Switching to an electric vehicle (EV) seems like an easy choice. The perks are hard to miss: a smoother ride, a smaller carbon footprint, lower ownership costs, and impressive energy efficiency. But the big question is, does it make sense to buy one?

If you're feeling torn between jumping into ownership or holding off, we’ve got another option for you: leasing an EV. In this article, we’ll show you how leasing can make the EV experience more accessible and flexible for Australian drivers, giving you a taste of the future without the long-term commitment.

Why Not Just Buy an EV?

One of the biggest roadblocks to owning an electric vehicle (EV) is the hefty upfront cost. With prices starting around $50,000, EVs are out of reach for many average consumers. While automakers are working to make EVs more affordable, they haven’t yet found a way to scale production and bring down costs. For now, EVs remain a luxury, accessible to only a select few.

You might be willing to overlook the high price if owning an EV was a smart long-term investment, but unfortunately, that’s not the case. EVs tend to lose value over time, rather than gain it. This is due to the rapidly evolving nature of the EV market—manufacturers are constantly rolling out new tech, better performance, faster charging, and longer ranges. Meanwhile, lawmakers are updating policies at lightning speed. As a result, the EV you purchase today could be outdated in just a couple of years, leaving you with a vehicle worth less than you paid for it.

While the total cost of ownership (TCO) of an EV is generally lower than that of a traditional gas-powered car, that’s only true if you stick to the warranty period. Once you’re outside of the warranty, replacing components like batteries, infotainment screens, and other specialized parts can get expensive quickly.

Novated EV Subscription: A Smarter Alternative?

Fortunately, the EV experience doesn't have to be limited to purchasing. Carbar’s novated EV subscription offers an opportunity to enjoy driving an electric vehicle without the headaches of ownership. Here's why a novated subscription makes EVs more affordable and accessible for a much broader range of drivers:

• Savings and Flexibility: The most obvious advantage of a novated subscription is its affordability. Instead of facing a hefty upfront payment, you’ll only need to make monthly payments throughout your subscription. These payments will be lower than the instalments required for a purchased vehicle, and you’ll even have the flexibility to switch to newer models when your contract allows.
• Dodge depreciating value: Unlike an EV owner, you won’t find yourself saddled with a car with obsolete, out-of-date technology. Simply give 2 weeks notice and upgrade to newer models with greater range, faster charging, cutting-edge features and enhanced performance. 
• Profit or own, if you’d like: What if you’ve gotten attached to your EV after a few years? Should this end up being your situation, we have good news for you. You always have the option of purchasing your EV for the buyout cost. Afterwards, you have the option of either selling your new EV for some pocket money or giving it a permanent home. 
• Escape warranty limitations: An EV battery’s demise begins as soon as it is manufactured. If you’re prone to driving a lot, accelerating, or braking hard, you could also be hastening its inevitable end. The warranty for your battery is about 7-8 years, much longer than the length of a typical novated subscription, which is about 2-3 years. By the time your subscription is up, you won’t have to worry about footing an exorbitant, out-of-warranty bill for a battery or any other car part. 

Things to Know Before You Subscribe

The flexibility and savings that come with a novated EV subscription are hard to beat. However, it’s important to keep in mind that there are some limitations you should consider before committing. Here’s a rundown of what to expect:

• Mileage Caps: While we'd love to say you can drive as much as you want, most subscriptions do come with a mileage limit. That said, these caps are usually quite generous, giving you plenty of freedom to hit the road without worry.
• Other Restrictions: Mileage isn’t the only limitation to be aware of. Depending on your subscription, you may not be able to use the vehicle for ride-sharing services like Uber or rent it out to others. Be sure to check the terms for any additional restrictions.
• No Vehicle Modifications: Thinking about upgrading the speakers or adding some custom hubcaps? Unfortunately, you won’t be able to make any modifications to your vehicle. When your subscription ends, you'll need to return the car in its original condition—no extra features allowed.
• Employer Approval Required: Unlike a traditional car purchase, a novated EV subscription involves your employer. You’ll need their approval to set up payments through payroll, so make sure they’re on board before you move forward.

The Verdict:

Unless you’re someone who loves a good challenge and has the budget to match, buying an EV isn’t a decision to take lightly. The upfront costs and the risk of depreciation can make it a tough choice for many. For most Australians, a novated EV subscription is a fantastic way to dip your toes into the world of electric vehicles. It lets you test out your dream EV while keeping up with the latest tech and performance updates—without the stress of a rigid warranty period. Plus, you have the flexibility to either upgrade to a newer model or make it yours for good. With a novated subscription, you get the best of both worlds.