Your questions answered: Which luxury EV should we buy to leverage the FBT exemption?

The lure of tax incentives for sub-$90K electric vehicles has some buyers keen to suss out their options, as one carsales reader has done this week. But they’re not just after any old EV, with luxury on the agenda.

We’ve also got someone concerned about the insurance valuation if their 4WD is written off.

And while the EV love continues to some of the newcomer brands out of China, there’s also plenty of interest in hybrids.

And with the absence of tech, how big are the fuel saving benefits of shifting to neutral when stationary?

Got a question but don’t know where to find the information you need? Email us at editor@carsales.com.au

Question: My wife commutes daily along the Victor Harbor Road in South Australia. It’s a round trip of about 100km at mostly 100km/h on a windy, notoriously poor road. We currently own a 2018 Volvo XC60 D4 with 170,000km on the odometer after five years, but maintenance costs are piling up (e.g. $3000 for an engine part and another $3000 for suspension repairs). It’s clear we need a replacement, and we’re strongly considering an EV, taking advantage of novated lease incentives.

Here’s the tricky part: our needs are specific. We value premium brands (yes, you can say the badge does matter); we also own a Mercedes-Benz C200 AMG wagon. But we also value practicality, given our high mileage and my height (193cm), plus our 15-year-old daughter is already 178cm, so back seat space can be an issue. Below are some thoughts on the options I’ve explored so far:

I’m also open to alternatives, especially in the large sedan, mid-size SUV, or wagon categories (I still love wagons; Audi and Skoda wagons are great-looking, but their EV versions are not here yet).

I’d love to hear your thoughts, especially about the Polestar 4 and any other models you think might suit our needs. While your reply might leave me with even more options to consider, I know it will help me make an informed decision. – Brenton

Answer: I drove the early Polestar 4 in Spain and the suspension tune we had was not representative of what we’re getting in Australia. Those cars were pretty ordinary, but I’ve also driven the Aussie cars and they’re a huge step up.

As with any car, it’s not perfect and the functionality of some of the tech isn’t terrific. But it drives really well and should absolutely be at the pointy end of your shortlist.

Interesting what you say about Tesla. You’re certainly not alone with the Musk concerns.

If you can focus solely on the car the Model 3 holds up extremely well. Plus it has the benefit of the superb Tesla charging network. My experience with it is it’s not only more prolific than other chargers but also more reliable.

Re the range of an i4 at freeway speeds, any EV will have the same issue. The additional aerodynamic drag at high speeds means the motor/s must work harder to push air out of the way.

As a general rule, I suggest people knock about 10 per cent off the claimed WLTP driving range for everyday driving. And knock about 20 per cent off for freeway driving.

The entry-level i4 eDrive 35i has a WLTP range of 430km, so I’d reckon something like 340km would be realistic on a freeway drive.

Obviously there are other models with more range, but they don’t come in under the luxury car tax threshold, so don’t allow you to leverage the Government’s fringe benefits tax exemption.

Also, with the i4, if a BYD Seal doesn’t have enough room for you I think you’ll find the same issue with the BMW. Given the Seal is based on a dedicated EV architecture it has great space utilisation in the cabin. The BMW is a petrol car adapted to electricity and its back seat space isn’t terrific.

There’s a raft of newcomer brands with some decent cars, including Zeekr, Deepal and Xpeng, but I suspect they may not win on the badge.

Another one coming soon is the BYD Sealion 7, which is effectively an SUV version of the Seal. The taller body means it has more space.

Otherwise, jump behind the wheel of a Polestar 4. It’s a great car!

Question: Can you help me work out the market value of a 2015 Toyota Prado GX 2.8-litre automatic?

Someone ran into the back of our car on New Year’s Eve during the day. Hit and run.

I’m comprehensively insured at market value. It’s done 164,000km.

I’m worried they’ll say it’s a write off. Can you give me an idea of the market value? – Louise

Answer: It’s always tricky getting an accurate value with a 10-year-old car because so much of it depends on its condition.

The good news is that four-wheel drives – Toyotas in particular – are in hot demand, so prices have been resilient.

The best place to start is Redbook, which is one of the services many of the insurance companies use to determine values.

For your car they’re estimating between $25,300 and $29,400 if you’re trading the car in and between $30,550 and $34,650 if selling it privately. That’s for a car with between 140,000km and 230,000km.

