Electric vehicles just got $$$ thousands cheaper for ordinary Australians | Auto Expert John Cadogan

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[@aron2199]

As a practicing accountant, I like stress to people that leasing company has inherent bias to get you into buying a new vehicle through salary sacrifice arrangement- think hard to see if an hybrid or electric vehicle is suitable to your needs and your travel habits… and most importantly ask if you really need that shiny Tesla in your driveway, especially if you still have mortgage- there is something fundamentally wrong with having to spent $ to save $ on so many levels

[@hectorshouse7348]

Everything is rented…you’ll own nothing and be happy…well the billionaires will be🤣

[@Robert-cu9bm]

@@frednurks8528 An EV or hybrid isn't a renewable.

[@hectorshouse7348]

@@frednurks8528 yeah but how else can you make millionaires into billionaires, but more importantly billionaires into trillionaires without a good scam 🤣

[@outbackozzie]

@@frednurks8528 Panels are rated at 25 odd years to still produce 80% of the original power, I see no problem here.

[@buncha5651]

@@outbackozzie Well that's what you are told when you are conned into them.

[@ZENbulldozer]

EV prices going up in response is a surety.

[@Pete856]

The cheap ones might, but here in NZ where EVs under 80K get a rebate of $8,650 many EVs got cheaper when this came in (the base models at least), no-one is going to buy an EV over 80K unless it's way over and you're rich.

[@Enforcer_WJDE]

Yeah . Government incentives are am incentive for dealers to up the price. Evs are too expensive.

[@petergaskin492]

If you increase demand greater than supply you usually end up with price increases. State government purchase rebates might restrict some price changes

[@itsbigal92]

Problem with novated leasing is the lease providers often enough will sting you an amount roughly equivalent in management fees and other charges to the savings. In effect you're swapping funding the government, who gives us roads, schools, hospitals, for funding a business who gives their shareholders money.

[@graemejohnson9025]

I have a technical Problem... after watching Donut Media. why is it so Hard to put a Tesla fire out? Check it out on youtube.. like when the Note 7 Failed, it had one battery, a Tesla has 1 thousand.. you are sitting on a Bomb.. Do I want to transport my Grandkids, with a Potential Exo Thermic Bomb under their feet..

[@lucasvyner1502]

@@graemejohnson9025already been discussed here mate, check john's vids on thermal runaway

[@MattBrownbill]

Yes, my company's does, which effectively removes the saving, such a shame.

[@MattBrownbill]

​@@graemejohnson9025is this relevant to salary sacrifice leasing?

[@tim9241]

Only if you don’t shop around. Do a self-managed lease and avoid the crappy extra fees, get to shop around for your own finance as well.

[@Zwank36]

Really solid advise, wishing I waited, I recently re-leased my BMW M140i. Reminder that leasing companies also cut thru dealership bullshit too. You usually get a very good deal on the sale price because dealerships are too scared to rock the gravy boat

[@Low760]

People spend $200 a week or more on a car when you earn 80k a year and have a mortgage!? Wow.

[@lunsmann]

Thats 10k a year - pre tax. Most people are double income these days. Not that I care, I'm not in that income bracket. Not even close.

[@waynehewett4017]

Plus groceries ,school fees , outings , clothes and everything else you have to buy As a family ? I think people need to get thier priorities in order Rather than buy a 70 to 140.shit box tesla Especially when you have a perfectly good car already in the driveway

[@xpusostomos]

Yes and no, people really value their cars in Australia

[@pablorages1241]

If you had intended to buy a car already .. then this is a bonus

[@alistairshanks5099]

I am retired now and never came close to earning 80 k a year or its equivalent over the years I worked but then again I never bought a new car ever either. That's not sour grapes talking that is just life, we can't all be on the same pay scale even though many of us should be higher than we were [ok so that last bit was sour grapes]. What I can say is that between my close family and friends which would cover about 20 vehicles I would say that 12 were bought new and I would say that 9 of those are either leased or tacked on to house mortgages. Being an X mechanic I know that a lot of people see owning a new car as being able to define transport costs over a set time frame while operating what should be a reliable vehicle. I suppose they see it as a type of risk management. To me, it just seems like you are renting a car and while that rent falls inside your sustainable budget then you are happy. One other thing though is before we all dive out and buy our new EVs you best be prepared for a long wait because of supply shortages in battery raw materials and at the rate that lithium is rising in cost if you have to wait for the car I think the price will change by the time it arrives. Australia will not be a favored market for EV manufacturers to send to because the USA and Europe will have more clout because they are much bigger markets.

[@richardkaz2336]

The possible spanner in the works is for anyone with a recent home loan facing recent and projected interest rate rises. For others the spanner is if you're a retiree with deminishing liquidity there are no intensives.

[@travishall1281]

Having been a Novated lease customer multiple times over the years, everyone needs to be careful and make sure it is right for you. Especially if you completely mismatch your usage, what you will say you’ll do and what you do. Also remember that costs such as servicing and insurance price hikes more tyres etc. I can assume that the charging component for the EV is included just like liquid fuel. The biggest issues are if you choose to leave your job or you are kade redundant then the costs are a lot to get out of the lease. Plus you have to keep the car for the period even if it’s no right for you. I have found for me that ditching the lease has suited me better. So bought a 10 yr old Prado with cash leftover from the Private sale of the Novated car

[@rmc489]

It doesn't cost you a lot to get out of the lease, you just take the finance over. I did it and still saved a bunch on the purchase cost and fleet discount that otherwise would have been unavailable to me.

