Is 2026 the Year to Shift to EVs? Why Now Is the Smartest Time to Make the Move and Finance It Right
- Kevin Leong
- Apr 22
- 3 min read
If you’ve filled up your car recently, you’ve likely felt it.
With petrol prices pushing toward $3 per litre, the cost of driving in Australia is no longer a background expense, it’s becoming a strategic financial consideration for households and businesses alike.
In the current economic environment, one trend is becoming increasingly clear:
Efficiency is no longer optional. It’s essential.
This shift is one of the key reasons electric vehicles (EVs) have moved from early adoption to mainstream consideration. And more importantly, why the decision to finance an EV well matters just as much as the vehicle itself.
EVs vs Petrol: The Cost Equation Has Flipped
The economics of EV ownership are becoming increasingly compelling.
According to the 2025 EV Ownership Survey:
More than 70% of EV owners report saving over 60% on fuel costs
Electricity can be up to four times cheaper per kilometre than petrol
With fuel prices now approaching $3 per litre, these savings are no longer marginal, they’re material.
When combined with:
Significantly lower maintenance costs (often under $300 annually for many owners)
Fewer servicing requirements
More predictable running costs
EVs are increasingly being viewed through a total cost-of-ownership lens, rather than just upfront price.
More Choice, Lower Prices, Mainstream Adoption
EV adoption in Australia is accelerating rapidly.
More than 150 EV models are now available locally
Entry-level pricing has fallen to approximately $29,990
The average EV price has decreased from around $70,000 in 2024 to $63,000 in 2025
At the same time, EVs now account for 11.8% of new car sales (Feb 2026), a clear signal that adoption is moving beyond early adopters and into mainstream purchasing behaviour.
Concerns around charging infrastructure and range are also diminishing as ownership becomes more widespread.
The Hidden Advantage: EV Finance Discounts
Interest rate discounts of 0.5%–1.0% on EV loans
Rates starting from around 6.44%
The Game-Changer: FBT Tax Savings (For Now)
Australia currently offers a Fringe Benefits Tax (FBT) exemption for eligible EVs.
No FBT applies
Payments can be made using pre-tax income
Running costs can also be packaged
Potential savings: $8,000–$12,000+ per year.
But the clock is ticking...
Plug-in hybrid vehicles lost FBT exemption in April 2025
Only eligible full battery EVs remain included
A government review is scheduled by 2027
In other words, the current policy environment may not remain unchanged.
Why Businesses Need to Act Now
For business owners and fleet operators, EV adoption is increasingly being driven by strategy rather than sentiment.
Key considerations include:
Locking in current tax advantages before policy changes
Enhancing employee benefit offerings in a competitive labour market
Transitioning fleet strategy toward lower long-term operating costs
For many organisations, EVs are now part of broader cash flow and tax efficiency planning, not just procurement decisions.
How Lendcap Helps
At Lendcap, we work with clients and their advisors to ensure EV finance is structured with long-term outcomes in mind.
This includes:
Access to competitively structured EV lending solutions
Guidance on leveraging available FBT benefits
Scenario analysis (buy now vs wait considerations)
Tailored finance structures aligned with cash flow and tax position
Final Thoughts
EVs are no longer just about sustainability, they’re about financial efficiency.
Right now, the numbers have never stacked up better. But the opportunity window is closing.
Thinking about making the switch? Let Lendcap show you how to structure your EV finance the smart way.
General Advice Disclaimer
The information provided in this article is general in nature and does not take into account your personal objectives, financial situation, or needs. It should not be considered financial, tax, or legal advice. You should seek professional advice tailored to your individual circumstances before making any financial decisions.
To understand what options may be suitable for your situation, book a consultation with Lendcap today.
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