Round and Round The EV Conversation Goes
Where will it stop? Nobody knows, especially in the Australian car market.
In an economy which is seeing a decrease in the number of new cars purchased in 2019, a lack of infrastructure and little to no government subsidies, taking a leap of faith onto the electric rainbow road is seemingly further and further away.
When we started writing this article towards the end of April, we never thought that by the time Election Day was upon us, this would be one of the focus points with both parties going back and forth in a war of words, even though they are effectively spruiking the same policy.
There is currently a chicken and egg situation when it comes to the purchase of EV’s in Australia. In December 2018, Roy Morgan released a survey which asked more than 37,000 drivers if an EV was a serious consideration for their next car. More than 50% of those surveyed expressed serious interest in parking a shiny EV in their driveway. So why is it that these numbers aren’t translating to serious sales results?
There will always be a couple of factors at play when it comes to the decision of purchasing an EV such as the large upfront purchase price, the lack of charging stations and the overall newness/uncertainty of an EV.
With the ACT being the only state or territory to offer exemptions, there isn’t much assistance or incentive to look at an EV without government subsidies helping to lower the upfront cost. Affordable EV’s have been out of reach for most Australians ($146,000 for a Tesla Model S anyone?) but this is slowly changing. Nissan announced the pricing of its brand new Nissan Leaf in early 2019, starting at $49,990 before on road costs. And from early reports, it is going to be a great drive. Tesla also has the much-anticipated Model 3 being released sometime this year in Australia, with an estimated cost between $49,500 – $76,000 before options and on road costs. But with constant delays in their delivery times (original deposits placed in March 2016) it seems that consumer confidence is wavering. Hyundai has also released their Ioniq range, Hyundai Kona EV and Mitsubishi have been in the game for a while with the Mitsubishi PHEV. There are definitely more EV’s in the market, but these seem to be the ones getting the most attention.
Range Anxiety is a common phrase amongst discussion into EV’s. This in part refers to the chicken and egg situation I mentioned earlier. There has been a lack of infrastructure built near main and suburban roads to assist in the evolution of EV’s. But without the infrastructure being put in place, potential buyers will be put off by the thought of not having anywhere to charge their vehicle on long trips or having to plan their route to the nearest charging station.
With a federal election on the horizon, the Australian Labor Party have unveiled an EV Policy as apart of its broader climate change announcement, announcing a push to a target of 50% of new car sales to be EV’s by 2030 and also establishing a COAG agenda to improve infrastructure planning. The Federal Government has confirmed that its own strategy won’t be released for another year.
Will this increase consumer confidence and help with the increase in EV sales? Only time will tell.
Having an EV may seem like a big upfront cost but what about getting an EV on a Novated Lease? With all Novated Lease vehicles purchased from a dealership, the GST amount (up to $5,234) is claimed back on the finance amount. So already an EV with ProNovate can save you up to $5,234 but it doesn’t end there.
- New Car Pricing – We get you the best deal on your choice of car, due to our bulk-buying power and unique reverse bidding platform we will get you the best price available.
- We Bundle All Your Running Costs – We set up one fixed regular payment to cover everything, so you don’t get “bill shock” when the rego and insurance turn up all at the same time. This consistent amount makes weekly budgeting simple.
- Great Tax Benefits – A Novated Lease amount is taken from your pre-tax salary. So, all the bundled running costs are GST free. It also lowers your taxable income meaning you pay less income tax. That leaves more money in your pocket. Who doesn’t love a tax benefit?