[@Robert-cu9bm]

@@rmc489 That surely would depend on the company giving the lease. They all have different T&C

[@vladthe3rd414]

Need to watch out if you have HECS as well, cause could be paying more tax if you salary sacrifice

[@MusiGig]

I ran the numbers before … with few common ones.. the tax benefit at the end of lease is almost same or more than the balloon payment so you take in one hand and give in another, have not seen an exception to that yet

[@MattBrownbill]

Good point, be very careful! The scheme my company has, charges so much for insurance/maintenance etc, that it no longer seems like good deal. They are just taking your tax advantage for themselves. The insurance etc is not an option, you have to pay for it. 😔

[@madddevil1]

This has just made ev cars cheaper for the rich Australians ....your average Joe blow would rather sink the money on a cheap 4x4 and live the Aussie dream and escape the inner city

[@DragonHawk]

💯

[@RIPOFF65]

6 months ago I bought a 1993 Nissan Navara 4x4 diesel 2.7 with km 200,100 the clock,ac,power, steering,trayback with canopy and passed roadworthy + new tyres and rego for $3500 all up. How can this EV rebate beat that

[@DragonHawk]

@@RIPOFF65 Yeah I did the same sort of thing got an 2004 R50 pathfinder from NSW $3000 with roadworthy only because most people don’t know how good they are

[@flam.c6632]

Novated leasing does offer savings, in income tax, gst etc. With this legislation update, the FBT portion that we would pay would add to that saving. I got my second fully novated lease recently, things to note: 1)If you intend or happen to change jobs, make sure the new employer offers salary sacrifice/ novated leasing, otherwise a huge exit cost. 2) Lump sum payment after x years does add Gst on top. I just sold a car after 3 years of fully novated lease and made some profit (usually the lump sum figure would be lower than market price). 3) Novated leasing companies have higher purchase power, I got excellent price 3 years ago and ok price now. 4) Be careful to check the final payment amount, cause they won't disclose the interest and principal, their interest rate can be higher than dealers. 5) Your savings from car discount can be eaten up by the higher interest, however, there is no better deal than fully novated lease. I am not a financial adviser, so check with your company, friends and family, always calculate how much you will be out of pocket in total. I do check if the car I am buying is easy to sell, will there be potential buyers for example buying certain brands might be an issue if majority of people don't like them.

[@chikalukorkwati2179]

This is a whole load of crap. Please don't be deceived by this massive BS. If you were giving financial advice for a living you should be in jail. 'Sold for a profit' - utter rubbish

[@flam.c6632]

@@chikalukorkwati2179 What are you talking about? Be specific, what is that you contest about my statement, give me facts and references don't give me general BS, without stating why and how?

[@brianbourke8859]

Sort out your home charger and home electricity tariff. My offpeak rate is 12.6 cents per kWh between 10 pm and 7 am. If you plug your car into a standard power point when you get home. Set your charge from 10 pm to 7 am and set current to 10 amps. If your house voltage is 240 that is 2.4 kW. Over nine hours that is 21.6 kWh and $2.72 cost Model 3 usable battery 57.5kWh for 380 km approximately. So 21.6kw is approximately 142.7 km. So if your trip to work is 70 km each way your battery state of charge will the same as it was in the morning. If that is not quite enough a 15 amp circuit is 3.6 kW for 9 hours is 32.4 kWh is $4.08 32.4 kWh is approximately 214 km. For 107 km trip to work each way.

[@markh.6687]

$4.08 per day x 365 days = $1,489.20 per year electricity cost (for the long-term look).

[@jeffreystorer4966]

How about a bomb proof garage to park it in for overnight charging ,be a nice bit of piece of mind while you're having a kip

[@clubsportr08]

Handy if you are employed but for a redundant retiree then not much use.

[@retepd1e]

I chose novated lease because I drive a lot. About 40,000km a year. Since my fuel cost comes out of my pre-tax salary, it would make no sense financially to cough up $200 per week on fuel from my pocket. Also, with novated lease I get a brand new car every 5 year which gives me the peace of mind that it’s going to be more reliable than a second hand car.

[@Laz_Arus]

Fat load of use this legislation will be to retirees!

[@Fanta....]

Thats their own fault for being so retireded

[@aussieideasman8498]

I made a video on the inequity.

[@aceroadholder2185]

Always a good day when the well-off can make the poorer folks pay for the flashy new wheels.

[@hectorshouse7348]

Propping the most well off up is a privilege

[@sebastianmessina3285]

So we the people pay for the difference between overpriced EVs and regular cars for a select group.

[@tonysambar]

EV's are so good they need government subsidies.

[@markh.6687]

There was no way the EV would replace ICE without a subsidy; the EV cost is simply higher, and the used market isn't great either. Plus with battery rebuild/replacement costs inevitable and costing more than some used ICE vehicles, the gov't at least realized it has to do something to lower the tax cost of EV ownership.

[@Rob_D74]

Hi John, you really glossed over the residual (balloon), you have to pay in 5 years' time. That makes the cost more than $209 a week, significantly more for that Tesla.

[@hillclimber4154]

That was complicated. I just bought and Hyundai Ioniq 5 in NZ for $79990 and I will get a clean car rebate in 5 days of $8650 from the govt. That's it, job done.

[@axelknutt5065]

But that system sucks for the poor mugs that can’t afford an $80,000 i5 but they have to pay for your $8650 rebate through their taxes. The poor pay for the rich to buy a fancy car - hardly fair?

[@tonybennett638]

@@axelknutt5065 100% mate.

[@martinsmallwood9605]

@@axelknutt5065 The rebate is funded via a levy on high emitting cars. So its paid for by rich suckers buying land rovers and other overpriced gas guzzling tat .

[@hillclimber4154]

@@axelknutt5065 There are a heap of 10-12 k used hybrid Japers getting a minimum 1k rebate same with petrol VW Polos and Golfs.

