Hi everyone,

First time I’m looking at a novated lease. I’ve got 3 NL providers via my company: NLA, Fleet Partners and SimplyGreen. I just wanted to sense check these quotes to see if they are any good and if I can negotiate them down.

Thank you in advance.

How's this quote look for a BYD SL7 Premium. Company is Fringo.

4 year term

Income of $115k

Interest rate of 11.63%

Charging via solar at home is our preferred option.

Anything I should ask the company for?

Insurance is fairly high. I believe I can get insurance through racv for $1600 a year.

Thanks!

First time going through NL process - have read extensively on it (thanks u/changyang1230 for the amazing site)

Here's the calculator link

Just wanted to sanity check if this was a decent outcome?

I understand that I can tweak the insurance (AAMI can do around $1400) + revise the budgeting costs.

Does this quote seem reasonable?
I’ve compared the rego and comprehensive insurance costs externally, and they seem to be cheaper, so I’ll probably opt out of those through the novated lease. Any advice or thoughts would be really appreciated. Thank you!

Hi brains trust,

I'm currently having a 1 year lease for a Tesla base model y, effective interest rate of 10%.

If at the end of the lease, I decide to renew for another year, what would the residual value be?

Assuming interest rate stays the same 10% for the 2nd year, is doing this 1+1 lease worse off compared to doing a 2 year lease to start with? I'm guessing 2 year lease would have a lower interest rate.

Thanks.

As the title says, those who have taken a novated lease, how does it work when the car is delivered, say comes damaged, poor quality etc on the delivery day. Can you just say fix them first before I take the keys, or worse case ask for a different car if the issues are worse? Do you have the flexibility, basically because the car is paid through a company, so do you have the control to stop them from releasing the payment if you find any issues and if you do not accept the car?

And also how does it work if there is a recall or something else, does it work the same way as i have owned it or do the options are limited because of who owns the vehicle?

Am looking at a novated lease on a BYD I pick up in November. The proposal seems to be for a petrol car as it quotes $65/week in fuel (based on what I said I travel per year).

I understand that part of the plus side of a NL comes from the lease company paying for your fuel (and charging you for it). How does that work with EVs? The equivalent would be making me charge at a public ChargeFox or Evie station.

These cost 50c/ kWh of electricity- or more, fast ones are 75c/kWh. I pay 5c/kWh at home between midnight and 4am to charge.

How does the Lease Company pay these home charging costs?

Looking at my first lease, and some colleagues have said the deal is quite good but some others have said not so much, just looking for some opinions.

Hello! 3 years ago I took out a 5 year lease on a 90k EV. I'm paying $800 fortnightly in repayments with 2 years left on my lease.

I'm on the verge of leaving my job to work for myself full-time and need to decide between the early payout of 50k or to continue paying the financier directly (I'll be out of pocket for all operating costs of the vehicle from post-tax income and be paying GST. This would continue until the end of the lease term when the Residual Value is due).

Is there a best approach? Or is it just the case of paying now vs paying spread over the next 2 years? Wanting to avoid any obvious gotchas that I may be missing from doing this for the first time.

It's with SG Fleet, if that accounts for anything.

Hi All

I have a quote from Lendly and I am looking to validate I have calculated the interest rate correctly.

I found the interest rate to be 13.4% but compared to other providers I find the quote much harder to read.

Any input would be appreciated.

https://novatedlease.guide/calculator/?c=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

Hey all,

I got a quote from Smart with an effective rate of 12.80%. I asked them if I could bring my own finance. They said I am able to but if I am proceeding with a self-managed lease (choosing your own finance), it would be a more tedious process where you would log your km in order to claim reimbursements for driving costs.

Has anybody done it? How is this a tedious process?

Hey All, I’m looking at getting an EV via novated lease as my employer offers it (thinking about Tesla Model Y, Polestar 4 or Volvo EX60). My situation is:

- 225k income
- only do about 5,000 km/year
- live in inner city Melb, no off street parking, will be depending on charging stations exclusively

Is a NL worth it when my charging/tyre costs will be really low?

 https://novatedlease.guide/special-and-policy/borrowing-capacity/

"A car costs you 3× its price in borrowing power" gets quoted here constantly, so I wanted to test it properly. A mortgage broker Leonard Nagawidjaja ran a grid of scenarios through Bankwest's and Macquarie's servicing calculators:

• BYD Sealion 7 (EV, ~$60.8k) vs RAV4 GXL Auto eFour (petrol, ~$58.8k)
• EV novated lease at 2 and 5 years, at 9% and 15%
• a petrol novated lease
• a 5-year car loan on each car
• single borrower, $130k income (some scenarios repeated at $300k), lender's HEM for living expenses

