How much does it cost to lease a Tesla?

The cost of a Tesla will depend on what type of Model 3 or Model Y you choose. They range in price from just over $58,000 to close to $83,000. There are other costs to factor in, like the novated leasing fees or rates. The leasing cost will also depend on whether you choose fully maintained leasing or non-maintained leasing. Fully maintained novated leasing comes with the costs of servicing and insurance included. When you take into account the savings on income tax however, you can end up paying less than the original purchase price.

What happens if I change my mind about wanting to drive a Tesla?

It's a good idea to arrange a test drive of the vehicle first, because changing cars mid-lease is less easy than you might think. You can't simply swap cars during a novated lease period. You would need to end your existing lease by making the remaining payments and then starting a new lease. Early termination fees may be applicable in this instance.

What happens if I change my employer during a novated lease?

If you leave your employer, the responsibility of the lease remains with you. You may be able to choose to leave the lease early or you may be able to take the lease with you to a new employer or repay yourself out of pocket.

What happens if I damage or write off the car?

With a fully maintained novated lease you should have been paying insurance costs as part of the lease payments. The insurance here would ideally cover the cost of any damage. With a non-maintained novated lease, you would be in charge of the insurance costs. The first thing to do after an accident is call your insurance provider to see if your insurance covers the cost. If the car is written off, the leasing company would still need to be paid the remaining amount of the lease.

Novated leasing for Tesla

With a novated lease you can use your pre-tax salary to pay to drive a Tesla. This means you pay less income tax.
Electric vehicles like Tesla also come with additional tax benefits. Eligible electric cars are exempt from fringe benefits tax (FBT), so the employer doesn't have to pay FBT on them.
Once your novated lease comes to an end, you can choose to start a new lease or buy the car outright.

What is novated leasing?

With a novated lease, you'll be able to sacrifice a portion of your salary to make payments towards leasing a vehicle.

Importantly, those payments come from your pre-tax salary. This means you end up paying less tax!

The novated leasing agreement is between yourself, your employer and a third party leasing company.

Your employer agrees to pay for the leasing costs directly and they then recoup the costs from your salary.

Can I use a novated lease to drive a Tesla?

Novated leasing is a great option for anyone wanting to drive an electric vehicle.

Not only does it allow you to drive away with a Tesla without committing to the upfront cost, but there are also huge tax benefits that come with leasing an EV.

When it comes to electric vehicles, many people are keen to drive a Tesla. You can typically take out a novated lease to drive both a Tesla Model 3 and Tesla Model Y.

What are the benefits of leasing a Tesla?

The benefits of leasing a Tesla are generally the same for any electric vehicle:

For the employee

Cost and tax benefits. If you've been nervous about the cost of a Tesla, this is a cost-effective option which also saves you money on tax! You may also benefit from corporate fleet discount programs that can reduce the retail price of a vehicle.
Easy loan management. With the payments coming out of your salary before you even see it, you don't have to worry about managing the costs yourself.
After-lease sale benefits. Depending on whether you own the car at the end of the lease agreement, if you sell your vehicle after the lease is up, any profit from the sale will be tax-free.
No usage restrictions. There are no limitations on the way you use the vehicle, and you can use it for business or personal use as much as you like.

For the employer

No fringe benefits tax. Eligible electric vehicles and their associated costs are exempt from fringe benefits tax (FBT). Fuel-efficient vehicles, including EVs, also have a higher luxury car tax threshold.
A way to offer incentives. A novated lease is a way to incentivise employees with little expense to your business.
Limited risk. You won't be responsible for the vehicle if your employee leaves before the lease is up.
Not attached to the business. Novated leases are not considered an asset or liability of the business.
You don't need to arrange a company fleet. Novated leases are a way for your employees to access discounted vehicle leasing through your company without the burden of your business managing a company fleet.

The tax benefits of novated leasing a Tesla

Reduces income tax

Regardless of whether you're leasing an electric vehicle or another vehicle, the benefit of novated leasing is that it comes from your pre-tax salary. This reduces the amount of income tax you pay. You may even find that the lease payments end up bringing you down into the next tax bracket.

