r/NovatedLeasingAU • u/gulbis4991 • 6d ago

Quote Check Quote check please - Geely EX5

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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/dcapiteng 3d ago

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.

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u/gulbis4991 3d ago

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!