With the buzz around electric vehicles (EVs), it’s easy to feel like they’re the only option for novated leasing or salary packaging. While EVs come with enticing perks, traditional petrol and diesel cars (ICE vehicles) remain a strong choice—especially for Australians who aren’t quite ready to make the electric leap. Here’s why novated leasing an ICE vehicle can still be the smarter option.
1. Broad Range of Vehicle Choices
Petrol and diesel vehicles offer flexibility and variety that EVs haven’t yet matched. Whether it’s a heavy-duty ute, a spacious family SUV, or a reliable small hatchback, the variety in the ICE market caters to all kinds of lifestyles. For instance, if you need a vehicle that handles towing, off-road adventures, or long-distance drives, diesel and petrol models are often the better (and more available) option. Even in 2024, many novated lease customers find traditional vehicles offer more practical choices, tailored to their unique needs.
2. Easier Fuel Access and Faster Refuelling
While charging stations are expanding across Australia, ICE vehicles still offer the convenience of quick, widely available refuelling options. A petrol station is likely within easy reach, no matter where you’re headed. For those living in regional areas or frequently traveling long distances, the ease of pulling up to a pump—and being back on the road in minutes—makes ICE vehicles a reliable choice. You’re not planning routes around charging points or waiting in line for the next charger.
3. Competitive Running Costs and Tax Benefits
Novated leasing brings great tax benefits, reducing your taxable income by packaging vehicle expenses like finance payments, maintenance, insurance, and fuel in pre-tax dollars. And while EVs are currently eligible for an FBT exemption, petrol and diesel vehicles can still deliver substantial savings. Lower upfront costs for ICE vehicles and predictable running expenses can make a difference in your take-home pay, even without the EV-specific tax incentives.
The setup of novated leasing means that all regular expenses, from fuel to registration, are combined into one monthly payment. That means no sudden costs when it’s time for a big service or a new set of tyres. With fuel, maintenance, and insurance costs pre-budgeted, you know exactly what’s coming out of your pay, making ICE cars a great option for predictable spending.
4. No Range Anxiety and Practicality for Everyday Use
One of the biggest challenges with EVs is planning around charging needs, which can be a hurdle, especially for drivers without easy access to chargers at home or work. ICE vehicles allow you to drive wherever, whenever, without worrying about charging infrastructure or waiting times. For those who value convenience and flexibility, traditional vehicles remain a dependable choice.
Final Thoughts
For many Australians, petrol and diesel cars still make the most sense for novated leasing. Whether it’s for the ease of refuelling, the range of choices, or the financial predictability, ICE vehicles offer tried-and-true benefits. Novated leasing an ICE vehicle means less stress, simpler planning, and more money in your pocket—all while enjoying the comfort of a car that meets your everyday needs. So if EVs don’t fit your lifestyle just yet, rest assured that petrol and diesel cars are still a worthy and practical investment.
