Driving value: how do EVs really stack up financially?
It's a depressing truth: your shiny, new, four-wheeled pride and joy starts to lose value the moment you drive it out of the showroom. With every click of the speedometer, its dollar value declines.
But could electric vehicles (EVs) offer financial benefits that make up for this?
Governments have explored ways to make car buyers choose EVs over petrol or diesel vehicles. Tweaking the tax system has delivered emissions-lowering benefits.
The federal government's Electric Car Discount Bill in 2022 removed fringe benefits tax on employer-provided fully electric vehicles priced below the luxury car tax (LCT) threshold ($91,387 for fuel-efficient vehicles in 2024-25), supercharging fleet purchases.
At BMW, the bill had an immediate impact. 'We recorded 7,787 registrations of fully electric BMW vehicles in 2024 – with most of these priced below the LCT – meaning they represented nearly 30% of our total sales volume,' says Nick Raman, the product and business communications manager for BMW Group Australia.
'In 2023 that figure was 11%.'
Other tax incentives and discounts are also making EVs more affordable. Jessica Brady, a financial adviser, says a novated lease, which allows an employee to finance a vehicle through salary packaging, can result in an income tax saving, as well as a lower purchase price.
'The finance company claims a credit for the GST and so generally offers a discount by the same amount for the vehicle,' Brady says. 'So, there can be a discount, both from a tax savings perspective and the GST component.'
Novated leasing contracts can be complex, Brady warns. She advises anyone thinking about taking one on to get professional advice. 'It's not something you should be making a quick decision about.'
Thinking about a car purely in terms of the purchase price ignores the range of other benefits that can accrue to owners or leaseholders. Consider ongoing maintenance and servicing. This is where EVs have an advantage, Raman says. 'EVs have fewer moving parts, as they don't have the multitude of components intrinsic to a conventionally powered vehicle.'
However, even if the maintenance schedule and requirements are different, EVs still require attention and ongoing care. At BMW, it is not just an annual date in your diary based on time or kilometres driven. Vehicle monitoring is integrated into condition-based servicing (CBS), so owners are automatically alerted when the system detects the car needs attention. Proactive care, which anticipates the needs of customers and connects them with BMW service representatives when required, has also recently been added to the CBS system.
'Sensors detect any functional irregularities early and transmit the data directly, in real time, to BMW for analysis and actioning,' Raman says. 'These measures help ensure a customer's BMW runs and performs at its best.' The bottom-line benefit for EV drivers? Fewer problems mean less maintenance and servicing costs.
For EV drivers with home solar and a battery, running costs can also be lower. The RACV says that depending on how much you use your car and the size of your system, you may be able to charge your car for free, or at a lower cost than at public charging stations. Transport for NSW estimates EVs are significantly cheaper to run than petrol or diesel cars, with fuel savings of up to 70% and maintenance savings of about 40%. Government rebates also make installing a solar system more affordable.
Value isn't all about costs. The decision to buy an EV is often anchored in the knowledge that it is a sustainable choice for the future.
Now there is more choice in the market and prices have come down, sales are going up. Brady says: 'One thing that I'm very cognisant of is that more and more people are wanting to invest their money in a way that aligns with their personal values.'
As well as cost, range anxiety has long been a major deterrent for would-be EV buyers, but their ranges are increasing, charging networks in urban and regional Australia are improving, and in-car technology is making it easier to manage your charging.
BMW's embedded maps system shows charging locations and the estimated charge remaining, and an 'efficiency coach' inside the car helps maximise driving range.
Raman says the My BMW app complements this. 'It has an extensive charging section that includes charging, charge history, statistics and a charging station locator.'
Discover the BMW range of electric cars.
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