Short answer: Businesses buying an electric or hybrid vehicle typically use the same finance structures as any other business vehicle, chattel mortgage or hire purchase, so the business owns the vehicle, claims applicable GST credits and depreciates the asset. The main differences to think through are battery-related resale value, charging infrastructure costs, and state-based incentives that can change the numbers.
Electric and hybrid vehicles are no longer a niche request from environmentally conscious buyers. Delivery fleets, trade businesses and professional services firms are all weighing up EVs and hybrids as part of ordinary fleet renewal, often for running cost reasons as much as anything else. Financing one for the business is not radically different to financing a petrol or diesel vehicle, but a few things are worth thinking through before signing.
What finance structures apply to an EV or hybrid bought for business use?
Chattel mortgage and hire purchase remain the standard structures for a business buying an EV or hybrid outright, in the same way they apply to a petrol or diesel vehicle. Under a chattel mortgage, the business takes ownership from delivery, claims the GST credit on the purchase price where GST registered, and depreciates the vehicle over its effective life. Under hire purchase, the financier holds title until the final payment while the business generally still claims depreciation and interest.
This article is specifically about financing an EV or hybrid that the business owns and uses, not about novated leasing, which is a separate salary-packaging arrangement between an employer, an employee and a financier. If a business is weighing up offering EVs to staff through salary packaging rather than purchasing vehicles outright, that is a different product with its own considerations, and it is worth speaking to a specialist about how that structure works before assuming it applies here. Our guide to what a chattel mortgage is covers the ownership mechanics that apply to a business-owned EV.
How does battery health affect financing and resale value?
One of the genuine differences between financing an EV and financing a conventional vehicle is uncertainty around battery degradation and its effect on resale value at the end of the finance term. Battery technology and manufacturer warranties have improved considerably, but the second-hand EV market in Australia is still relatively immature compared to the used market for petrol and diesel vehicles, and resale values can be harder to predict with confidence.
This matters most where a balloon payment is being considered, since the balloon assumes the vehicle will be worth a certain amount at the end of the term. Some lenders take a more conservative approach to balloon sizing on EVs for this reason, or ask more questions about the specific model’s battery warranty and expected retention of value. Our explainer on how balloon payments work is worth reading before finalising a term and balloon structure on an EV.
Can charging infrastructure be included in the finance?
Businesses running EVs, whether a single vehicle or a small fleet, often need to install charging infrastructure at their premises, and this cost can be significant depending on the number of chargers and any electrical upgrade required. Some lenders will consider financing charging infrastructure alongside the vehicle or as a separate business equipment facility, though this depends on the lender and the nature of the installation. It is worth raising infrastructure costs at the same time as the vehicle finance conversation, rather than treating them as entirely separate purchases, since bundling can sometimes simplify the overall arrangement.
Are there tax or incentive considerations specific to EVs?
Depreciation and the instant asset write-off generally apply to an EV or hybrid the same way they apply to any other eligible business vehicle, subject to the usual thresholds and business-use tests. Some states offer stamp duty concessions or exemptions for eligible electric vehicles, and eligibility criteria change over time, so it is worth checking current settings with your accountant or via the Australian Taxation Office rather than relying on last year’s rules. Luxury car tax thresholds also differ for fuel-efficient vehicles, including many EVs and hybrids, which can affect the total on-road cost for higher-value models.
None of these settings should be assumed to apply automatically. Incentive schemes, thresholds and exemptions change with policy updates, and what applied when a colleague bought their EV two years ago may not apply today.
What does an indicative EV finance comparison look like?
The table below compares indicative finance features between a business-owned EV and a comparable petrol vehicle, to illustrate where the main differences typically sit.
| Feature | Business-owned EV | Comparable petrol vehicle |
|---|---|---|
| Finance structure available | Chattel mortgage or hire purchase | Chattel mortgage or hire purchase |
| GST credit on purchase | Generally claimable, subject to registration | Generally claimable, subject to registration |
| Balloon sizing approach | Some lenders more conservative given resale uncertainty | Typically based on well-established resale data |
| Charging or fuel infrastructure | May require charger installation, sometimes financeable | Not applicable |
| Stamp duty treatment | May attract state concessions, varies by state and eligibility | Standard stamp duty generally applies |
Figures are indicative only and will vary by lender, asset and applicant. Confirm current incentive settings with your accountant.
Is an EV or hybrid the right choice for a business fleet?
The right answer depends heavily on how the vehicle will be used. Businesses with predictable, shorter daily routes and access to charging infrastructure, such as metro delivery, trade work within a defined service area or professional services with pool cars, often find EVs and hybrids suit well. Businesses with long, unpredictable routes or limited charging access on the road may find a hybrid, or simply a well-chosen petrol or diesel vehicle, remains the more practical option for now.
For businesses running a mixed fleet, it can also be worth thinking about how EVs and hybrids fit alongside existing utes, vans and passenger vehicles. Our page on fleet finance covers coordinating finance across a fleet with different vehicle types, and our business vehicle finance page sets out the general finance options available across our lender panel.
TYG Finance can talk through the finance structure for an EV, hybrid or mixed fleet purchase, including how balloon sizing and charging infrastructure fit into the arrangement. Contact TYG Finance to discuss a specific vehicle or fleet plan.
Frequently Asked Questions
Is financing an EV for business different to financing a petrol vehicle?
The core structures, chattel mortgage and hire purchase, are the same. The main differences typically relate to balloon sizing given resale value uncertainty, and whether charging infrastructure needs to be considered alongside the vehicle.
Can a business finance a hybrid vehicle the same way as a fully electric one?
Yes, hybrids are financed through the same structures as EVs and petrol vehicles. Lenders may take a different view of resale value depending on the specific model and its market history.
Does an EV purchase qualify for the instant asset write-off?
EVs and hybrids are generally eligible on the same basis as other business vehicles, subject to the applicable thresholds, business-use requirements and current ATO settings. Confirm current thresholds with your accountant before purchase.
Can charging infrastructure be financed alongside the vehicle?
Some lenders will consider financing charger installation as part of the same facility or as a separate business equipment loan, depending on the scope of the installation. It is worth raising this at application stage.
Are stamp duty exemptions for EVs still available?
Some states offer concessions or exemptions for eligible electric vehicles, though eligibility and availability change with policy updates. Check current settings for your state before assuming a concession applies.