Should I novated lease a BYD Shark ute to save on fuel costs?

C

crazyminnergerane

New Member
Hey all! I’m after advice on buying an EV and how you’d do it in a company. Right now, I drive a V8 as a daily, and it costs roughly $3-$350 a week. I’m thinking about putting this car away and slowly working on it to justify storing it—it’s enjoyable but expensive and ultimately devaluing the car—and I’m open to a scenario that makes the EV “free.”

I’m considering a BYD Shark 6, and I think spending money on a depreciating asset (EV) beats just spending it on fuel, and it keeps KMs down on an appreciating asset.

My question: would you do this in a novated lease? Have youu had any personal experience with the BYD utes? For context, the company has no loans under it right now. Does this have any effect on borrowing power?

I’m interested to hear people’s thoughts on this, and thanks in advance (I’m still doing my own research, of course, but I love hearing experiences.)
 
Hi poster.
To answer your actual question, first off you’ll need to work through this with your accountant, because a novated lease to yourself as director vs the business running a chattel mortgage are two very different things when it comes to tax benefits and FBT implications. Also, just note that Novated Leasing sets a km target each year, and if you don’t meet it, you can be exposed too.
Talk to your accounatnt about the structuring before you do anything else.
 
Get a full EV... below LCT threshold. No fbt exemption on a BYD Shark... Will make a massive difference to you in terms of record keeping and running costs in terms of reduced maintenance as well as fuel costs.
 
I have a Shark on a novated lease. BBut you really needed to do this before April last year with the FBT exemption. Great car. But if you don’t need a ute, go full electric for the FBT exemption. Put it in a novated calculator and you’ll see the payment difference is crazy. Also, you need to travel less than 90ish kilometres a day most of the time for it to be super cheap to run and no fuel needed.
 
The BYD is a hybrid, so it does not qualify for a fringe benefits tax exemption. Given the amount you appear to be spending, it will probably still be quite thirsty.

I moved to a BYD Seal Performance as my daily, and at current fuel prices and kilometres travelled, I am saving around $250 a week. It is also out of business with no FBT.

Probably $16k better off per annum.
 
I bought a shark through my business for my own use, as I was weary of driving a work van all the time.
We recently obtained a loan for our business for it.

It is a hybrid, not an EV. However, if you’re driving under 80kms per day and can charge fully each day, then you can go weeks or even monhts without filling up. I last fuelled up mine before the fuel crisis and currently still have half a tank left.
 
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