Best EVs Under $40,000
Australian novated lease guide and comparison.
Last verified: 2025-07-01 | 2025-26 tax rates
Best EVs Under $40,000
4 budget-friendly EVs available on novated lease under $40,000.
| Car | Price | Range | Fortnightly | 3yr saving |
|---|---|---|---|---|
| BYD Dolphin | $35,888.00 | 427 km | $533.66 | $10,822.62 |
| GWM Ora | $35,990.00 | 420 km | $534.85 | $10,846.73 |
| MG ZS EV | $36,990.00 | 320 km | $546.50 | $11,083.09 |
| MG 4 EV | $38,990.00 | 450 km | $569.81 | $11,555.82 |
Most affordable EVs for salary sacrifice
The BYD Dolphin ($35,888.00), GWM Ora ($35,990.00), and MG ZS EV ($36,990.00) are the cheapest EVs you can get on a novated lease in Australia.
With fortnightly deductions under $534.97, these cars are accessible even on moderate salaries. All qualify for $0 FBT.
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Frequently Asked Questions
What is a novated lease?
A novated lease is a three-way agreement between you, your employer, and a finance company. Your employer deducts lease payments from your pre-tax salary, reducing your taxable income.
Are EVs FBT exempt on novated lease?
Yes, EVs and PHEVs under $91,387 are FBT exempt until 31 March 2027, making them significantly cheaper to salary sacrifice than petrol cars.
How much can I save with a novated lease?
Savings depend on your salary and car choice. On an $85K salary with a $45K EV, typical savings are $10,000-$15,000 over 3 years.
What happens at the end of a novated lease?
You can pay the residual value to own the car, refinance the residual, trade in and start a new lease, or hand the car back.
Can I salary sacrifice a used car?
Yes, most novated lease providers allow used cars, typically up to 7 years old at the end of the lease term. New cars generally offer better value due to GST savings.
Calculate Your Exact Savings
Use our novated lease calculator with your specific salary, car, and preferences.
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