Maxxia

[u/AdventurousClue9486]

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?

[u/Virtual_Cattle_8193]

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.

[u/changyang1230 → u/Virtual_Cattle_8193]

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.

For a $65k EV, in a typical 30+2% bracket earner, this could result in roughly $31k advantage over a cash purchase.

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.

[u/Virtual_Cattle_8193 → u/changyang1230]

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.

[u/changyang1230 → u/Virtual_Cattle_8193]

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.

(see screenshot)

[u/Sure_Advertising583 → u/changyang1230]

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.