[@philbrannigan5854]

One thing to think carefully about before salary-sacrificing a car is that it can work really well, unless you suddenly find yourself out of work for a while. Maybe you get made redundant or take maternity leave. Those lease payments still have to be paid, as well as all the running costs of the car. And without the tax benefits, you can suddenly find that your car costs are a major headache. If you ask someone how sure they are that they'll be in their current job for the next 12 months, a lot of people would make a reference to these uncertain times. If you take out a five-year lease you need to think five years into the future. Obviously, many people take a much bigger leap of faith when they take out a 25-year mortgage. But with a mortgage, those payments start hitting you in the face from month-one. You know what they are and they're front-of-mind when anything happens that might make you nervous about your job (for example, if you work for a large corporation that suffers a catastrophic data hack, resulting in customers running for the hills). Your mortgage will be quite near the top of the list of topics when you and your hubby are discussing starting a family. But when you salary-sacrifice a car, its costs become out-of-sight, out-of-mind very quickly. Your take-home pay reduces by an amount you've decided you're comfortable with, and you get used to living on the remainder that drops into your bank every pay-day. However, if you stop working halfway through your five-year commitment on the car, the lease payments and all the other costs of the car will be competing with your mortgage to see which can eat through your savings the fastest. You'll be looking out at that Tesla on the driveway, cursing all those security features that make it so hard to steal. My point is, if the changes to legislation tempt you to opt for a Tesla Model 3 instead of the Corolla Hybrid, or even if you're considering your first salary-sacrificed car, just do the sums and work out the monthly costs in a no-longer-employed scenario, before you make a decision. That way, at least you're going into it with your eyes open. And if you do go ahead, you’ll have planted that cost in your mind so that it, along with your mortgage, can do its job of terrifying you when you see your employer’s name plastered across the 6 o’clock news.

[@purplehazeffc]

Hey John. How about a top 10 EV video of which cars to look at. I’m right in the ballpark to start looking into this.

[@Invictus357]

As a 62 year old, I’ve never had a $60,000 or $80,000 dollar job ever. I could only have dreamt about being one of the average wage earners! And the majority of people can’t throw away $100 a week. So how is the government going to claw back this “wonderful” money give away?

[@awakenotwoke1973]

Didn't they contact you? No hip replacements for you.

[@Invictus357]

@@awakenotwoke1973 lol Bugger!

[@taxus750]

$80K a year? Tell him he's dreamin' son.

[@Low760]

Truck driver's clear 80k a year, maybe you should have been in union jobs?

[@hectorshouse7348]

The poorest will bankroll it one way or the other, but you knew that.

[@ChumpyChicken2]

Rather drive a potato!

[@LukeThomasPerth]

bought a standard Tesla Model 3 for the wife...after WA reabate, 68200....her last car was a passat alltrack diesel.. cost us 62K 6 years ago. Diesel price about 150-200 per fortnight. I have a 15KWH battery and solar. I now spend approximately 30bucks a month on electricity in summer and 80-90 in winter. Battery recharding the tesla via 15amp charger is essentially free at home as wife charges it during the day every day. She doesnt do more thant 50-60km a day. We use the Palisade for long trips. Overall pretty happy with how this hasworked out for us.

[@tomnewham1269]

But how much did the solar panels and battery cost? You also need to factor in the replacement cost as the panels and and battery doesn’t last indefinitely.

[@KaidenOZ]

maybe if the government didn't tax us up to half our income, we might not need to have some of that money dribbled back to us as "subsidies" to afford to purchase a new car.

[@premiumpatiofurniture7159]

Well said

[@seth1455]

what services would you like to cut or dispense with to facilitate tax cuts?

[@KaidenOZ]

@@seth1455 any and all should be up for chopping or reducing since we are circling the the edges of a major global recession. but for the sake of argument i am of the opinion that income taxes should be abolished, as it stands you are being taxed multiple times on the same $ you earn under our current system. reduce the size of government and let the people spend their money where they see fit, instead we have the government trying to get it hands on every cent we earn and trying to push the people along the path determined by our political class through the use of subsidies(bribes) with our own money.

[@markh.6687]

@@seth1455 That's the rub; do you want fewer schools, libraries, fire stations, health care...none of that is free.

[@jeremybean-hodges6397]

If you're breaking into the 48.5% bracket, you're earning at least 180k per year and I do not feel sorry for you.

[@geraldeaton9722]

Albo providing cut-price EVs for public servants.🤣

[@johno3456]

The negs of novated lease include a higher interest rate, around 11 to 12% against 6% for cheapest new car loans. Also, the provider collects an admin fee around $30 a month pretax. Also the residual is payable with GST so you don't truly save all GST at purchase, you defer about 50% of it. Also, rebated GST is limited to about 5.8k.

[@glentight]

Luxury car tax needs to be axed. The reason for it has disappeared.

[@77gravity]

Nah, keep it, the rich pricks paying it need to pay a greater share anyway.

[@jarlnieminen4307]

@@77gravity idiotic, it just keeps some cars from being competitively priced. That serves to reduce choice and increase prices for all.

[@andoletube]

@@jarlnieminen4307 I'm going to side with 77gravity here. Any car priced above $85k is a luxury car to me. Heck, for me, even a $40k might as well be a Rolls Royce in terms of how attainable it is. So I really cannot care if cars in that price bracket attract a luxury tax. Let 'em pay, I say. Just like those people would never consider my financial circumstances, there's no reason why I should consider theirs. It's basic self-interest at work. I would dispute that the luxury tax actually hurts anybody in a meaningful way. We're talking about wealthy people. 1st world problems. We have to get our tax base from somewhere.

[@ToasterCoasterAdventures]

@@77gravity you pay it on a 79 series land cruiser, its a piss take pure and simple, it also there to prevent plebs from being able to purchase their dream cars

[@lukebable]

@Jarl Nieminen . Here is a good idea. If you want the Governments tax base to increase, how about you get a higher paying job, or even start a business and increase your income and stop relying on other people to cover your shared Gov services !

[@russellmoore1533]

So as a self funded retiree I am not eligible for this deal?

[@bigbird232]

No unfortunately not.

[@russellmoore1533]

@@bigbird232 So it is a form of discrimination, as only certain people can access the benefits?

