Quick answer
Electric fleet vehicles are financed with the same structures as petrol and diesel ones — chattel mortgage, finance lease or hire purchase — secured by the vehicle. The differences are in the planning: charging equipment, range on your real routes, uncertain resale values that affect balloons, and tax rules. The ATO says eligible electric cars are exempt from FBT, while plug-in hybrids lost that status from 1 April 2025.
Key points
- EVs are financed with the same structures as other business vehicles.
- The ATO says eligible electric cars are exempt from FBT; plug-in hybrids generally aren't from 1 April 2025.
- Resale values for EVs are less settled, so be cautious with large balloons.
- Workplace charging equipment may need to be financed separately from the vehicle.
- Structures
- Chattel mortgage, finance lease, hire purchase
- Vehicles
- Electric cars, vans and utes; hybrids
- Tax watch-point
- FBT treatment differs for EVs and PHEVs
- Planning tool
- Green Vehicle Guide for running-cost comparisons
More Australian businesses are adding electric cars, vans and utes to their fleets — sometimes to cut running costs, sometimes because a large client asks about emissions, and sometimes because staff want them. Financing an electric vehicle isn’t hard. Planning it well takes a few extra questions that a diesel van never raised.
Is EV finance any different?
Structurally, no. Electric vehicles are financed with the same options as any other business vehicle: a chattel mortgage where your business owns the vehicle, a finance lease where the lender owns it and you pay to use it, or hire purchase where ownership passes on the final payment. Lenders look at the same things — your trading history, bank statements and the vehicle’s value.
Where EVs differ is everything around the finance: charging, range, resale and tax.
Will it actually do the job?
Before signing anything, test the vehicle against your real work, not the brochure:
- Daily distance. Map your longest typical day, including detours, and compare it with real-world range in your conditions. Heat, cold, heavy loads and highway speeds all reduce it.
- Payload and towing. Battery weight can eat into payload on vans and utes. Check the figures if you carry heavy tools or stock.
- Where it charges. Overnight at the depot, at a staff member’s home, or on the road? Each has a cost and an admin process.
- Downtime. Charging stops on long days cost time, and time is billable hours.
The government’s Green Vehicle Guide lets you compare models’ energy use and emissions, which helps when you’re building a running-cost comparison.
What about fringe benefits tax?
This is where EVs can be attractive for cars that staff take home. The ATO says you don’t need to pay FBT on eligible electric cars, and the exemption also covers associated car expenses. Plug-in hybrids are a different story: from 1 April 2025, the ATO says a plug-in hybrid is no longer considered a zero or low emissions vehicle for FBT, so it isn’t eligible for the electric cars exemption — except in limited cases where the vehicle was already provided and there was a binding commitment before that date.
Eligibility has conditions, so your accountant should confirm how the rules apply to your vehicles and staff before you choose between an EV, a hybrid and a conventional model.
How should you handle balloons on electric vehicles?
A balloon assumes you know roughly what the vehicle will be worth at the end of the term. For established diesel utes and vans, there’s decades of resale history to lean on. For electric commercial vehicles, values are still settling as battery technology changes and more models arrive.
That doesn’t rule out a balloon, but it argues for caution. A smaller balloon — or none — reduces the chance of owing more than the vehicle is worth when the term ends. Use the fleet cost planner to compare how much of the loan you pay down at different balloon settings, and read balloon payments explained for the wider trade-offs.
Can the chargers be financed too?
| Item | How it’s usually handled |
|---|---|
| Portable charging cable supplied with the vehicle | Included with the vehicle |
| Wall charger supplied and invoiced by the dealer | Often included if on the same invoice |
| Depot charging installed by an electrician | Usually separate equipment finance or working capital |
| Switchboard or electrical upgrades | Usually separate — get quotes early |
If depot charging is part of the plan, raise it at the start. It’s easier to structure the vehicles and the equipment together than to discover a gap after the vans arrive. If you’d like a view on the whole package, start an enquiry and we’ll talk it through.
How do lenders view electric vehicles?
Lenders generally finance new and late-model electric vehicles from established manufacturers in the same way as conventional vehicles. Where they can be more conservative is with older used EVs, less common brands and models with limited local service networks, because those are harder to value and resell. Battery condition is increasingly part of the conversation on used EVs, so ask the seller for any battery health report available.
Building a fair running-cost comparison
An EV usually costs more to buy and less to run. Whether it works out cheaper depends on your kilometres and where you charge. Compare models over the whole time you’ll keep them:
| Cost line | What to compare |
|---|---|
| Energy | Electricity at depot or home rates versus fuel, at your real kilometres |
| Servicing | Scheduled service costs and intervals over the term |
| Tyres | EVs are heavier, so check tyre wear on your routes |
| Registration and insurance | Get actual quotes for the models you’re considering |
| Downtime | Charging time on long days versus refuelling |
| Resale | Be conservative — values are still settling |
Our guide to fleet total cost of ownership shows how to put these side by side.
Mixed fleets are normal
Few businesses switch everything at once. A common pattern is to start with pool cars or short-route vans, learn how charging fits the routine, then expand. Staggering the change also spreads the replacement cycle — see our guide on setting a fleet replacement cycle.
Ready to go electric?
Whether it’s one electric car for the owner or the first wave of electric vans, tell us what you’re planning. Enquiring won’t affect your credit file, your details stay with one specialist instead of being circulated, and a real person will call to work through the vehicles, charging and structure. Give us accurate details on the form — models, numbers and timing — so the first call is a productive one.
Frequently asked questions
Is financing an electric vehicle different from a petrol one?
The structures are the same. What changes is the planning: range on your actual routes, where vehicles will charge, and how confident you are about resale value if you add a balloon.
Are electric cars exempt from fringe benefits tax?
The ATO says FBT doesn't apply to eligible electric cars, and the exemption also covers associated car expenses. Plug-in hybrids aren't treated as zero or low emissions vehicles from 1 April 2025, apart from limited cases with pre-existing commitments. Ask your accountant how this applies to you.
Can charging equipment be financed with the vehicle?
Sometimes, if it's supplied and invoiced with the vehicle. Workplace chargers installed by an electrician are usually treated as separate equipment.
Should I put a balloon on an electric van?
Be careful. Resale values for electric commercial vehicles are less established than for diesel equivalents, so a smaller balloon — or none — reduces the risk of owing more than the vehicle is worth at the end.