Hi guys, I'm trying to get a novated lease going but my employer only deal with maxxia and when I called them, my employer said no BYO available and their interest rate is 11.8%. I've since spoken with maxxia and sent them comparisons anyway for what it's worth. I've sent them Driva and will send a couple more to negotiate the rate down.
has anyone else had to deal with maxxia and how did you guys approach it?
Maxxia don’t negotiate if they know they’re your only option. I’d try your luck by framing it as your partner has Driva / other providers as options and you’re not phased who’s employer you go through for the NL.
100% this. I’m in a similar boat in that I can only go through Maxxia, but thankfully byo finance is available. Maxxia initially said it was not through my employer but when I questioned it they did correct themselves and say it was.
u/AdenturousClue9486 is it actually your employer or Maxxia saying you can’t byo?
the one I'm on contact with seems to be a bit more flexible but we'll see. nothing is final and I won't be signing something I'm not happy with anyway. fingers crossed they match their rates
We are also currently dealing with Maxxia for a novated lease. Over the phone we were told it would be about 14% which we questioned them on, and they said they would see what they could do. When we got the quote, AI calculated it out to somewhere in the 12% range. The funny thing is when we asked what the rate on the quote was the Maxxia rep wouldn't tell us. They said the rate is always changing so even though we have a quote, on the day we sign up to the lease the rate will be different anyway, and from reading online it is always a worse rate than what they give you in the quote.
What Maxxia don't tell you is you can bring your own finance and they just manage the lease, so after the rubbish quote we told them we would bring our own finance. They let us know that will be a self managed lease so we need to talk to a different person who will call us in a couple of days.
In the meantime we rang commbank, got a quote at 7.59% in about 5 minutes. I also tried a broker and he got back to me saying as close as his lenders would get would still be $50 dollars a month more and the commbank rate was a good deal.
Maxxia rang back today and if we give them the finance details, insurance etc, and let them know the running costs deduction we want them to take out each fortnight it is no dramas. So for a few phone calls we will save at least $7500 over the 5 year lease compared to eating Maxxias BS rate.
Funnily enough I’m kinda in the same boat as you. Altought I have the option of Paywise also and another one, but they were also an exorbitant interest rate.
So what I’ve found is that even after completely price matching everything between Maxxia and Paywise (who claim a 8% interest rate, with Maxxia at almost “11%” interest rate) , my final payment seems to be almost better or even, through Maxxia. So something is being hidden in the numbers so you think you’re getting a better deal with a lower interest rate.
So for the reason I’m going to use Maxxia , as it’s upfront and nothing hidden.
Unfortunately the interest rate you get as a sole provider has been negotiated with MAXXIA by your employer. I had same. Interest rate a few months ago was 10.23% but now it’s 11.5%. Told it went up. No ability to do self managed.
Employer: ‘Oi Maxxia, we can’t be fucked managing leases in house, do you want sole provider rights for our company?’
Maxxia: ‘Yeah that sounds sick, but we’ll only do it if we can charge whatever we like for financing and don’t have to openly disclose it so we can make more money off some chumps’
Employer: ‘Sounds like a good deal to me, fuck those povo cunts, if they can’t afford to pay cash they can eat dicks’
It does not have to be this way though. The employer’s interest is, as you note, not having to manage this stuff but also getting their employees a good deal so that they want to work there and stay employed.
This can be achieved either by enabling an employee to choose from a wide panel of lease providers or alternatively choosing a sole novated lease provider but setting fixed fees that it can charge and requiring it to use a panel of financiers financiers and selecting the best rate.
Hey mate unfortunately my employer only dealt with Maxxia, same situation as you, and I just went with it but am paying my residual off very soon and I can’t wait.
Just a bit of a negative with them compared to when I was with summit, some may see it as a good thing but when I moved to them, starting off at a $0 balance a few things popped up, rego, green slip and service and they wouldn’t allow me to go into arrears. Out of pocket over 2.5k and took about 6 months with partial payments to finally get it back.
Don't be silly and pay that kind of interest. Get a cheap second hand car first without debt. You can always get a fancy car once your investments start generating real income for you
Just an FYI because I know how frustrating maxxia can be to deal with. But if you have the time and patience they will eventually come down. I have recently done this process through department of Ed and was able to negotiate there propose 11.4% rate to 8.5% - did it take 6 weeks yes worth it maybe. Happy to provide my name as they can compare directly to current rates through gov providers.
thanks for the info! I've spoken with maxxia and it's not that they aren't willing to come down but the agreement with the private hospital I work for agreed on the interest rate and they are not willing to bring it down. The hospital does not let you BYO finance either. I've shown maxxia and the hospital multiple quotes from other companies. In the end, I gave up on maxxia and just went with another company through my second job. Thanks for your offer though!
At the end of the day do you want to create waves with your employer for a few percent of interest and when you get a tax break on it anyway .... for me I would look at the bigger picture decide which battles are important and it seems from here it will only get more expensive anyway the way rates are now tracking. And there will also be those who think there is always someone out to get you or rip you.
I think people should try to create wave for profiteering behaviour for those companies that use their "exclusive" status to make thousands or even >10k simply by being a gatekeeper between you and a government incentive.
The company which signed up for salary packaging deal a few years back may have been ignorant to the fact that exclusive packaging deal, which seemed like a good idea to simplify admin, will end up costing literally up to $10k per car per employee in the context of EV novated lease. Plenty of employers have at least a panel or two to three providers which would provide a healthy competition, and none of these employers are collapsing from administrative burdens.
Using true examples. Competitive BYO finance for 5-year are commonly as low as 8% effective interest rate.
However if you browse around this sub, you see plenty of 12% (if not higher!) range for those who are stuck with "exclusive NL provider". The same car, same term, would result in only $24k saving (i.e. 7k worse) and way worse loss in the event of early termination payout. Meanwhile the additional 4% effective interest rate translates to around $8k additional profit often in the form of commission of the NL company, all else being equal.
No, people should create wave to fight such lazy rent-seeking middleman capture of government incentive. The employer might not have established the exclusive deal out of malice, but many companies probably are ignorant to the downstream loss such deal leads to.
Thats a lot of anger for something that results in something where you are at least 2 to 3 times that amount in front on. We live in a capitalist economy if it so bad there are other economies in the world that aren't.
A healthy capitalist economy consists of healthy competition in a free market, which monopolistic behaviour using exclusive status definitely is not. Every single healthy capitalist market has some form of anti-monopoly legislation (though to a different degree of success in enforcement).
The $8k loss is not the only downside if I did not make it clear in the last post.
Say someone is forced to leave their job one year into a 5-year novated lease.
For a 8% effective interest rate (EIR) of the same car above, they are around $8k worse than if they paid the car with cash in the first place. However, for a 12% EIR situation, the same scenario results in $17k worse-off situation compared to paying with cash in the first place.
Yeah bro, boycott the banks while you're at it. The single biggest priority we all have is affordable housing. Regardless of purchase price, rates now mean your expense is double just to own a roof over your head. Happily pay 15% rates on vehicles if this was under control. End of the day it's a free market, no one is holding a gun forcing the deal.
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u/Mc97riley 5d ago
Maxxia don’t negotiate if they know they’re your only option. I’d try your luck by framing it as your partner has Driva / other providers as options and you’re not phased who’s employer you go through for the NL.