How EV Leasing Models Are Gaining Ground in Australia

—

As electric vehicles (EVs) gain popularity across Australia, car ownership itself is evolving. While buying outright or financing through a traditional loan remains common, leasing—especially for EVs—is rapidly becoming a favoured option for both individuals and businesses. With government incentives, rapidly changing technology, and lower operating costs, EV leasing is offering Australians a flexible path into the electric future.

This article explores how and why EV leasing is gaining momentum in Australia, and what buyers should know before jumping in.

—

1. Why Leasing Works Well for EVs

Leasing is particularly well-suited to EVs because the market is evolving fast:

EV battery range and tech improve each year
Resale values can be unpredictable
Buyers are cautious about long-term commitment to early technology

Leasing offers flexibility and affordability—allowing drivers to upgrade more frequently and avoid concerns about depreciation or outdated tech.

—

2. The Types of EV Leasing Available in Australia

Several leasing models are now available across the country:

❖ Operating Leases: You rent the vehicle for a fixed term and return it at the end. No ownership.
❖ Finance Leases: Similar to a loan, with an option to purchase at the end of the lease.
❖ Novated Leases: A three-way agreement between you, your employer, and a leasing company. Payments come from pre-tax salary.
❖ Subscription Models: Month-to-month access to an EV, with insurance and maintenance included.

Each model suits different needs—novated leasing is popular among salaried professionals, while subscriptions are ideal for trial periods or short-term flexibility.

—

3. How Government Policies Are Boosting EV Leasing

Recent federal and state policies are making leasing more appealing:

Exemptions on Fringe Benefits Tax (FBT) for eligible EVs under novated leases
EV rebates and stamp duty exemptions in some states
Increased salary packaging support from employers

These incentives make leasing significantly more cost-effective, especially for mid-priced EVs.

—

4. Advantages for Individuals and Families

For everyday Australians, leasing an EV can offer:

Lower upfront costs
Predictable monthly expenses
Access to newer models every 2–4 years
Reduced concerns about battery life or resale value

It’s particularly appealing for city drivers who want a new, reliable EV but are wary of long-term ownership risks.

—

5. Business Leasing and Novated Lease Options

For businesses, EV leasing offers tax benefits and corporate sustainability points:

Lower fleet maintenance costs
Positive ESG reporting through emissions reduction
FBT-exempt novated leases to attract and retain staff
Easier fleet upgrades as tech improves

Leasing providers are also offering bundled EV solutions, including chargers, servicing, and carbon offset packages.

—

6. Key Players in Australia’s EV Leasing Market

Australia’s EV leasing landscape includes:

❖ Established leasing companies (e.g. SG Fleet, LeasePlan)
❖ Novated lease providers partnered with employers
❖ New subscription services like Carbar, AGL’s EV Subscription, and Blinker

Banks and dealerships are also entering the leasing space, sometimes bundling insurance, servicing, and charger installation into fixed-price plans.

—

7. Risks and Considerations Before Leasing

Before signing a lease, consider:

Mileage limits and penalties for exceeding them
Early termination fees
Inclusion of maintenance or insurance in the lease
Battery condition clauses and wear-and-tear standards

Read the fine print, especially if you plan to use the EV for long trips or rideshare purposes.

—

8. What the Future of EV Leasing Looks Like

With technology improving rapidly and the second-hand EV market still maturing, leasing is likely to grow as the preferred entry point for many Australians.

Expect:

More flexible leasing durations (e.g. 12-month or 24-month terms)
Enhanced employer-supported novated leasing programs
Bundled energy deals with rooftop solar or smart charging

As EVs go mainstream, leasing gives drivers the freedom to stay current without long-term lock-in.

—

9. Conclusion

EV leasing in Australia is on the rise—and for good reason. It lowers barriers to entry, aligns with fast-moving tech trends, and offers financial flexibility for individuals and businesses alike. With government incentives and growing provider options, now may be the perfect time to rethink how you “own” your next car.

—

EV leasing is gaining momentum in Australia. Discover the benefits, types, and risks of electric vehicle leasing for individuals and businesses in 2025.