Login
PHEVs are gaining traction as a great balance between sustainability and practicality.
With the automotive industry rapidly shifting towards greener alternatives, Plug-in Hybrid Electric Vehicles (PHEVs) are gaining traction as a great balance between sustainability and practicality.
PHEV sales for the first six months of this year were more than double what they were in the first half of 2023*.
To delve deeper into this trend, we spoke with Jack who has recently made the switch to a PHEV1. Jack offers insights into his experience adapting to EV technology and explains why a PHEV might be the perfect middle ground for those not yet ready to fully embrace an all-electric vehicle.
Q: Hi Jack, tell us what car you currently drive?
A: A Mitsubishi Outlander PHEV.
Q: Did you get the car through a novated lease? What did you consider when comparing your finance options?
A: Yes, I decided to take the novated lease route. I explored a couple of financing options. Many of the dealerships had competitive finance rates which I did consider. In the end, the Electric Car Discount that’s available through a novated lease, meant the Outlander PHEV was Fringe Benefits Tax (FBT) exempt and those extra tax savings ended up being the deciding factor for me.
Q: Why did you choose a PHEV over a fully electric or petrol vehicle?
A: Initially, I looked at a range of different cars – a mix of petrol, EV and PHEV models. It really boiled down to the EV FBT exemption. When I compared the quote of a lower priced petrol vehicle to the quote of higher priced PHEV, the repayments were the same if not cheaper. It meant I could get a higher priced car, with more advanced features with little difference in overall cost.
Savings aside, a PHEV means I've been able to dip my toe into the EV space while still having the safety net of using petrol, as we do like to take longer trips. I didn’t feel ready to commit to a fully electric car, so for me this is the best of both worlds.
Q: What are your typical driving habits?
A: I’m based in Brisbane and typically use the car throughout the week for shorter trips like commuting to work, picking up the kids, going to the shops, appointments etc. On the weekends we will often drive to the Gold Coast or Sunshine Coast to visit family.
Q: How does charging your car fit in with your driving habits?
A: Throughout the week, we manage to exclusively run the car on electric power. We get around 80km range on a single charge, so that covers all those shorter trips. I like to say you ‘treat the car like an iPhone’ when it comes to charging. We plug it in overnight so it's back up to full charge in the morning.
For longer trips, we use the electric power then switch over to petrol to cover the rest of the trip. We usually stay with family, so we can plug the car in overnight and then do it all over again on the way home.
Q: What do you love most about your PHEV?
A: From a driving point of a view, the car is very quiet compared to my previous petrol cars. The tech features are great, my phone instantly connects to Apple CarPlay, and there's a handy wireless charging pad. I have a young family so a major drawcard for me was the spacious interior with plenty of room for a car seat and dog in the back and pram in the boot. The 10-year warranty through Mitsubishi as well as the safety features also stood out to me.
From a savings and convenience point of view, we’ve really noticed how little we're filling the car up with petrol, it’s a big decrease in overall running costs as well as the time savings in going to the petrol station.
Q: Aside from the EV FBT exemption, are there any other benefits of a novated lease that you're loving?
A: I love that the running costs are factored into my fortnightly repayments. It just helps with overall budgeting as servicing, fuel, rego etc are all part of these repayments. Smartleasing also takes care of renewing the rego on my behalf, so it's nice to know I won’t have to worry about doing that myself when the time comes.
* Source: ABC News Article: "Motor industry pushes to extend fringe benefits tax discount for plug-in hybrid cars as sales surge", published 23 July 2024. https://www.abc.net.au/news/2024-07-23/push-to-extend-tax-discount-for-plug-in-hybrid-cars/104125782
1 - Interviewee is a staff member of a related entity of Smartgroup Pty Ltd.
With the novated leasing calculator, you'll get an instant indication of all-inclusive fortnightly repayments and tax savings that could be available to you.
Calculate your savings now.
Fringe Benefits Tax (FBT) exemption available for eligible electric, plug in hybrid or hydrogen cell vehicles purchased through a novated lease up to the Luxury Car Tax limit ($91,387 in FY 2024-25).Plug-in Hybrid Electric Vehicles will only be eligible for the exemption if the vehicle is delivered, and the vehicle lease commences, before 1 April 2025.