[@aussieideasman8498]

@@russellmoore1533 I made a video on it. Government always discriminates.

[@antone.henderson]

I don't pay GST anyway. And only 149 sleeps until my new Tucson arrives. Thanks for the enlightenment. Regards Tony

[@jayz4771]

John, another provision of this FBT exemption is that the vehicle has to be first licensed on or after 1 July 2022. Refer to schedule 1 schedule 7(2) of the bill. This also means that later on when people sell their EV, you could buy a second hand one and claim the other exemption. As long as it meets the above condition.

[@swedishbob_7315]

Which tax increase pays for this? Are there enough EVs available?

[@snookums01]

As John mentioned, if the employee leaves the company, the lease goes with them. However, a novated lease can be a problem if you get laid off. The leasing agents will drop you as their contractual agreement is with your employer, not you. You will end up with the loan to pay unless you can sell it to cover the loan. As it is an encumbered car, this makes it a bit harder. This happened to me when my company downsized and felt they could survive without me. Fortunately I was able to find anther job quickly but it could have been a problem if I couldn't find another job in time as I still had to make the loan repayments to the bank or sell the car, hoping to get enough to pay it off.

[@rw-xf4cb]

I had a novated lease back when tax rate was 49.9% for over $60K and price of fuel was 79c/L as I bought a petrol guzzling discovery I factored my fuel costs in the package as if it were close to a dollar. Them were the days....

[@johnhurley6333]

KZbin just ran an advert for your favourite Nissan Qashqai….the e-power one before your segment. Lol

[@giddyurp]

The cheapest (and most environmentally friendly) car is the one you already own. If it doesn't need replacing, don't. You can't buy more to save money, you can't consume more to save the environment. But then john's mates won't make money off of you. What John failed to mention and all the novated lease companies hide is the interest rate on the lease. Yes, you don't pay gst, instead you pay an interest rate on the lease.

[@TheWombat2012]

I only recently took my 1982 Celica off the road (to put it on club rego) after buying a new Mustang. Keeping a well maintained old car like the Celica on the road for forty years instead of buying a new one every few years is REAL environmental responsibility.

[@andrewsmith918]

Not the whole story. Novated lease also incurs monthly fees, sometimes $100s per month for admin and ‘service management’. But, equally, how do you suggest people should be transported? If we all drove 10/20/30/40 year old motor cars the sky would still be brown from their filthy exhaust fumes, there would be a higher body count (because they are quantifiably less safe), and you couldn’t buy a car because attrition would have consumed them all. There are other benefits to the replacement of old cars with these exempted plug in vehicles- the fuel for the electric car is NOT imported, so your transportation dollar doesn’t go to Singapore, etc. The FBT exempt vehicle need not be acquired on a novated lease, it can be purchased and depreciated, as a business expense according to the AASB and taxation rules- inclusive of any interest expense.

[@jasonrobards7695]

Practically no charging infrastructure- way tooo early to buy ATM.

[@guringai]

Have you got a Powerpoint at your home?

[@kerrybarnes7289]

@@guringai he probably does smart arse, but not 1500k from home

[@guringai]

@@kerrybarnes7289 . Noting that Sky News viewers watch also watch this channel, I get a bit cheesed off with the rampant negativity & scepticism. My point is that on reality it isn't as hard to find a charge as it's made out to be.

[@pablorages1241]

... maybe temporarily ... at current prices people have been buying every EV presented for sale ... dealers will just increase prices back to what the market will bear !

[@rhynoceros3247]

Just for clarity you do pay GST on the residual.

[@AndyM...]

Why can't they apply this to people that DONT want (or can't) lease, I'm self-employed and feel it's a bit discriminatory for the benefits to go to leasers only, this should apply to all that would like to enter the EV world !!!

[@markh.6687]

If you are in some form of incorporated business (or limited liability company), you may be eligible. Consult your tax advisor or accountant (not just a bookkeeper).

[@jaredscott4829]

Self-employed is an ever better deal than leasing. Use the car for work and keep a logbook, claim that much of ever single expense the car incurs each year. Includes non-cash depreciation too.

[@ankur313]

So, $208/wk for 5 years = $54000 + $17554 Residual amount after the 5 years. Even if you sold the car after 5 years to cover the residual, thats not a great deal for so much effort !! You will be better off buying with your own money and end up paying less over the life of the car !!

[@markh.6687]

But you have to factor in the effect of the pre-tax difference. That $208 a week is pre-tax, so your tax load per week per paycheck also decreases. Over 5 years it is likely a significant tax reduction. And what effort do you speak of? You decide what car you want, call the leasing company, they do the paperwork and shop for the best vehicle price for you; no dealer haggles hassles, you sign, you drive.

[@davelloyd-]

If you're in the 32.5% tax bracket then that 54k actually costs you $36,774. It's $208 before tax dollars which is $140 in your take home pay.

[@jaredscott4829]

They wanted to dump to PHEV element because in practice people don't use them as plug-ins in these cases. If you have a shiny fuel card you are going to use that, rather than plug it in at home and pay the extra electricity bill.

[@SunRise-ul7ko]

Take $10 dollars out of one hand & give back $1 in the other hand. Taxation is theft.

[@Thatguy-cb4qs]

Don’t know if taxation is theft but I do wish Aldo and Scomo/Dutto would pay for their own f’n Submarines.

[@grumpy-g5s]

lol staggering cost of the vehicle, plus the lack of kilometers per charge, lack of charging points, and adding extra time per trip, if i go to Sydney which is a regular trip for me of around 700 kilometers return, on average a good 7.50-hour travel time now i have to add charging time if i find a charge point that's not damaged or vandalized or just plain faulty , those of us who don't or can't ever buy a new vehicle makes this is another pointless government gift 🙂.I have had great jobs all my life never earnt more than $60,000 pa and i only managed to buy 1 new car in 40 years and will never be able to again unless i win lotto and there are millions of Australians in the same situation.

