Best PHEV/EV Car Option around $60K for Novated Lease

AlextheMeertkat on 17/04/2023 - 20:45
Last edited 17/04/2023 - 21:34

I am in the tax bracket where it may be beneficial and recently started considering a novated lease offered by my employer for a new car. To be eligible for this, the car needs to be an EV or PHEV and below LCT (ideally around ~$60K), so my options are quite limited. After a lot of research and consideration, I have narrowed down my options to the following (they all cost more or less the same, apart from #4):

  1. Mitsubishi Eclipse Cross PHEV (Aspire or Exceed):
    Pros: 4WD (at no extra cost), 10-year warranty if serviced at a Mitsubishi dealership.
    Cons: No rear vents in 2023 and no lane keep assist in 2023 (unlike other cars on the list).

  2. Ford Escape PHEV:
    Pros: Comes with a spare wheel.
    Cons: No 360-degree camera and questionable resale value due to being a Ford.

  3. Tesla Model 3 RWD:
    Pros: Offers all the necessary safety and comfort features.
    Cons: Extremely low ground clearance.

  4. Combined option from Chinese manufacturers (MG ZS EV, BYD Atto 3, MG PHEV):
    Pros: Cheapest option.
    Cons: Concerns about quality/reliability and resale value due to being made in China.

My misso and I have been debating (politely speaking) which option to choose for days now, and we just can't seem to agree. We argue about the pros and cons of each car, and it's becoming quite frustrating.

We don't have any strong preferences when it comes to choosing between an EV or a PHEV. which one would you choose? I would love to hear your thoughts!
TIA

Update 1. Forgot to add the Hyundai Kona EV option but for some reasons (nothing is wrong with it), and it is probably the only point we both agree on, we dont consider it.

Poll Options

  • 17
    Mitsubishi Eclipse Cross PHEV (Aspire or Exceed)
  • 2
    Ford Escape PHEV
  • 27
    Tesla Model 3 RWD
  • 32
    Combined option from Chinese manufacturers (MG ZS EV, BYD Atto 3, MG PHEV)
  • 8
    Other Option
Automotive Electric Vehicle

Comments

  • NormalGoat on 17/04/2023 - 20:57
    +3

    Have you considered a Tesla Model Y? It appears to be elligible; however, you will need to up your budget to $70k
    https://www.novatedleaseaustralia.com.au/cars/tesla/model-y

    • brendanm on 17/04/2023 - 22:19
      +7

      Have you considered a Tesla Model Y?

      Op possibly has eyes. One of the ugliest cars around.

      • Lord Fart Bucket on 18/04/2023 - 09:14

        But, it's by Elon. Elon always creates beautiful things!

        /sarcasm

      • Lachy2437 on 18/04/2023 - 10:18

        I think it looks fine, even if I didn't I'm one of the people don't care too much about aesthetics of a car, it's just a tool for me.

        • brendanm on 18/04/2023 - 10:29
          +1

          I'm someone who generally doesn't care how cars look, but the model y is an exception. Looks like a Beluga whale had sex with a model 3, and this is the offspring.

          • Lachy2437 on 18/04/2023 - 14:52

            @brendanm: I'm picking up mine tomorrow. We wanted a new, safe car now we have a kid and it was the only EV that met our space needs. I'd also prefer it to be a bit uglier if it makes it more efficient which is the reason the silhouette is so much like a Gen 1 Prius.

      • JafferMoney on 18/04/2023 - 10:19

        In black, with black alloys it looks mint.

      • lachhelix on 18/04/2023 - 12:02

        I honestly think the Model 3 looks worse than the Model Y

  • MS Paint on 17/04/2023 - 20:57

    Outlander PHEV ES ZM?

    • AlextheMeertkat on 17/04/2023 - 21:20

      The ES spec doesn't even have a blind spot monitoring feature.

      • MS Paint on 17/04/2023 - 21:40
        +9

        Turn your head like you also should with the technology.

      • [Deactivated] on 18/04/2023 - 07:39

        Adjust your mirrors properly and you won't have a blindspot. It's the biggest myth in motoring.

        • CurlCurl on 18/04/2023 - 09:04
          +1

          Adjust your mirrors properly and you won't have a blindspot. It's the biggest myth in motoring.

          Pardon?

