For small business owners and sole traders, economic predictions on what the rest of 2023 holds have been a touch unnerving. The cost of living is slowly creeping up across the board, energy prices are forecast to increase by up to 50 percent over the coming year, and rising inflation is tipped to be one of the biggest issues affecting small business in 2023.
All of these concerns definitely have business owners looking for ways to cut costs while still managing their businesses in a sustainable way - from a financial, environmental and social standpoint. Customers are continuing to choose businesses that embrace sustainable values, with a recent survey by Finder revealing that one in two Aussies actively seek out ‘greener’ products and services.
So are there ways to cut business costs, while also being ‘green’?
The Rise of Electric Vehicles
A great way to reduce business costs is to start to invest in electric vehicles instead of traditional ICE (internal combustion engine) vehicles. With the cost of an EV now being tax-deductible from July 2022, and electric vehicles delivering ample savings in the way of running costs, there are plenty of reasons to get into an EV in 2023 for your business. We’ve explored these in more detail here.
Electric vehicle sales in Australia are definitely gaining momentum, too - hitting nearly 10% of total market share in September 2022. All states and territories are offering a range of incentives and rebates to new EV owners for going green, and there are expected to be over 60 new EV models hitting our shoes by the end of the year - with charging infrastructure
From hot hatches to luxury SUVs, performance vehicles and even vans and utility vehicles, there’s set to be an EV for every business and budget.
The Financial Benefit of EVs
For business owners, EVs are fully tax-deductible as of last year, and also save a whole lot of cash when it comes to running costs - and with the price of fuel still rising, this is a tempting prospect. In November, the government also finalised a deal to exempt low- and zero- emissions vehicle leases from fringe benefits tax (FBT), resulting in major savings for buyers of up to $30,000. The scheme will run until April 1, 2025, and will include all plug-in electric and internal combustion engine hybrids.
Subscribing to an EV with carbar
There are plenty of ways to get into an EV - which you can read about in our exploration of the new Tesla 3. Here at carbar, our vehicle subscriptions are included in the new FBT exemption scheme, meaning that you (and your employees) can get into a new EV ASAP. Our carbar car subscription service offers the best of both worlds - similar to a lease, you can get into a new fully-maintained and comprehensively electric vehicle for a simple weekly subscription cost. There are minimum costs, but no minimum terms - meaning that with just two weeks notice, we can swap your car or stop your subscription at any time.
If you love your business’ new EV and want to own it, we also offer the option to purchase it when it works for you. You can also keep to smaller payments by switching to a loan arrangement thanks to our partnership with car loan comparison platform, CarClarity.
The best part is that you don’t even need to decide straight away. A car is a big commitment, so we allow our subscribers to switch to finance or buy it outright once they’re ready. Taking some time to try before you buy could save you and your business a lot of money, time and hassle in the long run.
We’re adding new cars to our fleet every week, with a number of electric and hybrid vehicles to choose from (and hundreds more) – whether you choose to subscribe, finance or buy.
The choice is always yours.