[@TheInvoice123]

I'm hanging around till the Crematorium goes all electric, or is the rug being pulled on that Co2 emitter also? Maybe the Gubberment could give me Carbon Credits towards burial costs, or I'm not going!

[@diracflux]

All that protein will be put to good use.

[@123hoffie]

Look into composting, maybe a better option for you 😉

[@coweatsman]

My residential arrangement of living in a block of townhouse units and my use of any car in occasional outback travel rules out any EV car purchase and there is no way I can garage 2 cars even if the electric cabling work could be done. Not happening.

[@FartOnMePlz]

Seeing new ev ads on the tele, still don't think it's a good time to buy one.

[@markcraigie3225]

I can see a lot of people not doing the maths on this and getting themselves into trouble by not meeting the specifications of their lease agreement… not to mention the question of value at the end of the lease period vs market value of the car at that time. Everyone keeps predicting these massive leaps in battery technology so what going to happen to the value of your lithium batteries car if solid state, grapheme or some other tech actually does make it into the main stream market.

[@buncha5651]

When they sell an EV capable of driving Gold Coast to Sydney without recharging , as i do in my VW Touareg at 6.1 litres per 100km, and price is comparable I'll consider one.

[@PradoKakadu]

My Model Y can manage 435km. If you drove that & had a 20 to 30-minute break at a Supercharger would that be the end of the world?

[@TheInvoice123]

Road tax is coming

[@hectorshouse7348]

There’s a reason why you bin your cellphone after 2 years…the battery is knackered 🤪

[@grumpy-g5s]

yes and look at the cheap replacement batteries you get the phone power is depleted after a few hours nothing like the original, the cars will be the same with its cheap replacements lol around $10-$15 g 🙂and faster depletion

[@hectorshouse7348]

@@grumpy-g5s Yep

[@seadoomania]

Ev owners are doing something positive for the environment and travelling overseas first class just for a good meal 😂

[@markh.6687]

@@grumpy-g5s I've used replacement cellphone batteries that had excellent service life; read the reviews on Amazon if you have doubts about some of the generic replacements. I also had a manufacturer's battery on a cordless string trimmer that was awful and not worth replacing with another name brand battery; had to junk the trimmer anyway after the adjusting collar jammed so hard even a pipe wrench/spanner wouldn't turn it.

[@triks911]

Battery and Drive Unit Limited Warranty The Battery and Drive Unit in your vehicle are covered for a period of: Model S Model X 8 years or 240,000 km, whichever comes first, with minimum 70% retention of Battery capacity over the warranty period. Model 3 Rear-Wheel Drive Model Y Rear-Wheel Drive 8 years or 160,000 km, whichever comes first, with minimum 70% retention of Battery capacity over the warranty period. Model 3 Long Range Model 3 Performance Model Y Performance 8 years or 192,000 km, whichever comes first, with minimum 70% retention of Battery capacity over the warranty period. These warranties cover the repair or replacement necessary to correct defects in the materials or workmanship of any parts manufactured or supplied by Tesla, which occur under normal use. For further details, please review the New Vehicle Limited Warranty. This summary applies only to vehicles purchased directly from Tesla on or after the date listed on the New Vehicle Limited Warranty; any Tesla vehicles purchased prior to that date are subject to the applicable New Vehicle Limited Warranty effective as of the date of purchase of such vehicle directly from Tesla. You can find your applicable New Vehicle Limited Warranty in your Tesla Account.

[@johncarmen9963]

I reckon there should be a scheme that lets you pay off an EV per KM, for example you could get say an MG ZS EV for $0 upfront and pay 50c per Km for 100,000kms to end up Paying 50k overall and owing the car outright, EV’s are around 50c per Km cheaper to run so basically you’re paying it off with interest but only having the same expenses as before and without an upfront cost, and you only pay it off as fast as as often as you use your car and would have had those expenses anyway.

[@chrisa4853]

Talk about making it it complex and limitiing the ability to get into a EV/BEV/Hybrid. In the South Pacific Socialist Republic, the Ardern lead govt introduced rebates on car purchases, up to $8625 rebate on a pure EV under 80k. There are various lessor reductions on hybrids etc. Everyone, yes everyone (who can afford a car) can access the rebate. On the flip side, ICE engine vehicles have additional fees added to the car sale price dependant on emissions levels. This rebate, not only applies to new vehicles, but also second hand imported vehicles. Seems on the face of it to be a much more simple solution.

[@ohdearearthlings1879]

Queensland Teslas run super well on coal, which we have plenty of. This means that we do not need to import oil and petrol so much. Two turns of a wind turbine's blades will charge a Tesla. My wife's basic Model 3 leaves turbo Falcons in its dust. Solar panels work well in Queensland. The last Falcon lasted her 20 years and will do service, as paddock car next year. Teslas have an aluminum body, so unlike the Ford, it will not rust out. I am looking forward to the P Platers getting into second hand Teslas. Those tuned twin exhaust pipes are so bloody annoying. Not breathing in exhaust fumes, will give us all a health boost. Hybrids are just two sets of maintenance. Straight e.v.s need very little love.

[@Helloworldwrjfjrjrj]

Very important. Not sure this was said. Key to remember is if you break a novated lease early you still have to pay ALL the interest for original loan period. Very important. Not many people say this.

[@bobbrown8661]

The only downside I can see to this is the car manufacturers pumping up their prices in light of this legislation change... :(

[@markh.6687]

The leasing companies may keep the dealers in check; leasing companies know what the actual vehicle cost should be, instead of the run-up of fake fees and add-ons priced to individual customers.

[@shanea9613]

I was about to pull the trigger on a novated lease until I received the contract. The lease company was being paid by the financer a $4,500 fee for me using their finance company. I would be paying the $4,500 fee over the course of the lease and I was unable to source my own finance, so I withdrew from signing the lease. Plenty of hidden fees with the novated lease so be sure to read the contract. Was cheaper for me over the life of the lease 5 years 15k km a year) to source my own and pay all costs myself.

