In the recent results announcement from McMillan Shakespeare Group (MMSG), they estimated a novated lease market share of 22.6% with 74,000 vehicles. Using these estimates, the market size for vehicle salary packaging is approximately 330,000 vehicles.
Another interesting insight in the report is the percentage of electric vehicle orders. In 2023, 16.1% of novated orders are for EVs. Most providers of novated leases have quoted an increase in enquiries and orders of electric vehicles though this figure from MMSG is double the share reported in the April VFACTS new car sales results.
To demonstrate the future revenues opportunities available to investors from the transition to electric vehicles, MMSG provided a comparison of a Tesla Model 3 in a novated lease pre and post the implementation of the FBT exemption for EVs and PHEVs.
The annual cost pre FBT Exemption was $17,518 compared to $12,446 post FBT Exemption. This is a savings of $5,072 and makes the Tesla Model 3 $502 cheaper per annum than a Mazda CX-5.
MMSG are also predicting higher yields because of the higher EV purchase price and overall growth because of the broader appeal of electric vehicles to more eligible employees.
