An Australian driver spending up to AU$180 (about $123 USD) a week on gas is considering switching to an electric vehicle. But despite the potential savings, one concern remains.
Here's what to know
In a Reddit post in r/AusFinance, the original poster asked whether selling their car and taking out a novated lease on a used EV would make financial sense. A novated lease would be an agreement that included the driver, their employer, and a finance company.
The OP said gas for commuting alone costs between AU$20 and AU$25 (about $13-$17) a day across roughly 20 workdays each month. The OP had been traveling 25 mi (40 km) to work, making the daily round trip 50 mi (80 km).
Their after-tax estimate for a used EV lease was substantially below AU$400 (about $272) every two weeks. Their gas spending totaled AU$120-AU$180 (about $82-$123) per week once non-work trips and varying shifts were included.
"Also worth mentioning I love my current car," the OP wrote.
More background
The driver could charge an EV using the solar panels at the home they own.
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"If it can be mostly charged from solar at home, [then] it's a no-brainer," a commenter responded.
They planned to put the proceeds from selling their current car, about AU$25,000 (about $17,060), into their mortgage offset account.
One commenter, an EV owner since November 2024, calculated that the OP's proposed lease would add up to AU$10,400 (about $7,097) annually.
What can be done?
The same commenter described how combining an EV with solar panels and a home battery had helped reduce their own expenses. They reported paying for charging only on long holiday road trips, while charging at home and elsewhere in Sydney cost them nothing.
"Have not paid an electricity bill since install," they wrote. Two years into using their solar-and-battery setup, the commenter expected it to pay for itself in about six years.
They also pointed out reduced regular servicing needs as another potential saving when switching from a gas-powered car to an EV.
Another commenter wrote, "I did exactly that. I think it's working out ok. Repayments for me seem cheaper though approx $350 FN on a Tesla over 4 years."
Where can I learn more?
Charging access and tax incentives also factor into the decision to trade gasoline bills for EV payments.
• A Sydney commuter considering a used Chevrolet Bolt faced charging challenges without home access.
• Australian drivers could lose annual EV tax savings of $5,000 under Coalition plans.
• Australian power bills will rise about $1 annually to help fund curbside EV chargers.
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