Drive a pre-owned EV for less..
Most people don’t realise the FBT exemption applies to second-hand electric vehicles — not just new ones. A pre-owned EV through a novated lease can cost less out of your take-home pay than a brand-new petrol car bought on a standard loan.
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FBT-free Teslas in European fleet |
No GST on used vehicles — lower finance amount |
$0 deposit required — payments from pre-tax salary |
THE CASE
Why choose a pre-owned EV ?
The novated lease tax benefit is not limited to new cars. If you want to get into an EV without stretching to a new car price, a pre-owned vehicle through a novated lease is worth serious consideration.
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Same FBT exemption Eligible pre-owned EVs attract the same FBT exemption as new EVs.The tax saving is identical. |
No GST on used cars Private used car sales carry no GSTThat directly reduces your monthly lease payment and residual. |
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Lower purchase price Lower purchase price A pre-owned Model Y or BYD at two years old can cost $15,000–20,000 less than new. Combined with the novated lease tax benefit, the effective weekly cost can be surprisingly modest. |
Same running cost benefits Fuel, servicing, insurance, registration, and tyres can all still be bundled into the pre-tax package — exactly as they would be on a new car lease. |
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Access better spec The same pre-tax budget that would get you a base-spec new EV may reach a higher-spec pre-owned model. |
Depreciation already absorbed New cars lose the most value in their first two years. A pre-owned EV typically means a stronger residual value relative to the finance amount. |
How it works
The novated lease process for a pre-owned vehicle is virtually identical to a new car. Your employer instructs payroll, the lease provider manages the finance, and you drive the car. There are a couple of additional steps specific to used vehicles, but MisterGreen handles both on your behalf.
Find a vehicle
Browse our partner retailer links below or find a vehicle yourself. Note the registration, VIN, or listing URL.
MisterGreen will check FBT eligibility at no cost before you proceed.
Get a quote & apply
Request a quote via MisterGreen’s online platform. We run a valuation, confirm eligibility, and match your application to the best lender.
Contracts are signed digitally by you and your employer.
The lease payments and running costs are deducted from your pre-tax salary each pay cycle.
At the end of the term, you can re-lease, purchase the vehicle at the residual value, or return it
Already found a car?
If you’ve already found a pre-owned EV — on Carsales, from a private seller, or through a dealer — bring it to us. MisterGreen can run a free eligibility check and quote on any vehicle, not just those listed with our retail partners.
Which pre-owned EVs qualify?
The FBT exemption applies to eligible vehicles regardless of whether they are new or used. To qualify, the vehicle must meet all of the following conditions:
- Battery electric vehicle (BEV) — fully electric, not a standard hybrid or mild hybrid
- Priced under the luxury car tax threshold for fuel-efficient vehicles ($91,387 in 2025–26)
- First held and used on or after 1 July 2022 (the date the FBT exemption took effect)
- Used for the employee’s private purposes under the novated lease arrangement
What about plug-in hybrids (PHEVs)?
PHEVs first held and used before 1 April 2025 remain eligible for the FBT exemption. PHEVs first held after that date are no longer exempt. If you’re considering a pre-owned PHEV, MisterGreen will confirm the eligibility date before you proceed.
Popular eligible pre-owned models include Tesla Model 3, Tesla Model Y, BYD Atto 3, BYD Seal, Kia EV6, Hyundai Ioniq 5, and Polestar 2 — all of which are now available in meaningful volumes on the used market.
Where to find pre-owned EVs in Australia
MisterGreen works with vehicles sourced from any reputable retailer or private seller. The links below are a starting point for your search. Bring any vehicle you find to MisterGreen for a free eligibility check and quote.
Carsales
Australia’s largest new and used car marketplace. Filter by EV/Electric under fuel type.
www.carsales.com.au
Drive.com.au
Used EV listings with research tools and price guides.
www.drive.com.au
CarExpert
Trusted reviews and used car listings with strong EV coverage.
www.carexpert.com.au
Tesla Used
Tesla’s certified pre-owned inventory, sold with warranty. Inspect via the Tesla app.
www.tesla.com/en_au/used
If you find a vehicle through a private seller, MisterGreen can still structure a novated lease — we arrange the purchase via the lease financier, who then leases it back to you. This is a standard process and adds no significant complexity.
Pre-owned EV vs new petrol — illustrative comparison
The table below illustrates how a pre-owned EV on a novated lease compares to buying a new mid-size petrol SUV on a standard car loan. Based on $120,000 gross salary, 3-year term, 15,000 km/year, NSW.
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Pre-owned EV Novated lease |
New petrol SUV Standard car loan |
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Vehicle price (driveaway) |
$42,000 (2yr old EV) |
$52,500 (new petrol) |
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Finance rate |
7.5% |
7.5% |
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Term |
3 years |
3 years |
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Pre-tax benefit |
Yes — 39% saving on payments |
No |
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FBT payable |
$0 (exempt) |
N/A |
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Net monthly payment |
~$490 |
~$1,060 |
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Annual energy / fuel cost |
~$590 (pre-tax) |
~$2,390 (post-tax) |
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Annual servicing |
~$500 (pre-tax) |
~$1,120 (post-tax) |
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3-year total out-of-pocket |
~$21,600 |
~$54,800 |
Frequently asked questions
Does the FBT exemption really apply to used EVs?
Yes. The ATO’s FBT exemption for battery electric vehicles applies regardless of whether the vehicle is new or used, provided it was first held and used on or after 1 July 2022 and is under the luxury car tax threshold. MisterGreen confirms eligibility before proceeding with any application.
Can I choose any pre-owned EV I find myself?
Yes. You are not limited to vehicles from a specific retailer or dealer. If you find a car through Carsales, a private seller, or a dealer not listed here, MisterGreen can still structure the novated lease around that vehicle subject to standard lending criteria and FBT eligibility.
What condition standards apply?
Lenders will require the vehicle to be roadworthy and will typically not finance vehicles with odometers above 100,000–120,000 km, depending on the lender. MisterGreen will advise you on lender appetite for any specific vehicle before you commit to a purchase.
Is there a warranty on a pre-owned EV?
This depends on the source. Manufacturer-certified pre-owned programs (such as Tesla’s certified used inventory) carry a warranty. Dealer stock may carry a statutory warranty under Australian Consumer Law. Private sales carry no warranty beyond ACL rights. MisterGreen recommends a pre-purchase inspection for any private sale vehicle.
What happens if I leave my employer?
The novation transfers back to you. You become personally liable for the remaining lease payments. You can find a new employer willing to take on the novation, continue payments from post-tax income, or end the lease early subject to break costs. This applies identically to new and pre-owned vehicles.
Does my employer need to do anything extra for a used car?
No. From your employer’s perspective, a pre-owned novated lease is identical to a new one. The payroll deduction, instruction letter, and ongoing process are exactly the same.
Found a vehicle? Have questions? Get in touch.
FBT exemption subject to ATO eligibility conditions. Retailer links are provided for convenience only — MisterGreen does not endorse or warrant any third-party vehicle listings. General information only — not financial or tax advice.