The Kia EV4 range provides a useful example of why new-car buyers should look beyond the driveaway price when comparing electric vehicles for a novated lease.
At first glance, the difference between the EV4 Air and the EV4 GT-Line is substantial. The Air has a quoted on-road price of $53,000, while the GT-Line is $68,000 — a sizeable $15,000 jump.
For many buyers, that headline difference could immediately rule out the GT-Line. But when the same vehicles are compared through a novated lease, the gap becomes much easier to understand and potentially easier to accommodate within a household budget.
Using novated lease quotes prepared by Summit Fleet Leasing and Management, the difference between the EV4 Air and GT-Line equates to approximately $39 a week, or $170 a month, in reduced take-home pay.
That changes the buying conversation considerably.
Comparing the three EV4 variants
The three quotes provided by Summit Fleet Leasing and Management use the same assumptions: an employee earning $80,000 annually, a 48-month novated lease, 60,000 contract kilometres and registration in New South Wales.
| Kia EV4 variant | On-road price | Net cost per week | Net cost per month | Estimated saving over lease |
|---|---|---|---|---|
| EV4 Air | $53,000 | $204.72 | $887.13 | $26,300 |
| EV4 Earth | $63,000 | $230.80 | $1,000.14 | $29,651 |
| EV4 GT-Line | $68,000 | $243.85 | $1,056.69 | $31,327 |
The EV4 Air quote shows a total financed amount of $48,436.96 and an estimated net cost of $204.72 a week.
Moving to the EV4 Earth adds $10,000 to the on-road price, but increases the estimated impact on take-home pay by only $26.08 a week, or $113.01 a month.
Stepping from the Earth to the GT-Line adds another $5,000 to the on-road price. However, the difference in net cost is approximately $13.05 a week, or $56.55 a month.
The $15,000 question
Comparing the two ends of the range makes the impact clearer. The GT-Line’s $68,000 on-road price is $15,000 higher than the Air’s $53,000 price. That represents an increase of approximately 28.3 per cent.
Yet the estimated net weekly cost rises from $204.72 to $243.85 — an increase of approximately 19.1 per cent.
Instead of asking whether the GT-Line is worth an additional $15,000 upfront, the novated lease customer can consider a more practical question:
Is the GT-Line worth another $39 a week?
For some buyers, the answer will still be no. The Air may provide everything they need at the lowest cost. However, others may decide the smaller weekly or monthly difference makes the higher-grade model realistic.
This is one of the central lessons in the Fleet News Group Novated Leasing Guide. Because the cost is spread over a term such as 36, 48 or 60 months, moving to a higher specification can add a relatively modest amount to the regular deduction compared with the apparent difference in purchase price.
Look at the impact on take-home pay
A novated lease payment is not directly comparable with a normal car-loan repayment. The Summit quotes include budgets for vehicle finance, comprehensive insurance, charging, servicing and maintenance, registration and CTP insurance, replacement tyres, and administration.
That means the weekly or monthly net cost is designed to reflect much more than the finance repayment alone.
The Fleet News Group Novated Leasing Guide explains that the most important number is not necessarily the headline lease rental. Buyers should focus on the difference the arrangement makes to their take-home pay, because this better reflects the personal cost of the packaged vehicle.
For the quoted employee earning $80,000, the estimated take-home-pay impacts are:
- EV4 Air: $204.72 a week
- EV4 Earth: $230.80 a week
- EV4 GT-Line: $243.85 a week
Seen this way, the three vehicles no longer appear to be separated by enormous price gaps. They become three different weekly budget choices.
The FBT exemption changes the numbers
All three EV4 quotes show $0 in Fringe Benefits Tax and no post-tax employee contribution.
This is important because FBT has traditionally been one of the major costs associated with salary packaging a vehicle. The Fleet News Group guide explains that removing FBT from an eligible electric vehicle can substantially reduce the lease cost and help offset the higher purchase prices commonly associated with EVs.
The benefit is also reflected in the estimated savings calculated by Summit.
The EV4 Air quote estimates total savings of $26,300.94 over the four-year lease. For the Earth, that rises to $29,651.33, while the GT-Line quote estimates savings of $31,327.63.
The higher-priced vehicle still costs more, but the tax-effective structure means its purchase-price premium does not flow directly into the employee’s weekly budget on a dollar-for-dollar basis.
A better way to compare new cars
New-car buyers are conditioned to compare recommended retail prices and driveaway figures. That approach is understandable when paying cash or organising conventional finance, but it can be misleading when considering a novated lease.
The EV4 comparison shows why buyers should obtain quotes for each variant they are considering rather than automatically selecting the cheapest model.
A $15,000 difference on the showroom price board sounds enormous. A difference of around $39 a week may feel quite different when considered against the equipment, comfort or ownership experience the buyer expects from the vehicle.
The Fleet News Group Novated Leasing Guide is designed to help employees understand these calculations, the role of salary packaging, the FBT exemption, bundled running costs and the questions to ask before signing an agreement.
The Summit figures are illustrative quotes rather than current offers, and individual results will vary according to salary, kilometres, lease term, vehicle price, interest rates, running-cost budgets and employer policy. Buyers should obtain a formal quote and independent financial or taxation advice before entering a novated lease.