          • [Deactivated] on 18/04/2023 - 11:05
            +1

            @CurlCurl: Centre mirror to see directly back, right mirror to see the right lane and left mirror to see the left lane. Pretty simple.
            Most people have their side mirrors incorrectly adjusted to see their door or door handles which partially duplicates the image in the centre mirror.
            Something from a proud 'Murican
            and something from every OzB'ers favourite auto blogger

            • CurlCurl on 18/04/2023 - 11:36

              @[Deactivated]:

              Centre mirror to see directly back, right mirror to see the right lane and left mirror to see the left lane. Pretty simple.
              Most people have their side mirrors incorrectly adjusted to see their door or door handles which partially duplicates the image in the centre mirror.

              Sorry, I thought you meant it was a myth. Yep. Been doing that for eons.

              • [Deactivated] on 18/04/2023 - 12:19

                @CurlCurl: Thanks for being a responsible road user.

  • Zippy7 on 17/04/2023 - 21:14
    +1

    I was informed of this tax break last week and looked into this.
    I don't think there is much stock for any except the chinese cheapies.
    I'm likely to just buy a PHEV, and most likely contender is the MG ES +EV given there is availability.
    I went and had a quick test drive - it was okay (soft wobbly suspension after tackling a speed hump)
    Will be cheap to run and has a 7yr warranty.
    I'll be ditching my Kia Sportage at 5 years old, and likely to do the same with this car too.

    If a normal hybrid had the same tax break, I would probably go a Haval H6, but it doesn't, so I won't :)

    • AlextheMeertkat on 17/04/2023 - 21:26

      We also currently have a Sportage and it (from 2018) has rear vents and lane keep assist functionality, that pushes me back from the eclipse cross option.
      My quote from the NV company currently shows a 3-m waiting period for the Eclipse sport. Model 3 in white are available right now (at least it was the case a week ago).

      • Zippy7 on 11/05/2023 - 21:10

        @AlextheMeertkat - Did you end up getting a new car?
        Just curious to know where you landed at.

        For me, after test driving and having a closer look at the MG HS+ EV and some other cars.
        I ended up buying a Mazda CX5.
        I couldn't see the MG and Haval holding up over time. Their main user interface screen was my real concern - it felt like a 3 year old cheap android tablet, not enough ram or cpu power, and unlikely to get a decent software update anytime soon because they are too busy focusing on their next product! I owned a OnePlus phone in the past :)

        As an aside, after nearly 5 years, I got sick of the Kia dealer blaming the customer for anything that I raised or claiming there was no issue/was normal/we've reset it for you. There was an excuse for any and every issue I raised with them.
        I had a closer look at the Kia owner's manual - Kia Australia want you to exhaust all avenues with the dealer (including writing to the dealer principal) before you attempt to escalate any matter to them.
        I didn't know this before buying a Kia, and now that I do, I'm very very unlikely to buy another Kia or Hyundai.
        Most of the time you don't have any issues, but if you do, they don't want to stand behind their product.
        7 years might as well be 100 years if they don't back it.

        I've owned plenty of other brands in the past (Mazda, Ford, HSV, Audi, VW, Toyota) - and never experienced such bad attitude from 2 different Kia dealerships.

        Of course, YMMV, and there will be plenty of fanbois out there.

  • dasher86 on 17/04/2023 - 21:15
    +3

    I thought you were the one to compare the market…

    How long do you plan on novating for?

    • AlextheMeertkat on 17/04/2023 - 21:18

      36 months

      • dasher86 on 17/04/2023 - 21:49

        Try go for 37 if you plan to keep the vehicle afterwards.

        • Hansi on 18/04/2023 - 08:49

          What does the extra month do?

          • dasher86 on 18/04/2023 - 08:50
            +2

            @Hansi: It allows you to squeeze out one more year of rego, insurance and maybe even a service pre-tax.

            • JDMcarfan on 18/04/2023 - 10:08

              @dasher86: that's really smart great suggestion.
              wonder if 13 months would be a viable option as well then

              • dasher86 on 18/04/2023 - 10:12

                @JDMcarfan: that's my plan.

                • nsavi on 18/04/2023 - 21:16

                  @dasher86: I'm planning for a 1 year too. But planning to take the insurance out(go with my own) as they charged about 2k just for insurance.

            • kawinuyo on 19/04/2023 - 00:24

              @dasher86: You may not have to. Usually they would have sent you the invoice for the following year a month or more in advance to when your insurance / rego is up.

        • AlextheMeertkat on 18/04/2023 - 11:43

          Yep, i also read a very similar advice on reddit but my NV company rep was very reluctant to update the quote. Maybe he is waiting for my final decisions but his straight amswer was "you wont benefit from that at all"

          • dasher86 on 18/04/2023 - 13:42

            @AlextheMeertkat: I'm finding it hard to get an updated quote regardless of what I want changed.
            "Have you ordered the vehicle?"
            Probably thinks I'm just kicking tyres.

