Used EVs Are Getting Cheaper. Here’s What to Check Before You Lease One

A newer or cheaper car isn’t automatically the lower-cost option on a lease. An eligible new EV can be exempt from fringe benefits tax (FBT), which can bring its cost well below what the sticker prices suggest. A demo or used EV can also qualify, but it must be under the luxury car tax threshold for fuel-efficient vehicles and must have been first held and used on or after 1 July 2022, so confirm eligibility with your lease provider first, particularly for a demo.

It’s also worth checking how much a near-new car really saves. Across 70 popular models, Carma found a typical one-year-old car is 14.8% ($7,399) cheaper than the same model new, but the gap runs from about 19% on a Subaru Crosstrek to under 1% on a Toyota LandCruiser Prado. Those models are mostly not EVs, but are still relevant to EV buyers: compare the exact new-car drive-away price before assuming used or near-new wins.

The residual matters as well. At the end of a novated lease there is a residual (balloon) payment set by ATO guidelines, and if you sell the car for less than that amount you cover the difference. With non-Tesla used EVs down 9.8% in a year, a model with weak resale demand carries more risk, and a demo’s warranty may not cover your full lease term if part of it started at registration.