Click here to see the valuation.?

Assuming the car is in decent condition, you want to push for the upper end of the private price valuation, because that’s what you’d be paying if you had to replace it. And if you spot a similar car in a dealer lot it’ll likely be more expensive again.

So if the car is written off and they give you a valuation make sure you point out what it’s worth and what it will cost you to replace it.

Also, does the car have accessories? A towbar and other extras can all potentially add to the value of the car and could potentially be used to negotiate a higher price.

Hopefully they’ll be able to repair it so you don’t have to go through the stress.

Good luck with it!

Question: How does the Leapmotor C10 stack up against other EVs of that type? – Keith

Answer: I haven’t driven the Leapmotor yet. On paper one of its biggest assets is its price. At $47,500 drive away it undercuts many of the electric mid-sized SUVs by about $10K.

And it’s also packed with gear, including a panoramic sunroof, 360-degree camera, wireless phone charging, power adjustable front seats, sizeable central infotainment screen and over-the-air software updates.

To be fair, most of the new electric SUVs from newcomer brands – including BYD, Xpeng, Zeekr and Deepal – match or better that level of kit.

And the C10 is missing Apple CarPlay and Android Auto connectivity, which early reports have suggested is not great. We’ve also driven it overseas and our reviewer wasn’t overly impressed with it.

One of the big question marks with so many of these new brands is what their aftersales support will be like.

None have particularly large dealer networks compared with big players such as Toyota, although a few years in the market mean BYD’s is better than most.

Leapmotor is being imported by Stellantis, which has other brands such as Alfa Romeo and Jeep. Many of the dealers are already dealing with those brands.

So at this stage there are more questions than answers, but we’ll be spending more time with the cars soon so will be able to give more details as we learn them.

Question: I currently drive a 2020 Subaru Impreza but I’m keen to go to a hybrid about the same size and less than $35K.

I would appreciate your advice on my best option/s. – Maree

Answer: There aren’t many great new car hybrid options below $35,000.

A Toyota Corolla Hybrid is the pick and you may just sneak into one with your budget.

A Toyota Yaris Cross is around the same price. It doesn’t quite match the refinement and performance of the Corolla but is still decent buying. And being an SUV it rides slightly higher so should be easier to get in and out of.

If you have off-street parking near a powerpoint you may be able to make an EV work.

If so, check out the MG4, which is a lot more convincing than the MG3 Hybrid.

Question: When I stop at traffic lights I tend to put the car in neutral rather than use the footbrake. Does this do any harm, is it a good practice or does it make no difference?

In the 1950s in the UK, I started driving on a manual – in fact most there still are – and I lived and drove manuals there until the mid-’80s, when I came to live in Australia and experienced widely available automatics. Consequentially, it still comes naturally to me to put the car in neutral when I stop.

A second question, if I may. My wife wants a small to medium SUV and ideally, a hybrid. The MG ZS Hybrid seems to fit the requirement. She is suspicious because it seems cheaper than rivals like the Toyota Corolla Cross. Should she be? – David

Answer: Putting your automatic transmission in neutral every time you can save a tiny bit of fuel, but it can also place extra wear on the transmission by shifting in and out of Drive.

And with a twin-clutch transmission (such as Volkswagen’s DSG) it won’t make any difference because the transmission is effectively a manual with computer-controlled clutches, so when you stop it’s not dragging on the transmission at all.

And, of course, many modern cars have stop-start systems that temporarily reduce fuel use to zero. Many are fairly clunky in the way they stop and start, prompting owners to press a button to turn them off. But others are more seamless.

As for shifting to neutral, in most instances I’m not sure I’d bother.

If it’s a set of lights you know you’ll be stuck at for a long time then you may save a couple of cents, but you could also be doing long term wear to the transmission.

As for the MG ZS Hybrid, the new model is a huge step up on the older one (it was a low bar). But there are some quirks with its hybrid system and some of the driver assist systems can be too eager to beep and kick in when you don’t want them to.

The Corolla Cross is a terrific car with a better hybrid system. But, as you’ve realised, you’ll pay a lot more for it.

If you can stretch the budget we’d stick the Toyota ahead.

You could also look at the Honda HR-V Hybrid and Hyundai Kona Hybrid, both of which are great in different ways.

Got a question but don’t know where to find the information you need? Email us at editor@carsales.com.au

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