            • AlextheMeertkat on 18/04/2023 - 14:28

              @dasher86: The same story, but i filled in all the forms the rep had requested to demostrate that i am not wasting his time.
              i also tried to build the quote back in excel but whatever I do i get few thousand dollars more for the initial in comparison with the normal drive away price and it is even with the gst included. If i subtract the gst the difference is even more.

              • dasher86 on 18/04/2023 - 15:17

                @AlextheMeertkat: The initial is a estimate provided by the NL and may not 100% be reflective of the driveaway price.
                They also chuck in ming mole options themselves 'motor one package's.

              • seannami on 18/04/2023 - 16:27

                @AlextheMeertkat: They don't include onroads (or they guess the onroads) in quotes, so that's possibly where the difference will be. My quote came out basically the same because onroads were basically negated by the rebate and the NVL's negotiating.

                • seannami on 19/04/2023 - 07:20

                  @seannami: Ok, turns out the rebate wasn't in the quote, they just negotiated a really good price!

      • nsavi on 18/04/2023 - 21:21

        I just started exploring NV.
        In the end… do we gain, lose or is still the same as outright buy ?

        • seannami on 18/04/2023 - 21:34

          If you are going for NVL on an EV or PHEV, you are better off by roughly $6000 + rebate over 5 years full salary sacrificed. If you got ICE or Hybrid, FAR worse off.

          I went over my calculations (ZSEV over 5 years) on it here: https://www.ozbargain.com.au/node/760061, and found out today my quote didn't include the rebate, so include an additional rebate amount (state dependent) on the calculations.

          Obligatory I am not an accountant or financial advisor, just passing on my experience and the process I went through for the decision.

          • nsavi on 18/04/2023 - 22:04

            @seannami: Thank you. I am planning to buy a petrol car.

          • dasher86 on 19/04/2023 - 08:30

            @seannami: Rebate probably would be a sunk cost anyway.
            But from what I gathered the NL company try to keep the rebate off the books… So it doesn't reduce the capital cost.

            • seannami on 19/04/2023 - 08:37

              @dasher86: Eh, I don't mind that it's coming as a cash rebate, I need to replace my oven and stove anyway (there is a lot of replacing to do atm).

          • AlextheMeertkat on 19/04/2023 - 13:15

            @seannami: In QLD, leased vehicles are not eligible for the ZEV rebate.
            The following vehicles are not eligible for the ZEV Rebate Scheme:
            …
            ZEVs that are managed or leased through a Lease or a Fleet Management Organisation

            Source: https://www.qrida.qld.gov.au/program/queensland-zero-emissio…

  • freefall101 on 17/04/2023 - 22:07
    +2

    I ordered an Atto3, went with 5 years. Will be here in a month or so. Reason for 5 years is simple, over that time all the additional costs (rego, insurance, etc) remain pre-tax so why not? It's also under warranty and the whole China concern is rubbish. BYD is aiming at being a major company, they'll uphold their warranties unless something major sinks them. But EVs are simpler cars and they're the ones making batteries for everyone.

    Tesla reviews seem to be getting worse with time, not better, particularly with the removal of sensors in favour of cameras. The wait time of the MG4 is quite a while and ZS EV didn't have the range I wanted. PHEV will lose tax benefits sooner and I might be able to redo the novated lease again and keep the tax benefits on additional costs longer. So the Atto3 was the obvious option.

    • seannami on 17/04/2023 - 22:19

      Same, but I went ZSEV over the BYD. Five years gave me time to comfortably save the residual (new mortgage) and tax free running costs for as long as possible. I understand that some people may not be in the position to take five if they are fixed term or in relatively unstable fields.

  • seannami on 17/04/2023 - 22:16

    If the Kona EV is in your range its a very solid option. My folks have a 6 year old model and it's actually a really nice car to drive. They also have an outlander PHEV and default to the Kona for most drives.

    Definitely test drive- MG EV is a very different drive to the petrol and PHEV MGs (much nicer, by all accounts). MG are currently sitting at 7 months on new ZSEV orders, so that would put you at a good time frame for the MG 4 if you'd rather a hatch. BYD is also a good car (see Pegaxs's thread). Based on driving both EVs (admittedly not much yet) and conventional hybrids, the drive on an EV is generally just a better experience once you get used to them (which, in my experience, takes about 15 minutes).

