and the amounts may change at the time the novated lease quotation is completed and finalised. Individual circumstances have not been taken into account as this will affect the overall weekly cost amount and the benefits of a novated lease. Savings shown are indicative and reflect estimated tax savings over the full-term of the lease. The total amount saved is a comparison between a novated lease based on the assumption outlined above and the purchase of a vehicle and payment of running and maintenance costs using post-tax earnings. Actual savings will depend on personal circumstances and may vary depending on the vehicle model and price. Oly recommends you seek independent financial and taxation advice.

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