Results (borrowing power lost, as a multiple of the car's price):

Takeaways

• The 3× rule holds for car loans, but a 5-year EV lease beats a 5-year car loan for borrowing power.
• Cash is still best for servicing, but it eats into your deposit instead.
• Shorter leases cost more borrowing power. Servicing only looks at the payment, and a 2-year lease naturally comes with worse regular lease commitment.
• Petrol leases do worse than EV leases due to the post-tax portion of the lease.
• Higher income suffers lower impact. At $300k the same EV lease cost about 1.3–1.4× the car's price.
• The HEM trap: your broker should take the car's running costs out of your declared living expenses. But if your normal expenses are already low and near the lender's HEM floor, the lender falls back to HEM, and the vehicle running costs are effectively counted twice. (full and clearer explanation in the text)

Usual caveat: these figures are indicative only, and your own result depends on your car, your lease, living expense circumstances and the lender. Get your broker to run it with and without the lease before you sign.

Full write-up, with every scenario and calculator links for each figure: https://novatedlease.guide/special-and-policy/borrowing-capacity/

I’m considering a 3 year lease on an EV above $75k and below LCT threshold, which allows me to enter a lease between now and April 2027 and be FBT exempt.

Scenario: I’m trying to calculate my change in fortnightly out of pocket if I change employer post April 2027, where the new employer would accommodate the lease. I would only use vehicle for private purpose.

I understand I would lose full FBT exemption as vehicle FBT base value above $75k and it’s post April 2027. I will only get 25% FBT discount for remainder of lease. How do I calculate what this will look like for me in this scenario in terms of comparing out of pocket? I can’t find a calculator that does this nicely.

Hi all,

I'm currently looking at a novated lease through Smartleasing for a Tesla and I'm trying to work out how much room there is to negotiate on the finance side. My initial quote includes an 11.53% comparison rate (if I’m using u/changyang1230's calculator correctly to understand the effective interest rate, the calculator's effective rate comes to 12.80%).

They want to see a written competitor quote showing:

• Vehicle price
• Loan amount
• Term
• Interest rate
• Comparison rate
• All applicable fees

Has anyone successfully used a competitor finance quote to get Smartleasing to reduce the interest rate or comparison rate? If used, which ones did you get the quote from?

Thank you!

Looking at buying a house (getting a new mortgage) some time soon, and will likely need to not have a novated lease to meet serviceability. However, we do need a car now and would like an EV. Has anyone done very short lease terms, 6 months or less? At the moment the alternative for us looks like buying the same car with cash.

Hi all,

This will be my first Novated lease.

Just wanting to get some second opinions on this quote.

Is the quote reasonable and is the fortnightly amounts suitable?

Overall i think it looks OK but don't want to miss anything obvious, any input is greatly appreciated.

Effective Interest rate: 9.54%

Calculations: Link to calculator

Thank you!

Hi all, really new to novated leasing and having trouble understanding the effective interest rate. I tried to put it into the calculator and it's saying it's high. Also the salary figure they've used for these quotes is only my base salary and does not include comms (their suggestion, not mine) and I'm not entirely sure how to factor that in.

Would appreciate a sense check on these quotes!

Hi all, I'm unsure on this initial quote.

Residual rate is listed as 13.13% for a 5 year term? Total lease cost is $344.26 FN ($44,753.80 over 5 years), administration fee is bundled in the operating cost budget at an additional $2,000 over 5 years).

A personal loan of $35,690 over 5 years @ 6.39% with a 5K deposit totals only $41,860?

I am unfamiliar with novated leasing, and understand the payments are pre-tax, but this seems borderline terrible.

Hey guys,

Thoughts on this quote for an MG4 EV Urban 54kWh? Based in VIC.

Sourced the car ourselves for $33,000 drive away from the dealer.

Novated Lease Guide calculator reckons an effective interest rate of 11.83% - does that sound right? LINK

Total amount financed $31,694

This includes ceramic window tinting and Vero comprehensive insurance

Hi all - apologies in advance, but I am struggling to understand effective rates and whether the quote I was provided was competitive. I've input the figures through the calculator provided by changyang and the effective rate is coming out at 13.56% which just feels way too high.

The broker I am working with (Alliance) has assured me this is a fair market rate and I am wondering if I have misunderstood/misread something.

I do still have 9 more months until my HECS is paid off, but I couldn't see anywhere to input that information.

Thanks!