    Are you planning on paying the residual and keeping the car? Or rotating to a new one at the end of the lease?

    • AlextheMeertkat on 18/04/2023 - 11:48

      Ideally rotating but I am not sure that will be my first NL

      • seannami on 18/04/2023 - 21:53

        If you are looking to rotate, I wouldn't worry about resale regardless of being a smaller Chinese brand- 2021 MGEVs are sitting at around $44k, so pretty close to their original buy price. I doubt one extra year will make much difference. Spoke to a dealer today- second hand cars are not depreciating as fast because of the long wait times on new.

  • Nugs on 17/04/2023 - 23:14
    +1

    "Tesla Model 3 RWD:

    Cons: Extremely low ground clearance."
    140mm isn't low, let alone extremely
    .

    • seannami on 18/04/2023 - 06:49
      +1

      As someone who drives a Prius with that ground clearance (lower at the nose, higher at the rear), its a nightmare on steep-ish driveways. Had more nose-scrapers than I'd like over the years. Previous cars (Daewoo Kalos, Nissan Pular) didn't have any where near the same issue.

      Yes there are lower cars, but I can see OPs point.

  • IgG on 18/04/2023 - 00:51
    +2

    I went through this same issue a few months ago.
    Cupra Formentor vze is another option if you can stretch the budget to just below $70,000. A much nicer drive IMO than the other PHEV listed. I had one ordered but ultimately cancelled to go with a Polestar 2.
    The Polestar 2 is similarly priced to the Tesla Model 3, and is getting decent upgrades this year with (better range, RWD, pricing yet to be announced though…)

    • IgG on 18/04/2023 - 00:53
      +3

      Decided against the Tesla due to not liking the ride quality of the Model Y, lack of HUD or dash and just Elon Musk in general.
      IMO if you can stretch your budget the Kia/Hyundai EV dedicated platform (EV6 / Ionic 5 and 6) is awesome.

      • JimmyF on 18/04/2023 - 09:23
        +1

        and just Elon Musk in general.

        But you like the CEO of Kia/Hyundai?

  • p1 ama on 18/04/2023 - 01:09
    -1

    Cons: Extremely low ground clearance.

    How many times have you gone offroad in the last year? If zero, then you're never going offroad, and if you're never going offroad, what do you need to clear?

    • seannami on 18/04/2023 - 06:55
      +1

      Low fronted Prius driver (clearance listed at 14.cm, lower at the front)- nose scraping steep driveways, the underside plastic guard torn out by a parking bollard, the odd bounce off one of those not-quite-car-wide speed humps. It's kind of amazing how much is in the way when the car is low. It's not just me- my regular vet's driveway looks like someone has been at it with a chisel from all the cars scraping it, and some of the local shopping places. I can see where OP is coming from and I won't miss the lower car.

      • Hansi on 18/04/2023 - 08:51

        I changed from a hatchback to an SUV recently and can confirm that the nose scraping in parking lots and steep driveways (our local shopping centre for example) has stopped. Not sure why they design these this way with so many hatchback on the road.

  • Euphemistic on 18/04/2023 - 05:42

    Go drive them. Pick one. It’s the only objective way to determine which is ‘best’ for you.

  • JimmyF on 18/04/2023 - 09:22
    +1

    10-year warranty if serviced at a Mitsubishi dealership.

    Just look into the details of this. Kia/Hyundai have a 7 year warranty and they claim lots of stuff is 'wear and tear' and won't fix it under warranty.

    Lots of threads around on here or WP about warranty claims being knocked back, the most recent I read was the window seals that went brittle and fell apart, with the OEM claiming this is 'wear and tear' on a car under 7 years old.

    Also check if this is a Mitsubishi backed arrangement or a dealer backed one.

    Be aware with PHEV cars that a road tax is slowly creeping in. VIC has it, NSW is bringing it in, SA has plans too. For a PHEV this road tax applies regardless of the mode, so you can be driving on dino juice you are still paying a road tax per km. I'm not sure what QLD plans are for this.

    As others have said, can you stretch for a Model Y?

    To be noted with leasing, the pure EV lease costs are different compared to a ICE, no servicing and fuel is packaged as part of the lease, so the more costly car might end up with repayments similar to the lower cost ICE.

    • dasher86 on 18/04/2023 - 10:35

      why would no servicing be part of the package?
      all the quotes i have have it.

      • JimmyF on 18/04/2023 - 19:18

        why would no servicing be part of the package?