[@jeremybean-hodges6397]

Yes, this is the issue I have with novated leases too.

[@jaredscott4829]

Plenty of leasing companies allow you to source your own financing.

[@shanea9613]

@@jaredscott4829 mine wouldn't. It was through work and I work not for profit and we were stuck with the one company.

[@jaredscott4829]

@@shanea9613 that sucks, but it's beside the point. They are also easy to change.

[@shanea9613]

@@jaredscott4829 I had a good look into it. My brother is an account, he ran the numbers and it wasn't worth it, as in would be more expensive if I were to keep the vehicle. Maybe worth it for some people. Not for me. They had a few fees for nothing as well which they wouldn't negotiate on. That was with NLC.

[@paulround4691]

Shit box Renault/ Dacia EV is available in Europe with a 140 km range at 14,000€ ,however not in Strailia!

[@shutthegate8232]

helps the wealthy teal flogs and people that are happy with children mining cobalt etc overseas.

[@theairstig9164]

There’s cobalt in the electronics of your mobile phone, laptop, ICE car engine computer. Also in the computers your banking system runs on. Go on. Virtue Signal these too

[@pjmck5987]

The petroleum industry uses a lot of cobalt, do you have a problem with that?

[@guringai]

Well I guess you're pretty happy about supporting all the oil drilling despots exploiting slaves & causing environmental destruction in the Congo Delta, Nigeria, Venezuela and many more places. And of course you don't have any electronics at all which have all got cobalt. Anyway, not all electric cars have cobalt in them, such as all of the Tesla's from China and many more other cars.

[@Big_Yin]

@@pjmck5987 you do realise the lithium battery industry uses petroleum to mine such minerals 🤣

[@TheMelbournelad]

I’m a brown voter that want the essential minerals mined and processed here and I care quite a bit about this. As I’m pretty borderline on my finances.

[@alexgallacher5720]

G'day John, It would seem that the Government, in its rush to convert us to EV's has omitted to factor in the loss of revenue. With excise and GST of around $0.47per litre for petrol, and their target of EV's being 50% of the total car sales, plus the incentives you mention, must mean a bit of a black hole in the budget in years to come? And higher taxes somewhere else to cover the shortfall.

[@petergaskin492]

The target is 89% of new vehicle sales being evs by 2030 and 15% of fleet being evs

[@philgray1023]

Even King Cnut would not try to hold back the incoming tide of EVs. You've probably heard that the major players are stopping sales of internal combustion engines forever. Eventually car mechanics will go the way of Hames manufacturers and Cobb and Co wagon repairmen. Diesel vehicles are virtually extinct in Amsterdam and no new taxi operating there will have an internal combustion engine. Lots of vehicles are just banned from several cities in Europe. Government revenue, well that's going to keep coming in as long as we have a government. Regardless of who is in, they are an adaptable bunch. They ain't going to wake up in 2030 and say, heck we got no money. I guess we'll never make an EV here. I mean we even imported those high tech devices called stage coaches for Cobb and Co. I used to laugh at the stupid idea that a machine could do my job. What, a robot hold a paint brush to paint road maps. No way.

[@alexgallacher5720]

@@philgray1023 Dream on Phil. There's not enough lithium available, or planned to be mined to meet your projected and optomistic fantasies.

[@michelswerissen6544]

Over priced rolling batteries, that become boat anchors in 8 years.

[@nobody6056]

8 years? If you're lucky. The battery degrades over time, in 4 years your range would be half what the sticker says when new, which is already pumped up...

[@kimchristensen2175]

Bit of a pet peeve of mine: Car leases and loans have gone from being quoted as a monthly sum, to biweekly, and finally weekly in a lame attempt to hide the increasing costs. It's like pricing an item at $2.99 instead of $3.00. Are people really that stupid?

[@ozitraveller4X4]

So did I hear in this story that this Labor government and pocock have agreed to subsidise the buying of an EV by lowering the FBT? Just so an EV is cheaper. The FBT has been a ripoff for years. So change FBT when it suits I suppose. That discount should cover all vehicles dearest to the cheapest it’s our money not the governments. Also be very careful with a novated lease and salary sacrificing. It does not suit everyone. Check your numbers & costs.

[@Witchdoctorz]

Am I missing something here? $208 a week is $10,816 a year for 5 years, a model 3 on a loan at 5% is around $15,400 a year. Lets say rego, insurance and charging costs $3,400 a year you are looking at a cost difference between the two of around $39,500... So you are basically betting that your model 3 will be worth LESS then $39,500 for it to be worth it. This could be the case but it should be so darn close that I don't really see this being a deal?

[@grumpy-g5s]

and the true cost of charging is yet to faced ,lost fuel tax money will need to be recouped , the charge stations will be demanding credit cards and they will the same signs out front as the servo,s do now with the prices on them its going to be fun to watch especially on a user pay system

[@Witchdoctorz]

@@grumpy-g5s true but we already have an EV tax in Victoria with it in the pipeline in other states. Solar can basically offsets the electrical cost until you are basically paying nothing . All this being said you still have to be fairly well off before EVs are worth while

[@lucyenzed102]

There’s a large balloon payment at the end . You either trade it in or pay it out… so you don’t own and have a debt at the end…yay.

[@jaredscott4829]

@@grumpy-g5s The trues cost of charging? Spoken like someone with out a shred of experience. The true cost is borne at home, DCFC use is a rarity and the cost is for convenience. The vast majority of them are user pays now anyway, so I don't get what you are on about. Fuel excise is less than 2% of tax revenue - by the time you account for a circular economy nothing is actually lost because the savings on the population are spent elsewhere. You also save on healthcare costs and improve net import accounts. There is also a defence consideration - not being beholden to Singapore for fuel security...

