Brokers tap into growing consumer appetite for sustainable car financing options
Mortgage aggregator LMG has reported a 65% increase in novated lease referrals over the past year, driven by growing interest in electric and plug-in hybrid vehicles and boosted by its Asset Finance Exchange (AFX) platform.
Launched in October, AFX has enabled more mortgage brokers to access the novated leasing sector, with the federal government's Fringe Benefits Tax (FBT) exemption for low and zero-emission vehicles playing a major role in rising demand.
“The introduction of the FBT exemption opened the door for more Australians to consider EVs and PHEVs, and brokers are now well-placed to help clients take advantage of these savings,” said Jordan Mutton (pictured above left), general manager of AFX. “Through AFX, brokers can seamlessly refer clients for novated leases, expanding their services and growing their businesses without adding complexity.”
Recent data shows plug-in hybrid sales have doubled in 2024, with 23,162 units sold. The BYD Sealion 6 led PHEV sales with 6,198 vehicles delivered. Demand is expected to remain high ahead of the March 31, 2025, deadline for the PHEV FBT exemption.
Simon Southwell (pictured above right), chief executive of Positive Salary Packaging, said more EV options have entered the market, reshaping buyer behaviour.
“We’ve seen a broader range of EVs enter the Australian market, with more affordable options like BYD and MG EV boosting demand,” he said. “While Tesla’s popularity dipped in 2024, the overall EV market has surged.
“As we approach the PHEV exemption deadline, we’re seeing a continued push in plug-in hybrid sales and expect a rise in EV demand to follow in the latter stages in 2025, supported by the ongoing FBT exemption for zero-emission vehicles.”
More than 40 new EV models are expected to arrive in Australia by the end of 2025, creating further opportunities for brokers to expand their offering through novated leasing solutions.
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