Get into an EV with these alternatives to traditional finance

If you’re looking into these options for an electric vehicle (EV), or if you’re unsure about EVs and whether you want to invest in one long-term, the research process can feel tricky. To help, we’ve created this guide to help you along the way, starting with the basics - what is the difference between subscriptions and leasing?

A novated lease is a three-way agreement between an employer, an employee, and a novated lease provider (a finance provider). Employees can finance a car as part of their pre-tax salary, also known as salary packaging or salary reduction.

The benefit of this (especially during a cost-of-living crisis), is that you may pay less tax on your income.

Like a traditional loan, obtaining a novated lease requires a credit assessment, taking on the finance and, in certain cases, a deposit. These leases typically have fixed-term contracts spanning several years.

The downside? While this may be manageable if you plan to stay in the same job, if your employment circumstances change, and you’re unable to transfer the lease to a new employer, you might have to cancel it.

Cancelling may incur exit fees, and you may be required to settle the residual value of the vehicle calculated as a percentage of the car’s total value.

Subscriptions are a relatively new way to get into a vehicle and are gaining popularity.

Origin was one of the first to market with their salary packaged subscription program in Australia in early 2023. Following trials with their own staff, they found that flexibility is highly valued and ideal for those who are curious about EVs and want to test them.

Like the novated lease, the subscription service is also a salary sacrifice arrangement, meaning you could also save thousands (yes, please) compared to taking a loan or buying an EV outright. It’s also a bonus if you want to try before you buy, or are unsure about whether an EV is right for you.

While both options include perks like possible tax savings and offsetting the car’s running costs - as well as having the option to buy or upgrade the vehicle after a set time - subscriptions can provide more flexibility and freedom.

“Subscription models remove the uncertainty about future value and allow flexibility,” says Graham Cooke, head of consumer research at Finder.

“Many subscription services bundle insurance, maintenance, and other services into a single monthly fee, simplifying budgeting and reducing unexpected costs. Similar to some high-end mobile phone plans, they also often allow the user to upgrade to the latest model regularly.”

This flexibility and freedom, as well as streamlining your vehicle admin, are some of the greatest benefits of subscription services because simply put, they make the process a whole lot easier.

Another perk of subscription services is that they can reduce the financial risks associated with buying a car. Origin’s 360 EV Subscription model is one of these.

This specific package bears all financial risk, without lock-in commitments or exit fees, allowing you the freedom to trial an EV on a month-to-month basis, eliminating initial upfront financial costs.

It allows subscribers to swap or upgrade to the latest EV model with 30 days’ notice. On the flip side, if you’re enjoying your EV, keep it and every 12 months, you’ll receive a 15% discount with the option to buy the vehicle after the third year*.

These types of services are a flexible solution for those who need a car temporarily or prefer not to be locked into a long-term financial commitment says Cooke.

Origin’s EV subscription service offers the latest EV vehicles from a wide range of brands like Tesla, Polestar, BYD, Volvo, Hyundai, Kia, MG and more.

It’s not just employees who reap the benefits of EV subscription services, businesses can too.

“For businesses, subscription models offer scalability, operational efficiency and risk mitigation,” says Cooke.

“Business managers can adjust their fleet size to match demand without the long-term financial commitment of purchasing vehicles. Subscription services also reduce the administrative burden by including maintenance and other vehicle-related services.”

Origin's flexible EV subscriptions cater for businesses with their all-inclusive package, which makes budgeting a breeze. One simple monthly repayment covers all vehicle running costs (excluding charging).

The program allows businesses to choose between a monthly subscription plan or fixed-term options with lower instalments allowing them to cater to their specific needs and budgets.

Plus, with a dedicated team of EV consultants, project managers and installation managers on hand from Origin, everything from vehicle management to charging solutions is covered offering you peace of mind.

EV subscription is a flexible all-inclusive option that can make getting into an EV breeze. You can drive now, buy later with Origin.

Important information

*An additional 15% discount will be applied on the anniversary of the delivery of the vehicle (for up to 5 years) and your subscription fee will automatically be adjusted.

If you change vehicle, your fee discount will reset. You’ll start paying the full subscription fee for the new vehicle and the discounts will start again on each anniversary of holding that different vehicle.

The content provided above is general and has not taken into account your objectives, financial situation or needs.

Origin recommends that you seek your own independent legal, financial and tax advice when making any decisions in respect of the appropriateness of novated leases or subscription services for your circumstances.

Visit Origin’s website for full T&Cs and product information.