The Barefoot Investor has warned Aussies not to be lured in by the immediate savings of an electric vehicle, arguing drivers will be left worse off in the long run. 

Pape admitted he was recently forced to consider switching to an EV after his latest petrol bill for his Toyota V8 ute.

'At the peak of the oil crisis it was costing me $310 to fill the thing,' he said. 

He revealed his wife made the switch and loves her EV, but Pape said he found it 'stressful' due to the constant alerts. 

'Too close to the lines? Ding! Eyes off the road? Ding!' he said.

'All it's missing is, 'I wouldn't have done it that way.'

But his biggest concern is financial, particularly around the federal government's EV leasing incentives, which have been promoted as a major saving opportunity.

He cited an ABC report that previously described the policy as 'an amazing secret deal', claiming drivers could save thousands annually through tax breaks.

'The government says it can save you $5,000 a year,' Pape said. 'Sweet tax break.'

However, he said the benefits come with strings attached, particularly when it comes to depreciation.

'Terms and conditions apply,' including the bit where your EV ends up worth half what you paid for it at the end of the lease,' he said.

Pape warned the growing popularity of the scheme has already driven up its cost.

'That's exactly why it's blown out tenfold, costing taxpayers $1.4billion this year alone,' he said.

The Albanese government introduced major EV subsidies through a zero per cent Fringe Benefits Tax (FBT) exemption, saving buyers roughly $5,000–$12,000 per year. 

However, the scheme drew criticism for its rising cost, blowing out to billions of dollars and favouring higher-income earners.

Treasurer Jim Chalmers announced the scheme would be scaled back in the May budget.  

From 2027, only EVs under $75,000 keep the full exemption, while pricier models lose benefits. 

By 2029, all EVs will shift to a 25 per cent tax discount instead of full exemption, saving the budget around $1.7-$1.9 billion.

He also flagged a looming oversupply of second‑hand electric vehicles as leases expire.

'Most of these cars are leased and will be dumped on the market in three to five years,' he said.

Pape compared EV ownership to buying consumer electronics, where rapid technological change erodes value quickly.

'Buying an EV is like buying a phone,' he said. 'The first owner gets the tax break. The second owner gets the bargain.'

He backed up the comparison with a recent experience trading in an old device.

'I tried to trade in my perfectly functional iPhone 13 mini,' he said. 

'The guy offered me a used phone case and $80 cash.'

Despite the push toward electric vehicles, Pape said Australians should look beyond upfront savings and consider long‑term costs.

'The numbers can look great upfront,' he said. 'But you need to think about what happens at the end.'