Cupra Tavascan V: A Cheaper EV Option Worth Considering?
Cupra's new entry-level Tavascan V takes on Tesla Model Y and BYD Sealion 7. Here's what it means if you're eyeing an EV novated lease. Read more.
Cupra has added a new base variant to its Tavascan lineup — the Tavascan V — bringing the entry price down to compete more directly with the Tesla Model Y and BYD Sealion 7 in the mid-size electric SUV segment. The trade-off, according to EVcentral AU, is reduced range and power compared to the existing all-wheel-drive variants. That's a familiar formula: lower sticker price, but you're giving something up.
For anyone shopping with a novated lease, the entry price matters — but it's not the whole story. The drive-away figure, on-road costs, and how the vehicle sits within the FBT exemption framework for EVs all shape what you'll actually pay from your pre-tax salary.
What this means for novated lease customers
The Cupra Tavascan V is a rear-wheel-drive EV, which means it could qualify under Australia's current FBT exemption for eligible battery electric vehicles — provided the vehicle's value sits below the luxury car tax threshold at the time of delivery. That threshold is set by the ATO and indexed annually, so it's worth confirming where any specific vehicle lands before signing anything.
A lower entry price on the Tavascan V potentially brings it closer to that threshold, which is relevant. But 'potentially qualifies' is not the same as 'definitely qualifies' — model year, options, and on-road costs all affect the final figure used for FBT assessment purposes. If you're comparing the Tavascan V against a Tesla Model Y or BYD Sealion 7 on a novated lease, the vehicle price is just one input. Running costs, residual values, and how each brand holds its value over a three-to-five year term also matter.
The broader point: more affordable EV entry points entering the market is genuinely good news for PAYG employees who want to use a novated lease to access the FBT exemption. More competition means more choice at more price points — and that's not hype, it's just how markets work.
Common questions
Does the Cupra Tavascan V qualify for the EV FBT exemption?
It's a battery electric vehicle, so it may qualify — but eligibility depends on the vehicle's value relative to the ATO's luxury car tax threshold at the time of delivery. You should confirm the exact drive-away figure before assuming exemption applies.
How does the Tavascan V compare to a Tesla Model Y or BYD Sealion 7 on a novated lease?
On paper, all three are competing in a similar price and segment bracket. The novated lease numbers will differ based on drive-away price, residual value assumptions, and running cost estimates — not just the headline figure.
Is reduced range a problem for a novated lease vehicle?
That depends entirely on how you use the car. A novated lease typically runs three to five years, so think honestly about your daily driving needs and whether the Tavascan V's range covers them comfortably before committing.
Can I include charging costs in a novated lease for this vehicle?
Yes — for eligible EVs under a novated lease, certain running costs including charging can be bundled into your pre-tax salary payments. A millarX consultant can walk you through what's included.
What's the luxury car tax threshold for EVs?
The ATO sets and adjusts this threshold annually. You can check the current figure directly on the ATO website, or ask millarX to confirm whether a specific vehicle and configuration sits below it.