[@CrapToCream]

So I took the plunge, my wife is now the proud owner of an MG EV, I was made redundant and at the same time retired, so the novated lease option isn't the go. And after reading some of the other responses I've never owned a vehicle for five years straight and typically done all my own servicing and repairs so I'm not sure how I would go with the five-year option and the whole lease thing. Anywho, my wife and I took the MG out for a FREE charge at Maccas this afternoon, had lunch and a nice chat, went for a bit of a walk, an hour and a bit later on charging cost nothing meal cost $25 so I'm not too sure about the economics here. Must admit, much the same as my wife very impressed with the MG. Thank you for the advice leading up to the purchase John you were "bang on".

[@Fanta....]

Congrats on your new Chinesium purchase. Emperor Xi will be most pleased he found a new sucker.

[@CrapToCream]

@@Fanta.... Thank you for your comment.. Just FYI I support the country I'm proud to live in and have done since I arrived 30 odd years ago, mainly in the shape of various taxes, I've just donated around $2.5k in stamp duty for the pleasure of owning some chinesium, none of that went to Emperor Xi either :).

[@triks911]

@@Fanta.... I try not to buy Chinese but seriously the war is lost.

[@thebestrcrepro]

Thanks for doing this video John. Really appreciate it.

[@sticustom]

Still won’t buy one.

[@daintree2455]

Great decision mate stick to Suby STI and/or 1911.

[@sticustom]

@@daintree2455 2011 😂

[@santosvandary7116]

Thanks, John. Awesome content. Like the way you explain. Very Informative. Cheers!

[@petergaskin492]

Only if your employer will participate in a novated lease. Sting in the tail - employer does not pay fbt but you are given a reportable fringe benefit amount on your payment summary

[@awakenotwoke1973]

Sounds like another method of getting people into indentured servitude.

[@james_l4337]

Some say there's also a principle & interest (4% to 6%) in the lease IMHO Don't think paying interest is a great idea ; better save then buy cars without interest

[@jaredscott4829]

So what?

[@awakenotwoke1973]

@@jaredscott4829 If you don't care, jog on.

[@jaredscott4829]

@@awakenotwoke1973 I'm asking what the FB included in the payment summary is supposed to mean. He has implied its a negative, but provided no reasoning. I understand you can't answer it because of that brain defect, so quit projecting.

[@brucetreloar3200]

So the government is kindly using MY tax dollars to subsidise an EV that will still be too expensive for most folks. So where does that leave us "common" folk who can't afford any new car?

[@PradoKakadu]

I'd been sitting on the fence for over 5 years until 2 weeks ago. I just took delivery of my 2022 Tesla Model Y Rwd after only a 2 month wait in Perth W.A mainly due to the EV FBT Legislation that I'm very relieved finally has passed in the senate. The tax savings are actually a lot more than most people realise. The Model Y Rwd has phenomenal performance, technology & safety with the ability to charge at up to 11kw on AC or 7kw on my Ocular charger I installed at home. I also have 20 solar panels so don't get large electricity bills - my latest bill was only $25. I haven't yet visited a Tesla Supercharger however that was one of the reasons I chose to order a Tesla along with the fact you could actually order one - unlike a lot of the competition. I previously owned a 2014 Outlander Phev for 4 years starting in 2015 & just sold a 2020 model with slightly larger 13.8kwh battery that I'd had for 1.5 years for only $1000 less than price I paid. They are great cars however after 5 years of Phev ownership am stoked to go fully electric & quickly realised the Model Y is lightyears ahead. The worst thing in my opinion about the Outlander Phev is the very slow AC charging speed of 3.7kw that I'm surprised hasn't improved in this latest model even though the battery is 20kwh. You can use a DC ChadeMo fast charger (if you can find one) however it will only charge to 80% which only used to provide a little over 30km of EV range which was very frustrating & not worth the effort or 25 minutes of your time. Having over 400km of range now without having to use expensive fuel ever again along with the fact I regularly charge for free at my local shops & even some beach carparks is a great feeling. I think Mitsubishi should see how popular the Model Y, EV6 & Ioniq5 are in Australia lately & decide to bring out a full BEV version of the Outlander instead of dragging their knuckles for decades like Toyota has done.

[@diracflux]

Is Victoria sticking with the distance tax and charging owners for all interstate driving?

[@petergaskin492]

Victoria increased the tax. Will only go if high court rules against the tax. Then it will be charged federally

[@seadoomania]

Dan will dictate also where and who can drive to

[@kippen64]

Can imagine this being very useful to a lot of people.

[@798Jinx]

It'll take a few years but after the lease period (often 3 years) these cars enter the used car market. This is when more people benefit.

[@rodsmyth]

The devil is always in the details. Over my career I had a number of "company cars" from a number of employers. The best deal was when I was working for local government in Melbourne. Apparently the Constitution did not allow one level of government to tax another so my employer could purchase a new car and not pay any sales tax. They provided the car to me for 2 years and then sold it on the used car market for what they had paid for it. Sweet deal and when I left that employer they kept the car and I did not have to worry about having to take over any payments. Supply of EV's in Australia is a big problem so if someone wanted, say a Tesla, could the leasing company actually get their hands on one in a short timeframe?

[@theophilusthistler5885]

I'd go electric if it was a light 3 door hatch like a smart car if Ford Ka that has an 80km range for under $23k

[@russellhammond4373]

Thanks for doing all the hard work on this topic.

[@davidbarnsley8486]

I put green stickers on my Ute to green up my business image That works doesn’t it

[@markh.6687]

If people believe it, it works.

[@1991tejas]

This is the video I was looking for. Everything so well explained and covers all my questions. Thanks for this ❤️

[@peterhall4086]

Still overpriced for the ordinary Australian. Considering that most Australians are in casual or part time employment, and don't get fringe benefits. So, most people are not eligible.

[@nobody6056]

It’s a deal designed for Public Servants.

[@M8YM8]

I was hesitant to get an EV when I arranged my Novated Lease. Mainly because I could package fuel cards but not the increase to my electricity bill.

