r/NovatedLeasingAU

Every single quote iteration I have received has tyre and rim protection automatically ticked. I told them to strip it out but they keep putting it back in saying it protects the residual value of the asset. Is anyone actually keeping this stuff in their package?

So I decided to buy a Zeekr 7X Performance Black Edition via novated lease and take advantage of the fbt discount. Went through my wife's employer who is locked with a very large NL company (not sure I can name them here?).
Anyway, this is my first NL ever, and they've not been very good so far explaining how the lease works, how I should make claims etc.

But we've made the application, finance is approved, and they sent the purchase order to the dealer...but for the wrong model. They've sent the PO for the Zeekr 7X Performance in Onyx Black as opposed to the Performance Black Edition (which is a different model).

The NL lease agreement doesn't state the correct model either and I've been calling the NL company for the past 2 days, left messages, sent emails, but they've not responded. Getting tired of this and now I'm wondering if I this is normal?

Hi all,

I'm looking to replace an old sedan with a more family friendly car so naturally looking at an mid-size EV. Got a quote from an NL company (Starts with an S) for a BYD SL7 Premium but when I do the maths, it doesn't look as attractive as people have claimed?

Quote Summary:

• BYD SL7 Premium ~$62.4k driveaway
• 5 year lease, residual value ~$17.7k
• Interest rate 8.14%
• Have asked to remove things like fuel money/ roadside assistance but kept the MDR (Minor Damage Repairs)
• Monthly Pre-tax payment @ $652/fortnight, Post-tax $400/fortnight

https://preview.redd.it/mp7u05udpb2h1.png?width=1198&format=png&auto=webp&s=adfc2a1701d070f20ed2e9444572f17adc1476b2

So basically over the 5 years, plus the balloon payment, I will have paid:

$400 x 26 fortnights x 5 years +$18k = $70k

$70k for a $62k driveaway car? I know there are inclusions, but if we divide the $8k difference by 5 years ($1.6k pa), essentially i am paying $1.6k each year to cover insurance, regos, tyres and services? I am not sure if it's worth the trouble of being locked in a contract for 5 years?

Am I missing something here?
Thanks in advance!

Edit: I've since found out that the new employer also primarily uses SG Fleet, and are also willing to work with any provider, so that puts my mind at ease that it'll likely all be a non-issue.

In a bit of a predicament...

I was originally told to expect my new EV at the end of April, however due to some issue that didn't eventuate and I was then advised 31 Aug as the estimated delivery date. I made some modifications to the lease (removed dealer applied ceramic coat), and at some point during this process it seems like things have fallen over a bit on the SG Fleet side (can no longer see the car order on the online portal - and no response from the delivery coordinator.

Based on that information, I applied for another job - believing there would be enough time to sort novated lease for the new employer, or cancel the order if it was too difficult to arrange. As such, I recently took a screening call which went well, so I'm expecting to go through to an interview - to be confirmed early next week.

However... surprise, the car is apparently ready next week - with finance to be settled on Wed!

If it takes a couple more weeks for the interviews to go through, and I get the job and give my 6 weeks notice... what are my options? How can I best hedge against not getting the new job, while also weighing what it means if I do get the offer and want to accept it... while keeping the car, or ending up without it?

Discuss with dealer a delay to the Estimated Delivery Date on the order form (31 Aug), just cancel the order and re-attack once I have all the information? If I accept delivery of the car on novated lease with my current employer - have it for 2 months and then change jobs, what are my options in that situation? Roll it to regular finance, could it go back onto a novated lease in future?

Tough decision if this is enough to forget about the new job opportunity altogether, or forget about the car... go through the interviews and then potentially turn down the role?

I’ve been looking into novated leasing lately and the more I read, the more it feels like the sales side focuses heavily on the tax savings while kind of skimming past the downsides and fine print. Things like balloon payments, what happens if you leave your job, higher insurance/running cost estimates, early termination pain, or how much interest you’re actually paying over the term all seem way less emphasised in the initial conversations

Are many people using trickle charing just from a power point, or do most people install a home charger? I’m interested to know, do you top up each day or just when needed?

So I have denovated my lease with SG Fleet and they advised the Early termination quote is $22k.
Contract is up next April but they said can’t give me an estimate how much it will be to purchase the vehicle outright then.
Any general recommendations welcome from people who have been In similar situations or people in the industry. Thanks in advance.

What is the best way to manage comprehensive insurance on a novated lease? SG Fleet have quoted $300+ per month for comprehensive but I have gotten quotes from other insurers for less than $200 a month.

Given the difference is over $100 a month, is it more economical to go ahead without comprehensive packaged into the NV and pay for comprehensive separately?

