An Electric vehicle (EV) is no longer just a futuristic concept —it is now a practical and increasingly popular option for business fleets across Australia. But does an EV make sense for your company vehicle? Let’s explore the pros, cons, and key considerations when deciding whether to plug in and go electric.
⚡ Electric Vehicle Benefits
EVs offer some major benefits, especially when it comes to operating costs and environmental impact:
Lower Running Costs
One of the biggest attractions is reduced fuel costs. According to Budget Direct, electric vehicles cost between $2.84 to $7 per 100km to run, depending on the model and electricity prices in your state. This is significantly cheaper than petrol or diesel vehicles, where the average cost sits around $10 to $15 per 100km.
Zero Tailpipe Emissions
EVs are among the cleanest options on the road. The Australian Government’s Green Vehicle Guide consistently ranks electric cars at the top for environmental performance, thanks to their zero carbon dioxide emissions.
Smooth and Safe Driving Experience
EVs are known for being quiet, smooth to drive, and safer due to their lower centre of gravity, which improves stability and reduces rollover risk.
🚧 Electric Vehicle Drawbacks
While the benefits are compelling, there are still a few hurdles to consider:
Upfront Cost
EVs are generally more expensive to buy. For example, a Nissan Leaf starts at around $39,000, while a Tesla Model Y ranges from $65,000 to $75,000, depending on the model. You’ll need a larger loan, which is where a tailored low doc car loan can help business owners manage cash flow without the need for full financials.
Range Anxiety & Charging Access
Most EVs today have a range of 250–500km, which suits the majority of business trips. However, long-haul or regional travel may require planning around charging infrastructure. That said, more Australians are adjusting their habits—charging EVs overnight like a smartphone, rather than refuelling once a week.
Charging Infrastructure Still Growing
While EV infrastructure is expanding across Australia, it’s not yet fully developed in all regions. For example, Western Australia’s Electric Highway was an early success, but more national investment is needed to meet demand as EV adoption rises.
📊 Making a Smart Financial Move
Beyond environmental impact, EVs can also provide long-term financial advantages—especially when you factor in:
- Lower running and maintenance costs
- Government incentives (in some states)
- Potential tax benefits when using a vehicle for business
- Access to green finance deals — Some lenders offer lower interest rates for electric vehicles as part of their commitment to supporting sustainable choices.
If you’re considering an EV and operate as a sole trader, contractor, or small business, low doc car finance or a no doc car loan can make financing easier. You may also want to explore how best to manage your business car loan to ensure you’re maximising deductions and flexibility.
✅ So, Is an Electric Vehicle Right for Your Business?
If your business:
- Travels mainly short to medium distances
- Values low operating costs and environmental impact
- Is prepared for slightly higher upfront costs for long-term savings
…then an EV could be the perfect addition to your fleet.
On the other hand, if you operate in remote areas, need long-distance travel without charge stops, or prefer lower purchase prices, then a traditional vehicle may still be more practical—at least for now.
🚗 Need Finance for Your Next Electric Vehicle?
Whether you’re leaning toward electric or petrol-powered, AAA Finance can help you secure the right loan for your business. We offer access to over 40 lenders and specialise in fast, flexible low doc car loans designed for business owners.
If you are considering an electric vehicle for your company, it’s also worth understanding how buying through your ABN can offer extra savings — find out how financing a car for business use can benefit you.
👉 Get in touch today to find out how we can help power your next business vehicle purchase—electric or otherwise!
