Chery, BYD, or Tesla: Which Brand Offers the Best Novated Lease Value in 2026

Novated leasing works through a three way agreement between you, your employer and a finance provider. You select the vehicle you want and the leasing provider purchases it on your behalf. Your employer then agrees to deduct the lease costs from your salary. These deductions are made using a combination of pre tax and post tax income, which is what creates potential tax savings for many employees. The provider manages your vehicle payments and packaged running costs for the duration of the lease.

One of the benefits of novated leasing in Australia is the convenience it provides. Running costs such as charging or fuel, servicing, insurance and registration can all be included. This means the finance provider handles these expenses rather than you managing multiple separate bills. It simplifies your budgeting and gives you predictable weekly payments that reflect real world driving needs.

The Australian tax system is structured in a way that makes novated leasing particularly attractive. By using pre tax income for a portion of your repayments, your taxable income may decrease, which can improve your take home pay. For electric vehicles, the potential savings are even greater because of the current Fringe Benefits Tax policies that apply to eligible EVs.

At the end of the lease term, you have several options. You can return the car and start a new lease, refinance the remaining value or pay out the residual to take full ownership. These options make novated leasing flexible and ideal for people who prefer to change vehicles every few years or want to avoid the long term cost of owning an ageing car.

The best EV brand for novated leasing in 2026 depends on your driving habits, budget and lifestyle preferences, but several manufacturers consistently stand out. Tesla remains one of the strongest performers because its vehicles offer excellent range, advanced technology and strong resale value. These factors contribute to lower running costs and help improve affordability under a novated lease. Brands like BYD and Polestar are also becoming popular because they offer modern EVs at competitive prices, making them appealing for salary packaging.

Drivers who want premium build quality often consider Volvo and Mercedes electric models. These vehicles tend to offer superior comfort and advanced safety features, which appeal to families and professionals who spend significant time on the road. Their battery efficiency and high safety ratings also contribute positively to long term running costs, something the Fingo calculator reflects when comparing EVs.

Other Australians prefer value driven brands such as MG or Hyundai, which provide strong performance at more accessible price points. Hyundai’s Ioniq 5 and Ioniq 6, for example, are gaining rapid traction because they combine futuristic styling with reliable range. MG’s EV models, particularly the MG4, appeal to budget conscious drivers looking for low weekly repayments through salary packaging.

Ultimately, the best brand is the one that offers the features you want at a price that aligns with your packaged repayment expectations. Many people begin by using the calculator to estimate savings for several models before choosing which brand suits their life and budget.

Yes, many electric vehicles qualify for the current Fringe Benefits Tax exemption in Australia, which can dramatically reduce your novated lease costs. The exemption applies to eligible battery electric vehicles and hydrogen fuel cell cars that fall under the Luxury Car Tax threshold for fuel efficient vehicles. If an EV meets these criteria, it avoids the usual FBT liability entirely. This exemption is one of the strongest financial incentives available for salary packaging and is a major reason EV novated leasing is growing rapidly.

When an EV qualifies for the exemption, your employer does not need to pay FBT on the benefit of providing the car. This also means you do not need to make post tax contributions to offset that liability. The result is a lower overall salary deduction and potentially higher take home pay compared to leasing a petrol or diesel vehicle. The savings displayed in Fingo’s calculator factor this exemption in where applicable.

The exemption makes electric vehicles far more accessible for everyday Australians. Drivers who may have previously considered EVs too expensive often find that, through salary packaging, the weekly repayment is surprisingly competitive. This is especially true for widely available models like the Tesla Model 3 and Model Y, the BYD Atto 3 and the MG4, all of which sit under the threshold.

It is important to note that the FBT exemption currently applies only to eligible EVs and not to hybrids or plug in hybrids. As policies evolve, the exemption may change in the future, but for now it provides a significant advantage for drivers choosing electric vehicles under a novated lease arrangement.

The easiest way to estimate your novated lease savings is by using a purpose built tool such as the novated lease calculator. This calculator lets you input your income, vehicle price, lease term and projected running costs to generate a personalised estimate. The tool automatically accounts for tax brackets, EV exemptions and typical expenses such as charging, servicing, registration and insurance. For most drivers, it provides a reliable snapshot of what your weekly or fortnightly costs might look like.

One of the advantages of using the calculator early is that it helps you compare different EV models. Since running costs vary significantly between brands and battery capacities, the calculator reveals how efficient models such as Tesla, BYD or Polestar compare with higher consumption vehicles. It also helps you understand whether a three year or five year term is better for your financial situation.

You can also adjust your annual kilometre estimate to see how driving patterns influence your budget. High kilometre drivers often discover they save more with EVs because charging costs are much lower than fuel costs. Lower kilometre drivers may prefer models with smaller batteries to keep lease repayments manageable. These insights help you choose a vehicle that matches your lifestyle.

Once you have reviewed your estimates, the calculator becomes a confidence building tool. Instead of guessing what your take home pay will look like, you can see clear numbers before committing. This transparency is why more Australians start their EV journey with the calculator rather than walking into a dealership. It allows you to make a decision based on facts, not assumptions.