Vehicle is 2026 Tesla Model Y Premium Long Range

There is a massive misconception that you need to be in the highest tax bracket for salary packaging to be viable. Even on an average salary of 75 grand, if you are doing decent kilometres and packaging an efficient vehicle, the tax savings on GST alone for servicing, fuel, and parts can put a significant amount of money back in your pocket compared to paying with retail after-tax dollars

I’m not talking about a spirited weekend drive through the hills, or pretending every commute is a Top Gear episode.

I mean the boring stuff.

The mind-numbing commute. Traffic. School runs. Back streets. Suburban driving. Stop-start nonsense where most of us actually spend 95% of our time.

I’m asking because EVs are getting a bit ridiculous now. The Zeekr X is apparently 365kW for around $58k. That is insane money-for-power compared with where cars were not that long ago. At the same time, cars are getting more tech-heavy, more assisted, more insulated, and arguably making us more part of the ride than part of the drive.

I’m personally still on the fence. I still enjoy the odd flick around a tight roundabout, and I’ve always liked the idea of a slow car driven quickly rather than a fast car barely being used. But with speed limits getting lower, roads getting busier, and performance becoming almost meaningless in day-to-day driving, I’m starting to wonder what actually matters most in a modern commuter car.

So for those who made the switch mainly because the numbers made sense:

Did you miss ICE more than expected?

Did the EV feel soulless, or did the instant torque and quietness win you over?

Has the novelty worn off?

Would you go back to ice if the ev discount was removed?

And as EVs get faster and more tech-heavy, what do you actually care about most now: range, comfort, charging speed, tech, cost, handling, or something else?

I genuinely thought this data was wrong.

As in, “surely I’ve stuffed up the report” wrong.

So I checked it again.

And again.

The numbers held up.

Across 448 novated lease quote comparisons, the savings we are seeing are much bigger than I expected.

Not a few hundred dollars.

Not just “we found a slightly better deal”.

In many cases, it is serious money.

16 comparisons showed savings under $1,000.

53 were between $1,000 and $2,500.

95 were between $2,500 and $5,000.

130 were between $5,000 and $10,000.

126 were between $10,000 and $20,000.

21 were between $20,000 and $30,000.

7 were above $30,000.

I want to be clear: quote comparisons are not always perfectly identical.

Assumptions can vary. Budgets can vary. Terms can vary. Insurance, running costs, finance structure and inclusions can all affect the final number.

But even allowing for that, the size and frequency of these differences is hard to ignore.

This is the part of novated leasing that frustrates me.

For a product that can genuinely save people money, it is still far too hard for the average employee to know whether they are looking at a strong quote, an average quote, or a very expensive one dressed up as a tax saving.

Too often, the conversation is reduced to one neat “cost per pay” figure.

That might be simple, but simple is not the same as transparent.

Employees should be able to clearly compare:

• the finance rate
• the total repayment
• the fees
• the running cost budgets
• the insurance assumptions
• the total cost over the term
• the actual saving compared with buying the car another way

That should not be controversial.

If two quotes for broadly similar outcomes can be $10,000, $20,000 or even $30,000 apart, then we need to have a serious conversation about transparency.

Not because novated leasing is bad.

The opposite.

It can be an excellent benefit when it is explained properly.

But the numbers need to be clear enough for normal people to make informed decisions before they sign.

Because when the differences are this large, “just look at the cost per pay” is not good enough.

We have had our EV on NL for a couple of months now and by my calculations we seem to be saving (making?) money by doing ks… that can’t be right can it?

We have done 3,000 km. We charge at 5c/kwh from midnight to 6am costing about $1 to add 100ks. So that is $30 in electricity charges.

We can claim that back through the NL company 5.47c per km, or $164 of our pre-tax earnings. That would have normally been taxed at 37%, so we have an extra $60 in our pocket, or extra $30 once we pay the power bill. Is this right?

I already realised an EV NL was a no-brainer for our circumstances, but I hadn’t even factored this savings into it

As per title - what do you all think about the chances of NL companies surviving post EV FBT exemption after a significant growth recently?

Not trying to trash the industry, I have one running so I do want them to survive. But I do wonder if this need to be taken into consideration when choosing NL provider? Something that has a long history vs new firm started last year?

I’ve just signed a three year lease, which will end in May 2029, a month after the FBT exemptions are wound back. There’s a lot to play out between now and then, and I will be checking the details with my lease provider, but I’m curious about the costs of breaking or renegotiating my lease in March/April of 2029 to grandfather a new lease agreement.

Any thoughts, advice or experiences?

What interest rates are people currently getting through novated lease companies?

At the moment, SG Fleet is offering me 9.7%, however I would like to understand whether other leasing companies are currently offering more competitive rates.

Would appreciate hearing what rates others are seeing in the market at the moment.

Hi All. Looking at comparing quotes with a few providers. The quotes are around the same so now it comes to who will be the best to deal with after signing the quote and once the lease is up and running. Can you all let me know if you have experience with any of the 3 providers and what your comments are?