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Tesla Model 3 or MG4? Choosing the Right Electric Car for Your Novated Lease

Electric vehicles (EVs) have become an increasingly popular choice for Australian drivers, thanks to their environmental benefits, lower running costs, and government incentives. For those considering a novated lease, choosing the right EV is crucial to ensuring a cost-effective and enjoyable driving experience. Two standout options in Australia’s EV market are the Tesla Model 3 and the MG4. Each offers unique features and advantages, but which is better for your novated lease? Let’s explore both vehicles to help you make an informed decision.

Why Choose a Novated Lease for Your Electric Car?

Before diving into the specifics of the Tesla Model 3 and MG4, it’s important to understand the advantages of a novated lease for EVs. A novated lease allows you to salary sacrifice the cost of your car, using pre-tax income to cover lease payments. This arrangement lowers your taxable income, making EV ownership more affordable.

In addition, recent Australian tax exemptions, such as the Fringe Benefits Tax (FBT) waiver for eligible EVs, have made novated leases even more attractive for those looking to switch to electric vehicles.

Tesla Model 3: A Premium Choice

The Tesla Model 3 has long been a leader in the EV market, offering advanced technology, impressive range, and sleek design. Here’s why it might be the right choice for your novated lease:

Performance and Range

The Tesla Model 3 is available in several variants, each delivering impressive performance. The Long Range model, for instance, offers an electric range of up to 602 km (WLTP), while the Performance model accelerates from 0–100 km/h in just 3.3 seconds.

For Australians who travel long distances, the Model 3’s extensive range and access to Tesla’s Supercharger network make it a reliable option.

Advanced Technology

Tesla is renowned for its cutting-edge technology, and the Model 3 is no exception. Features like Autopilot, over-the-air software updates, and a minimalist interior with a large touchscreen display provide a futuristic driving experience.

Resale Value

Tesla vehicles tend to hold their value well, which is an important consideration when entering a novated lease. At the end of your lease term, the higher residual value of a Tesla Model 3 could make it a more cost-effective option if you choose to buy the car outright.

Environmental Impact

With a strong focus on sustainability, Tesla’s production processes and battery recycling initiatives align with the values of environmentally conscious drivers.

MG4: An Affordable and Practical Alternative

The MG4, a newer entrant in the Australian EV market, offers a compelling combination of affordability, practicality, and efficiency. Here’s why it’s a strong contender for your MG4 novated lease:

Affordability

One of the standout features of the MG4 is its competitive pricing. Positioned as a budget-friendly EV, it offers excellent value for money, making it an ideal option for those seeking a cost-effective novated lease.

Practical Range

The MG4 may not have the extended range of the Tesla Model 3, but it offers a respectable range of up to 435 km (WLTP). For urban commuters and those with shorter driving requirements, this range is more than sufficient.

Comfort and Features

The MG4 comes equipped with modern features, including a digital cockpit, advanced driver-assistance systems, and a spacious interior. Its compact design makes it ideal for city driving while still providing ample room for passengers and luggage.

FBT Exemption Eligibility

The MG4’s affordability often places it well within the FBT exemption price threshold for EVs in Australia. This makes it an even more appealing option for those looking to maximise tax savings with a novated lease.

Warranty and Support

MG offers an extensive 7-year warranty on the MG4, providing peace of mind for Australian drivers. This long warranty period can further reduce maintenance concerns during the lease term.

Tesla Model 3 vs MG4: Key Comparisons

To help you decide between the Tesla Model 3 and MG4 for your novated lease, here’s a side-by-side comparison:

FeatureTesla Model 3MG4
PricePremiumBudget-friendly
Range (WLTP)Up to 602 kmUp to 435 km
PerformanceHigh-performance options availablePractical for everyday use
TechnologyAdvanced features (e.g., Autopilot)Standard features for modern driving
Warranty4 years/80,000 km7 years/unlimited km
FBT ExemptionEligible for certain variantsLikely eligible for all models
Charging NetworkExtensive Tesla Supercharger networkCompatible with public charging points

Factors to Consider

When deciding between the Tesla Model 3 and MG4 for your novated lease, consider the following factors:

  • Budget

If affordability is your primary concern, the MG4 offers excellent value without compromising on essential features. However, if you’re willing to invest more for advanced technology and performance, the Tesla Model 3 is a worthwhile choice.

  • Driving Needs

For long-distance drivers, the Tesla Model 3’s extended range and Supercharger network provide unmatched convenience. On the other hand, the MG4 is ideal for city dwellers and those with moderate commuting distances.

  • Tax Savings

Both vehicles are likely to qualify for the FBT exemption, but the MG4’s lower price point may provide additional savings.

  • Resale Value

If you plan to purchase the car at the end of your lease, the Tesla Model 3’s strong resale value could offset its higher upfront costs.

Conclusion

Choosing between the Tesla Model 3 and MG4 for your novated lease ultimately depends on your budget, driving habits, and personal preferences. Both vehicles offer unique advantages, from the Tesla Model 3’s cutting-edge technology and performance to the MG4’s affordability and practicality.

If you’re looking for a premium experience and plan to drive long distances, the Tesla Model 3 is a fantastic option. Alternatively, if you want a budget-friendly EV that still delivers on comfort and functionality, the MG4 is an excellent choice.

With government incentives, tax savings, and flexible novated lease options available in Australia, now is the perfect time to make the switch to an electric car. Evaluate your needs, test drive both models, and consult with a leasing provider to find the best fit for your lifestyle. Whichever you choose, you’ll be contributing to a greener future while enjoying the many benefits of EV ownership.

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