Exempt from FBT

Battery electric vehicles like Tesla can be exempt from fringe benefits tax (FBT) if the car was first held and used on or after 1 July 2022 and no luxury car tax has ever been payable on it. Plug-in hybrids no longer qualify, apart from some arrangements made before 1 April 2025. Normally, a benefit like novated leasing is a 'fringe benefit'. A fringe benefit is a non-monetary benefit that the employer gives the employee, but they still need to pay tax on. With an eligible electric vehicle, the employer doesn't need to pay FBT.

Higher luxury tax threshold

Electric vehicles also have a higher threshold when it comes to luxury car tax. For the 2026-27 financial year, luxury car tax doesn't apply to fuel-efficient vehicles, including EVs, with a luxury car tax value of $91,661 or less. For other cars, the threshold is $80,809.

What Tesla can I lease?

In Australia, you can choose to lease a Tesla Model 3 or a Tesla Model Y through novated leasing.

These are the different versions of these models that are available:

Tesla Model 3 Rear-Wheel Drive
Tesla Model 3 Long Range
Tesla Model 3 Performance
Tesla Model Y Rear-Wheel Drive
Tesla Model Y Long Range
Tesla Model Y Performance

What are my options for leasing a Tesla?

There are several companies that offer novated leasing for Tesla in Australia. If you are salary sacrificing through your employer, it might be that your employer already has an agreement with a novated leasing company. You should check with them first to see what arrangement they have.

You also have the option of going direct to Tesla and organising a 'self-arranged novated lease'.

When you choose your novated lease, you will also have the option of a non-maintained novated lease or a fully maintained novated lease.

Can I keep my Tesla at the end of the lease?

Once your lease has ended you have a couple of main options:

End that lease and start a new one.
Pay off the rest of the repayments to buy the car.

If you still need to use a car and will remain employed, it may be worth starting a new lease. That's because novated leasing is the most cost effective way to have a car.

See our complete guide on what to do once your novated lease has ended.

Frequently asked questions about Tesla novated leasing

The cost of a Tesla will depend on what type of Model 3 or Model Y you choose. They range in price from just over $58,000 to close to $83,000.
There are other costs to factor in, like the novated leasing fees or rates. The leasing cost will also depend on whether you choose fully maintained leasing or non-maintained leasing. Fully maintained novated leasing comes with the costs of servicing and insurance included.
When you take into account the savings on income tax however, you can end up paying less than the original purchase price.
It's a good idea to arrange a test drive of the vehicle first, because changing cars mid-lease is less easy than you might think.
You can't simply swap cars during a novated lease period. You would need to end your existing lease by making the remaining payments and then starting a new lease. Early termination fees may be applicable in this instance.
With a fully maintained novated lease you should have been paying insurance costs as part of the lease payments. The insurance here would ideally cover the cost of any damage.
With a non-maintained novated lease, you would be in charge of the insurance costs. The first thing to do after an accident is call your insurance provider to see if your insurance covers the cost.
If the car is written off, the leasing company would still need to be paid the remaining amount of the lease.

Finder writers are subject matter experts and use primary sources, in-depth research and interviews with other experts to ensure you're getting accurate, up-to-date information. Articles are fact checked in line with our editorial guidelines.

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Written by

Rebecca Pike

Editor, Money

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Rebecca Pike is Finder’s money editor, with over 7 years of experience in mortgages and personal finance. A frequent TV and radio commentator, she frequently appears on Sunrise and 7News, Today and 9News, as well as Sky News, Channel 10 and across radio and print. Rebecca previously served as Editor of Mortgage Professional Australia. She has a Master’s degree in Journalism as well as ASIC-recognised certifications in Tier 1 Generic Knowledge and Tier 2 General Advice Deposit Products, which comply with ASIC guidelines. See full bio

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Novated leasing for Tesla

If you fancy driving away with a Tesla and paying less tax, novated leasing might be the best option for you.