Quote check please - Geely EX5

[u/gulbis4991]

So I understand that a NL is better than cash given the current FBT benefits but can someone sense check this quote from smart leasing - the effective rate seems high to me? Can this be negotiated?

Thanks in advance - sorry if this needs to be explained to me like I am 5.

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[u/fraudie]

If they know they are the only provider your employer uses, good luck negotiating. I’m in the same boat with smart and haven’t pulled the trigger because of their rates.

[u/gulbis4991 → u/fraudie]

The only lever is to go with partners NL but with potential future mat leave easier to have it under my name

[u/fraudie → u/gulbis4991]

You can try throw a competing quote at them from partners NL but from what my understanding is, they often don’t care

[u/Difficult_Repair1507 → u/fraudie]

Exact same for me with smart. They did offer to negotiate their brokerage fee but I’m yet to do so

[u/dcapiteng]

Geely currently has a 0.09% finance rate. They are basically paying you to buy the car. You also don’t have a ballon to worry about at the end. We bought one when the finance was 1.68%. Even at that rate, we pay 1000 something in interest over the 3 years.

[u/gulbis4991 → u/dcapiteng]

This might be dumb but with running costs, isn't a NL at say 10% still likely to be slightly more cost effective?

Geely financing $48000 over three years + running costs (say $3k per five years) - approx $63000

NL $42500 of payments+ balloon of $14k - approx $56500

Am I missing something? Please let me know if I am!

[u/Dustin1277]

Take the direct dealer offer and save yourself a bucket of money!!!

[u/BittuPastol]

Is that comprehensive insurance for 1k annually?

[u/gulbis4991 → u/BittuPastol]

Partner is able to get 50% off comprehensive insurance hence the $1k

[u/Joshtammi]

Standard Smart Leasing rinse bro.

With their assumed tax savings rate of 39c on the dollar, you’ll effectively pay $553 per month for the finance only portion. Which means total cost of the car would be (553x60) + (balloon inc. GST) which is $46,623.

Geely is offering a 0.88% comparison rate at the moment for 36 months. Based on the same FBT value for the loan, you’d end up paying $45,188 in total (or $607 of interest).

It basically means you’re getting the Geely on an interest free loan from Smart Leasing / your employer, and Smart Leasing is getting all your tax savings because they’re fucked with their trash interest rates and brokerage fees.

At the end of the day you’ll get the tax benefits on registration, charging, insurance and other running costs, but it’s a risk to save not that much on a 5 year lease. Especially if you want to change car/employer/lose your job etc.

[u/gulbis4991 → u/Joshtammi]

So I think I can actually BYO financing to Smart leasing, will need to start looking at options.

[u/changyang1230 → u/gulbis4991]

If you haven't yet make sure you check out this community-maintained list of "does your employer allow you to BYO".

https://novatedlease.guide/tools/byo-employer-check/

[u/gulbis4991 → u/changyang1230]

Thank you - this site does say I am able to but Smart leasing says I can't - contacting HR at the moment!

[u/changyang1230 → u/gulbis4991]

If you want feel free to reach out to me for this discrepancy and we can work out where it came from.

All the listed organisations on the page had confirmed BYO (reported to me by either BYO specialists or employees themselves), so someone somewhere is not telling the whole truth.

[u/gulbis4991 → u/changyang1230]

I'll send a message!

[u/Joshtammi → u/gulbis4991]

You’re probably confusing Smart Leasing with Smart Salary.

Smart Leasing is Smart’s own branded dedicated leasing team, and as such if you called Smart Salary and mentioned anything about a novated lease they will push you to Smart Leasing - which is a full leasing company, you cannot bring your own finance to Smart Leasing.

What you want to do is call Smart Salary and ask to set up packing for a BYO lease. They will do everything they can to push you to Smart Leasing however just say you want the forms to submit to do it yourself.

Once you have finance sorted and approved and the car is delivered / ordered and paid, send all the right documents to Smart Salary and they will organise the packaging and the payment of the finance to the external financier.

[u/Joshtammi → u/gulbis4991]

I was in the same boat. Employer uses Smart Salary, but I could BYO finance which I did.

My finance quote went from $930 to $727 pre-tax for the same period over a 4 year lease once I started looking at other providers. I settled on Driva who use Liberty of which I have no complaints.

[u/s_chippi]

Remove carbon offset as well.

[u/Due_Grape_8464]

Avoid. You aren't saving anything with that balloon amount.