EV Finance: How To Save on Costs and Drive Green

Oct 28, 2025

The future is electric, want to be a part of the electrical vehicle revolution but not sure how?

Here's how EV finance can help you drive green while saving on overall costs.

WHy Evs Make Sense for Business

Electric vehicles are no longer just for early adopters. They now offer:

Lower operating costs due to reduced fuel and maintenance expenses.
Tax and government incentives at both state and federal levels.
Strong branding benefits, especially for eco-conscious customers.
Access to new vehicle technology, including advanced safety and telematics features.

The Business Case for EV Finance

Financing your EV rather than paying outright allows you to preserve working capital and take advantage of tailored tax benefits. Popular options include:

Chattel Mortgage - You own the EV from the outset, with the vehicle used as security. Eligable businesses can claim GST upfront and deduct depreciation and interest expenses.
Finance Lease - The lender retains ownership while your business leases the EV, with the option to purchase it at the end. Lease payments are generally tax-deductible.
Novated Lease (for employees or directors) - Bundling lease repayments and running costs into a salary package can delver tax savings for both employers and employees.

Government Incentives and Rebates

In Victoria and other states, EV adoption is supported through a range of incentives. As of the 2024-25 financial year, these include:

Fringe Benefits Tax (FBT) exemption for eligible zero and low emission vehicles under the luxury car tax threshold.
Stamp duty and registration discounts in several jurisdictions.

These incentives can significantly reduce the effective cost of refinancing an EV when comvined with the right finance structure.

Cost Savings Over Time

While EVs may have a higher upfront pprice, they deliver long term savings through:

Cheaper running costs (e.g., electricity vs petrol or diesel).
Lower servicing requirements (fewer moving parts).
Depreciation incentives for busiess-owned vehicles.

Financing helps spread these costs over time while allowing you to access these benefits from day one.