Electric vehicle finance for businesses and individuals: chattel mortgage, novated lease or car loan

Last updated 6 November 2026 · Reviewed by 360 Asset Finance Compliance

How do I finance an electric car?

It depends on who's buying the car and what it's for:

• For personal use: a car loan, usually secured by the car, is a common option. Consumer credit laws apply, so we check the loan meets your needs and that you can afford the repayments.
• As an employee whose employer offers salary packaging: a novated lease may be an option, with payments made from your pay.
• For your business: a chattel mortgage, finance lease, CHP or operating lease may be an option. Your accountant can tell you how each is treated for your business.

Can I get a novated lease on an electric car?

Yes, if your employer offers salary packaging or novated leasing. A novated lease is a three-way agreement between you, your employer and a finance provider, and your employer makes the lease payments from your pay. A residual is set at the start and falls due at the end.

A fully maintained novated lease also bundles running costs into those payments. Depending on the provider, that can include servicing, tyres, registration, insurance and charging. Ask what's included before you sign. Self-employed people and sole traders generally can't use a novated lease, because there's no separate employer to make payments from their pay.

How do businesses finance an EV or an electric fleet?

Businesses use the same structures for an EV as for any other vehicle, including electric utes and vans. They differ in who owns the car, whether there's a balloon or residual, and what happens at the end. Ask your accountant how GST and depreciation apply. If you'd like a charger included in the finance, ask your broker.

How do a car loan, novated lease and chattel mortgage compare for an EV?

A general summary only: terms depend on the agreement.

Can I finance a used EV or buy from a private seller?

Yes, subject to the lender's criteria. Lenders on our panel can also finance cars bought from private sellers. The lender may need to check the car and confirm there's no money owing on it through a Personal Property Securities Register (PPSR) search. Before you buy a used EV, ask about the battery's condition and any warranty that's left.

What are the pros and cons of financing an EV?

Pros

• You spread the cost over an agreed term instead of paying all at once.
• There are options for individuals, employees and businesses.
• A fully maintained novated lease can bundle running costs, including charging, into one payment.

Cons

• Interest and fees add to the total cost.
• A balloon or residual leaves a lump sum at the end, and the car may be worth less than that amount.
• A novated lease depends on your employer, and changing jobs can affect how you pay.
• Tax outcomes depend on your circumstances, so don't rely on savings your adviser hasn't confirmed.

How do I finance an EV, step by step?

1. Choose the EV, new or used, and get a quote from the dealer or details from the private seller.
2. Work out how it will be used: personally, through your employer's salary packaging or by your business.
3. For a novated lease, check with your employer's salary packaging provider. For business use, talk to your accountant about tax.
4. Tell your broker what you need and compare options across the panel. The lender will assess your application against its criteria.
5. If it's approved, you sign the documents and the lender pays the seller at settlement.

How can 360 Asset Finance help?

For employees, individuals and businesses, we:

• Arrange the finance: EV car loans, novated leases and business vehicle finance through our lender panel, subject to the lender's criteria.
• Compare the panel: we're not tied to one lender, so we compare repayments and total cost.
• Check it suits you: for personal finance, we check the loan meets your needs and that you can afford the repayments.
• Sort the documents: we tell you what the lender needs and prepare the application.
• Work with your advisers: tax and FBT questions go to your salary packaging provider or accountant.
• Manage settlement: we work with the lender and the seller, and keep you updated through to settlement.

FAQs

Sources and further reading:ATO: Electric cars exemption · Moneysmart: Car loans · business.gov.au: Leasing or buying vehicles and equipment

General information only. It doesn't take into account your objectives, financial situation or needs, and it isn't credit, tax or legal advice. Finance is provided by the lender you choose and is subject to its lending criteria; fees and charges apply. 360 Asset Finance is a trading name of Kuone Consulting Pty Ltd (ABN 75 647 329 002), Australian Credit Licence 566705.