How do people pay for electric cars

Battery-powered vehicles are more expensive than most cars, but there are special loopholes that make them surprisingly affordable.

EV driver Michelle Ryan, Director of Bespoke Money Mortgage Broking, charging her vehicle at the Evie Network Charging station inside Indooroopilly shopping centre. Photo: David Clark

Electric cars are on track to represent one in 10 new car sales in Australia, driven by attractive tax and finance incentives.

Australians bought almost 72,000 electric cars in the first 10 months of 2023, a huge increase on the 24,000 delivered in the same time last year.

Photo of comparison test between Tesla Model 3 performance, Polestar dual-motor and Ioniq 6 dual motor. Picture: Thomas Wielecki

Electric cars finished on top of a handful of new vehicle segments in October, outselling many conventionally powered cars.

Tesla’s Model 3 finished on top of medium car sales, ahead of the Toyota Camry, Mazda6 and BMW 3 Series. The MG4 finished on top of the small cars over $40,000 class in October, ahead of premium hatchbacks such as the Volkswagen Golf and Audi A3.

Porsche’s electric Taycan doubled sales of established European sedans such as the BMW 5 Series, Audi A6 and Mercedes-Benz E-Class to be the best-selling large sedan for the month.

Fringe benefits tax concessions and sharper interest rates for green vehicles have helped propel electric cars to new levels.

SUVs such as the Tesla Model Y and Hyundai Ioniq 5 are proving popular. Photo: Thomas Wielecki.

Figures provided by the National Automotive Leasing and Salary Packaging Association show it is cheaper to lease a $75,000 Tesla Model Y than a $58,000 Toyota RAV4 hybrid.

Ken Spellacy, general manager of asset finance for Pepper Money, said the company’s EV loans have increased by 190 per cent since 2022.

A year’s free charging for Pepper Money customers through Evie Networks helped customers make the switch.

“As Australians embrace the EV revolution for the cost and climate benefits, the phenomenon is rapidly reshaping the Australian automotive landscape, and we expect sales to continue rising in 2024,” he said.

The Tesla Model 3 is Australia’s most popular EV. Picture: Thomas Wielecki

“We predict more than 10 per cent of new car sales will be EVs next year as Australian major automakers recognise the demand and invest heavily in EV manufacturing and distribution.”

The Tesla Model 3 sedan tops the list of electric cars financed through the brand, ahead of the larger Tesla Model Y and rival BYD Atto 3.

EV driver Michelle Ryan, Director of Bespoke Money Mortgage Broking, charging her vehicle at the Evie Network Charging station inside Indooroopilly shopping centre. Picture: David Clark

Brisbane mortgage broker Michelle Ryan switched from a BMW 3 Series to a Tesla in 2022.

“I wanted to do something that was good for the environment, and I always loved the Teslas,” she said.

“I really wanted it to feel different to a normal car. The time first you sit down in it, it’s like sitting in a spaceship. I loved that.

“It was the most beautiful drive in a car I’ve ever had. I hate having to drive my partner’s ute if I have to.”