Electric Vehicle Subscription: Comparing Alternative EV Ownership Models

The world of transportation is undergoing a revolutionary shift towards sustainability, and electric vehicles (EVs) are at the forefront of this transformation. With their eco-friendly nature, reduced operating costs, and cutting-edge technology, EVs are becoming increasingly popular. As the demand for EVs rises, so does the need for flexible ownership models, and that’s where the electric vehicle subscription model along with novated subscription and leasing comes into play. In this blog, we’ll dive into the different options for EV ownership options, their benefits, and who they are best suited for.

What are the options for EV subscription & leasing?

Outside of regular financing, there are three standout options for securing an EV for a medium to long term duration.

1. Electric vehicle subscription: Your flexible choice

This electric vehicle subscription model epitomises convenience and variety. With this option, you have the opportunity to drive a different brand-new electric vehicle every 4 to 12 months. This allows you to experience a range of models and brands without the commitment of long-term ownership. Even more appealing is the absence of long-term contracts. Thus giving you the freedom to choose the duration of your subscription according to your needs. This is well-suited for those seeking a medium-term solution or enthusiasts wanting to try out the latest EV innovations.

Electric vehicle subscription benefits:

Variety: A rotating fleet of brand-new electric vehicles ensures that your driving experience remains fresh and exciting.
Comprehensive Package: Your subscription fee covers insurance, registration, roadside assistance, servicing, tyres and maintenance.
Financial Peace: With no worries about vehicle depreciation or unexpected repair costs, you can drive with peace of mind.
Flexibility: Subscription plans ranging from 4 to 12 months cater to your preferences and adapt to your changing needs.

Who is an EV subscription suited for?

Urban Explorers: Perfect for city dwellers seeking an environmentally-friendly mode of transportation without the hassle of ownership.
Car Enthusiasts: Ideal for individuals who love the excitement of driving different and the latest EVs in market.
Short-Term Needs: If you require an electric vehicle for a specific project, event, or a temporary stay, this option provides the flexibility you need without locking you into a long-term commitment.

To learn more about electric vehicle subscriptions or to browse vehicle options near you, click here.

2. Novated electric vehicle subscription: A tax-savvy choice

The novated EV subscription is a powerful fusion of convenience and tax savings. Like its flexible counterpart of regular EV subscription, this model offers the luxury of regularly changing vehicles. However, the key distinction lies in the payment method. Through an agreement between you, your employer, and the subscription provider, payments are made via salary sacrifice, allowing you to take advantage of pre-tax income benefits leaving more money in your pockets!

Novated electric vehicle subscription benefits:

Tax Efficiency: Salary sacrificing your EV subscription payments translates to lower taxable income and increased financial savings.
All-Inclusive: Similar to the flexible subscription, this model covers insurance, registration, roadside assistance, servicing, and maintenance.
Financial Tranquillity: No need to worry about vehicle depreciation or unexpected expenses – it’s all part of the package.

Who is a novated EV subscription suited for?

Employees: An excellent option for employees seeking a win-win scenario – driving an EV while minimising their tax liability.
Tax-Conscious Individuals: If you’re committed to finding legitimate ways to reduce your tax burden and are interested in an EV, this model aligns perfectly.
Frequent Changers: For those who value the excitement of regularly switching vehicles while taking advantage of tax benefits, this option provides the best of both worlds.

For more information on salary sacrificing you can visit the Australian Tax Office (ATO) website, or enquire about Karmo’s Novated EV Subscription package optipns.

3. Novated electric vehicle lease: Long-term commitment with tax savings

The novated EV lease is designed for those who prefer a longer-term ownership experience with consistent tax benefits. Unlike the subscription models, a lease commits you to using a single vehicle over a period of 3 to 7 years, with the payments made via salary sacrifice for tax efficiency.

Novated electric vehicle lease benefits:

Tax Savings: The pre-tax nature of the payments results in significant tax benefits, making this an attractive choice for tax-savvy individuals.
Stability: If you prioritise stability and consistency in your vehicle choice, a novated lease provides a dependable solution.

Who is a novated EV lease suited for?

Long-Term Thinkers: This option is ideal for individuals who prefer the stability of owning a single vehicle for an extended period.
Consistent Commuters: If your daily routine heavily relies on a reliable mode of transportation, a novated lease ensures both stability and tax advantages.

Novated EV lease considerations:

Limited Swapping: Unlike the subscription models, you may be locked into using a single vehicle for the duration of the lease.
Residual Balloon Payment: At the end of the lease, to retain ownership of the vehicle, you’ll need to make a sizable residual balloon payment, which can be financed or paid using your savings.

For more information on a Novated EV Lease or to calculate potential savings, you can click here.

Electric vehicle subscriptions offer a range of options tailored to different needs and preferences. Whether you’re an urban dweller seeking variety, a tax-conscious employee, or someone who values long-term commitment, the world of electric mobility has a subscription model that can align with your lifestyle and goals.

Karmo electric car subscription service

Electric Car subscription and novated EV subscription services are redefining the way we drive. They offer flexibility like never before, with plans tailored to your needs, the ability to switch cars, and a wide variety of vehicles to choose from. If you’re ready to say goodbye to the limitations of traditional car ownership, embrace the future of driving. Consider a car subscription – the flexible way to drive. And when you’re ready to take the wheel, remember Karmo for a seamless and enjoyable car subscription experience. Happy driving!

The automotive industry is evolving faster than we can imagine, with Australian drivers looking for more convenient ways to access vehicles without the long-term commitment.