Getting behind the wheel of an EV for 2022
As professionals in Electrics, Comms, and Data, we are all advocates for the transition from carbon-emitting petrol-driven vehicles to electric vehicle (EV) alternatives. Exciting advances in EV charging technology are coming online and government investment for EV charging stations is ramping up in every state and territory which bodes well for current and future EV owners.
If you’ve been clamouring to get behind the wheel of an EV, here’s how you can take advantage of incentives and green loans — and how to get one if you’re using it for a business.
Budgets, batteries, and charging locations
You need to think about your EV a bit more than a petrol-driven car — smaller and less expensive EVs have smaller battery packs which means shorter ranges. Do you drive on highways or in suburban areas? Suburban driving is more energy efficient and there’s likely more charging stations on offer than in regional or rural areas. A higher battery capacity may be a requirement depending on where you live, which is something you need to budget for. Many EV models sold in Australia have effective ranges of 400 km before requiring a recharge: however, this can have a higher upfront cost than cars with shorter comparable ranges.
Buying EVs for business
If you’re buying an EV for 50% or more business use, you can benefit from business-oriented car loans such as chattel mortgages. With a chattel mortgage, you don’t need to put down a deposit, and you may finance more than 100% of the purchase price to keep the transaction cash flow neutral. On your BAS statements, you may also deduct the interest, depreciation, and in some cases, the electricity you have used at your business as an expense.
Buying EVs as a consumer
Buying an EV as a consumer means you’ll have to get a consumer car loan. However, you could save on finance compared with petrol-driven cars. Have you heard about green car loans? Many car loan brokers have access to a large number of lenders and can help you get green car loans. Green car loans are an incentive to buy EVs; interest rate discounts are frequently available for zero emission cars, which can help you save money over the duration of the loan and possibly offset the high initial cost. It’s the best way to find a car loan with a competitive interest rate.
Green vehicle incentives
Prospective EV owners can take advantage of green vehicle incentives from the State and Federal governments; EV purchases under $84,916 are exempt from the Luxury Car Tax, for example. State and Territory governments may also be waiving or lowering registration fees; and offering concessions on stamp duty and other savings on on-road costs. The Green Vehicle Guide has more information on incentives here.
Though the EV market and infrastructure aren’t quite yet mature, there’s still a healthy case for going green ahead of the pack.
The facts provided here are broad in nature. Never forget to consult a financial adviser before obtaining financial products.
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