Ouch, those petrol prices…. I don’t even want to talk about how much I just paid on the weekend to fill up.

So, it’ll come as no surprise that many of my clients are starting to rethink how they get around. For some, that means taking a closer look at electric vehicles (EVs). While the upfront cost can feel like a hurdle, the combination of lower running costs and smart financing options is making EVs more accessible than many people expect.

If you’ve only just started thinking about making the switch, you’re not alone, and the good news is there are several ways to approach the purchase.

Electric vehicles typically cost more upfront than their petrol equivalents, but they can be cheaper to run over time. With fewer moving parts, servicing costs are often lower, and charging at home is generally more affordable than filling up at the bowser. That’s why many buyers focus less on the sticker price and more on how to structure the purchase in a way that works for their cash flow.

Standard car loan

One of the simplest options is a standard car loan. This works much like any other vehicle finance. You borrow the funds, make regular repayments, and own the car outright at the end. Some lenders now offer “green” loans with slightly reduced interest rates for electric vehicles, which can help bring the cost down further.

Novated lease

Another increasingly popular option is a novated lease, particularly for salaried employees. This allows you to pay for the vehicle through your pre-tax income, often bundling in running costs like registration, insurance, and charging. What makes this especially attractive right now is the Fringe Benefits Tax (FBT) exemption available on eligible electric vehicles. In simple terms, this can translate into meaningful tax savings and lower effective repayments, making an EV far more affordable than many people expect.

Finance leases

For business owners or self-employed borrowers, there are also options such as chattel mortgages or finance leases. These structures may allow you to claim GST credits and potentially deduct interest and depreciation, depending on how the vehicle is used. It’s worth getting tailored advice here, as the right setup can make a significant difference over time.

Government incentives

You might also hear about government incentives. While these have changed over time, and are currently quite limited in Western Australia, the FBT exemption remains one of the most valuable benefits available. Rather than upfront rebates, the real advantage for many buyers now comes from structuring the purchase in a tax-effective way.

Getting good advice

An experienced finance broker can add real value here. We’ll help you look at the big picture and explain the options available to you. That includes comparing vehicle finance options, explaining how different structures work, and help you understand how a new loan, car or otherwise, fits into your overall financial position.

For example, if you’re already managing a mortgage, it’s important to consider how a car loan or lease might impact your borrowing capacity, cash flow, or future plans. A broker can help you look at the bigger picture, not just the interest rate on a single product.

Ultimately, the decision to move to an electric vehicle comes down to your personal circumstances and goals. But with fuel costs where they are, it’s a conversation more Australians are starting to have. If you’re curious about what it might look like for you, getting the right advice early can help you make a confident and informed decision.