        Teslas have no fixed servicing, so not included in the lease package.

        all the quotes i have have it.

        For ICE yes, for Kia/Hyundai EVs yes, for PHEVs yes, but for Teslas they shouldn't have any servicing costs. Only tyres.

  • DingoBilly on 18/04/2023 - 09:49
    +1

    I think it's risky regardless of which option you go with.

    Tesla is a risk because Elon is an unhinged moron - hard to know what will happen with Tesla or whether they'll live up to their promises. You also have to live with the fact you're supporting him.

    Chinese manufacturers as you mentioned not sure whether they'll be around long-term.

    With the PHEV's you're basically just paying more for a petrol car with limited electrical benefits. It's a bit of a backwards move and I wonder if you're better off just sticking with petrol tbh as it's much of a muchness and you'd save some money that way.

    • AlextheMeertkat on 18/04/2023 - 11:39
      +1

      The problem with petrol cars is that there is no FBT exemption for them.

  • Cluster on 18/04/2023 - 09:59
    +2

    Forget PHEVs as an option. It's not as good as an EV, and still requires regular maintenance of an ICE. But you get better range…

    A key problem is you'll get taxed twice under incoming road use laws. Even if you're driving on petrol you'll be taxed again per kilometre because you're using a PHEV. The proposed tax in SA is 2.5c/km for EVs, and 2c/km for PHEVs.

  • Switchblade88 on 18/04/2023 - 10:21
    +2

    Here's my notes owning an MG HS PHEV for the last 18 months.

    Extremely happy with it, and suits my use case ideally - but if you're more metro then a pure EV might make more sense.

  • JafferMoney on 18/04/2023 - 10:22
    +1

    I have a 3 and Y.

    Yes the 3 sits qutie low, have already scrapped the bottom.

    Y is definitely the more practical car, especially if you have a family. But the 3 is more fun to drive, I have the long range, amazing acceleration.

    And yes, they have all the other benefits, too many to name. Great cars!

  • nedski on 18/04/2023 - 10:29
    +1

    We got the Atto 3 on a novated lease. The hit to my fortnightly pay packet was $260. Been very happy with the car and have it on a 5 year lease. Plan is to pay the residual payment at the end of 5 years and buy a second hand Y as the kids will be bigger and we dont give musky a red cent.

  • pegaxs on 18/04/2023 - 10:48
    +3

    Sooooo… basically a confirmation bias exercise for you wanting to buy a Tesla?

    A: "but it's shit"
    B: "but it's shit"
    C: "It's awesome!!"
    D: "but it's shit"

    Just get the Tesla. You wont be happy with anything else, no matter how good it is.

  • ozisaver on 18/04/2023 - 11:26
    +1

    Mazda cx-30 / 60?

  • dasher86 on 18/04/2023 - 11:43
    +1

    This document is a pretty cool read.
    It is still a draft, under development and awaiting sign off but gives a little bit of an indication about charging at home.

    https://www.ato.gov.au/law/view/document?DocID=DPC/PCG2023D1…

    Table 2: Cents per kilometre rate

    Rate applying to fringe benefits tax year or income year commencing on and after EV home charging rate
    1 April 2022 4.20 cents per km

    15.If electric vehicle charging costs are incurred at a commercial charging station, a choice has to be made. The EV home charging rate can be used, but only if the commercial charging station cost is disregarded. If the commercial charging station cost is used, the EV home charging methodology set out in this Guideline cannot be applied. Further, all necessary records such as receipts must be kept to substantiate the claim, as per normal record-keeping rules.

    • seannami on 18/04/2023 - 21:50

      My NVL doesn't include charging in the quote (they weren't set up for it yet). I am going to just deal with charging costs myself and claim any of it that is business related travel the usual way so it isn't a fringe benefit. Much easier than dealing with that at the RFB end. The NVL can cover the big expenses that are rolled into the quote and exempt from FBT (but not RFB).

  • payless69 on 18/04/2023 - 15:51

    PHEV?
    LOL

  • lunartemis on 11/05/2023 - 06:54

    Have you thought about the upcoming Polstar 2?

    • DarkOz on 11/05/2023 - 08:43

      I like the Polestar 2 but it's closer to around $70k than $60k…for the barebones trim too.

      • lunartemis on 11/05/2023 - 10:22

        At least they include the servicing for the first 100Kkm/5 years

        • DarkOz on 11/05/2023 - 12:15

          Yeah but scheduled servicing for EVs is cheap. 100,000km/5 years is probably only about $1,200.

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