Chinese automotive brand pair Omoda Jaecoo has signed a new novated leasing partnership with salary packaging provider Smartgroup, allowing customers to access leasing options directly through its Australian dealership network.
The arrangement will allow dealers to quote novated lease packages for customers nationwide, rather than directing buyers to external leasing providers.
Novated leasing has become an increasingly popular pathway for Australians buying electric vehicles, particularly since the federal government introduced an exemption from the Fringe Benefits Tax (FBT) for eligible battery electric vehicles priced below the luxury car tax threshold.
Under the new arrangement, all Omoda and Jaecoo vehicles sold in Australia will be available through novated leasing, while the recently launched Jaecoo J5 EV also qualifies for the FBT exemption, which can significantly reduce the effective cost of ownership for eligible buyers using salary packaging.
While novated leasing options for Jaecoo vehicles were already available through Smart late last year – including for the Jaecoo J7 and Jaecoo J8 SUVs, the new agreement brings the offering directly into Omoda Jaecoo’s dealership network, which now includes around 50 locations nationwide.
Salary packaging providers have become an important channel for electric vehicle sales in Australia, as the FBT exemption can substantially lower the monthly cost of EV ownership compared with petrol or diesel vehicles.
New entrants to the Australian market have increasingly leaned on novated leasing partnerships to improve affordability and attract buyers in what is an increasingly competitive EV market.
Joshua S. Hill is a Melbourne-based journalist who has been writing about climate change, clean technology, and electric vehicles for over 15 years. He has been reporting on electric vehicles and clean technologies for Renew Economy and The Driven since 2012. His preferred mode of transport is his feet.