[@johncarmen9963]

Yep that’s one factor that people often overlook, if you salary package a fuel car it covers all running costs, if you package an EV, yes you get FBT exemption but you have to pay to charge it out of pocket.

[@guringai]

300 km per week is barely noticeable on a bill when charged from rooftop solar or on cheap daytime electricity rates. Certainly far cheaper than liquid fuel.

[@crazyg74]

@@guringai sure, but you can't 'package' the cost of solar and (especially) battery installation, required to charge your car at night.

[@guringai]

@@crazyg74 . EVs don't normally need to be charged at night, with an average commute of 30 - 40 ks/day. Weekend daytimes are ideal if at home, as electricity is far cheaper then than overnight (if on Amber Electric) Batteries are unnecessary, but solar is a no brainer investment wise for the house, aside from the benefits of charging an ev

[@phprofYT]

"Fringe benefits tax" ... what in the actual hell? By the way, how is the government of Australia making up the drop in tax revenue? Remember, governments never shrink themselves. They always protect their excuse to exist plus expand as much as possible.

[@krishnam1]

More soaking of the other road users to fund the Green lobby hobby horse. $6,000 has got to come from somewhere. Where do you think that is?

[@fnqadv1162]

Encouraging more consumer debt, Yesssss! Just how we make Australia less shit. Especially with suggestions like the 'shitbox' Nissan Leaf, 'unproven' MG or 'unknown' BYD, what could possibly go wrong? Maybe even treat yourself to the cheapest model offered by Electric Jesus.

[@stusue9733]

So when we are trying to "save the plant" and given the cars aren't built in AU, why are we encouraging the purchase of new cars at all?

[@Dave-gg6vl]

John have to say this is the only video of yours whereI have watched the entire thing. Previous videos of yours I couldn't stand the way you say / emphasise certain words - to me it just comes off as irritating after the first / 2nd time. But this video was good, you didn't over do it and provided good solid information. Please continue this way of presenting.

[@CharlesOwenVALUEOFEVERYTHING]

Land Cruiser 70 series only

[@richardsmith579]

Excellent for relatively well off people.

[@brycedubois3023]

What will be interesting is how this significant FBT saving will impact ute sales. I'm betting a bunch of folk have leased a ute as a family hauler, due to it being FBT free under a novated lease. Given a EV might be a nicer thing haul the family (and you have no plans to go to Dingo Piss Creek...), their next vehicle, may well be an EV. Make sense?

[@ianmcleod8898]

Reading most of the comments, people in this financial climate of trying to get by, putting another cost on top of what they already have is a firm NO! White collar workers please subscribe. The real worker with grit under the finger nails doesn't want or need another noose around their neck.

[@idea2outcome]

You'd be nuts to buy an ICE vehicle now!

[@nobody6056]

Did you forget the /sarc tag?

[@davidallenmoneystories]

Thanks for this video. I was wondering about this exact question!

[@rosswonderley4794]

One thing to be wary of, is the likely resale of the car that you choose. A car with a poor resale value might leave you with additional expense at the end of the lease if you can't sell it for more than is owed.

[@John-wz8oe]

I guess the government could have saved the local car industry if they had have wavered the FBT on all Australian built vehicles.

[@noisynobody]

I can see this benefiting small businesses and their directors too. Using a vehicle for private purposes when registered in the name of a company will usually trigger FBT issues. But if the vehicle in question is an EV, then the annoying "employee contribution to motor vehicle" EOY journal entries I have to do as an accountant will become a thing of the past.

[@Robert-cu9bm]

You have to declare private usage and that isn't tax deductible. If you said it was solely for work and had an accident while using it privately insurance wouldn't pay out.

[@noisynobody]

@@Robert-cu9bm I'm talking about the case where a completely separate entity owns the car. The director (an employee of the company in effect) derives a fringe benefit whenever they use the car privately and the company keeps on claiming 100% of expenses. The company can either lodge a FBT return and pay any applicable taxes, or the director/employee can pay back to the company an amount equal to the taxable value of the car. The point is if an EV becomes FBT exempt the director/employee can drive it all around the country as many times as they like with zero FBT consequences. That is, until the ATO ruin the fun with div 7A.

[@markh.6687]

@@Robert-cu9bm Couldn't the business just get an umbrella policy (or whatever term they use in 'Straya to allow for unlimited use whether business or private)?

[@petergaskin492]

As an accountant you still have to calculate a reportable fringe benefit and this is added to the employees payment summary. So you still need to do fringe benefit calculations. The fringe benefit is just not added to the cost of the novated lease

[@tundramanq]

I always look at the total cost of ownership. A plug-in hybrid gives you the flexibility to choose mostly gas or electric. As more electrics get on the grid, the cost of electricity is going to sky rocket. Then your most economical retail cost solution will need to be re calculated between gas and electric.

[@bradhashimoto2372]

Informative but do you have to tap the paper on the desk every minute?

[@gerardwilliams2805]

It’s a game changer for sure. Only cost that can’t be packaged, is the electricity, but given its 20%dollar for dollar, it ain’t gonna matter to most people. Volvo has cars available today.

[@scotty9946]

Yep we got a novated lease with LeaseLab for a Model Y RWD with Enhanced Autopilot

[@jeremybean-hodges6397]

Novated leases have to be one of the greasiest financial products I have seen. The sums and how they are calculated are just so hideously opaque. If I purchase a home loan, or health insurance, it's easy to see how the cost is calculated and what's incorporated. In particular, the interest rates on the finance are quite hidden - and there's every effort to obscure all the assumptions in their calculations. My advice is, particularly if you have most or all of the purchase price of the car saved up, be very careful to get out your Excel sheets and sum up your costs very, very, very carefully.

[@markh.6687]

I'm curious what sort of increase in BEV electrical load the 'Strayan grid will be expected to absorb at a minimum if this program takes off.