Cupra Tavascan V: What the New Entry Price Means for Your Novated Lease
Cupra has added a cheaper rear-wheel-drive Tavascan V to take on the Tesla Model Y and BYD Sealion 7. Here's what it means for novated lease buyers.
Cupra has quietly made its Tavascan electric SUV more accessible, introducing a new entry-level rear-wheel-drive variant — the Tavascan V — at a lower starting price than the existing all-wheel-drive models, according to EVcentral AU [Source 1]. The trade-off is reduced range and power compared to the top-spec twin-motor version, which is a familiar compromise in the EV market.
The move is clearly aimed at the heart of Australia's mid-size electric SUV segment, going head-to-head with the Tesla Model Y and BYD Sealion 7 — two vehicles that already sell strongly through novated leasing. Whether the Tavascan V can carve out real market share depends on how it stacks up on the full cost-of-ownership picture, not just the sticker price.
What this means for novated lease customers
If you're an Australian PAYG employee shopping for an EV on a novated lease, a lower entry price on the Tavascan V is genuinely interesting — but the headline figure isn't the whole story.
Here's why. Under Australia's current FBT exemption for eligible battery electric vehicles, a lower vehicle price typically means a lower taxable value base, which can translate to more favourable pre-tax salary packaging outcomes. That said, the real-world benefit depends on your income, the lease term, your residual, and the vehicle's running costs — not just what Cupra's pricing sheet says.
The Tavascan V's rear-wheel-drive setup and reduced range will suit plenty of urban and suburban drivers who don't need the extra grunt. But if you regularly do longer interstate runs, it's worth pressure-testing the range numbers against your actual usage before committing. A novated lease is a multi-year financial commitment — don't let a competitive entry price be the only thing that tips the decision.
Common questions
Is the Cupra Tavascan V eligible for the FBT exemption on electric vehicles?
Eligibility for the EV FBT exemption depends on the vehicle's drive-away price sitting below the luxury car tax threshold at the time of purchase, among other criteria. You'll want to confirm the Tavascan V's final on-road pricing before assuming it qualifies — your novated lease provider should verify this with you before you sign anything.
How does the Tavascan V compare to the Tesla Model Y and BYD Sealion 7 for novated leasing?
All three vehicles sit in a competitive segment and may be eligible for FBT-exempt novated leasing depending on their pricing. The right choice comes down to range requirements, residual values, and total running costs over your lease term — not just the purchase price.
Does lower range hurt the novated lease value proposition?
Not necessarily. If your daily driving is well within the Tavascan V's range capability, a lower-priced variant can actually work in your favour from a salary packaging standpoint. The key is matching the vehicle to your real usage, not the maximum range on the spec sheet.
Can I novate a Cupra Tavascan V right now?
If the vehicle is available for purchase in Australia and meets FBT exemption criteria, it can generally be structured as a novated lease. Get in touch with millarX to confirm eligibility and run the numbers against your specific salary and situation.