Any Good Novated Lease Deal Late 2022?

justwii on 05/11/2022 - 02:18

I think I am paying much more on petrol than ever, so may be its time to consider novated lease since my company offers it.

But first, I want to double check, I save on car running cost because I budget those expenses with my pre-tax income, however, I have to pay FBT using my post-tax income and I have to pay an exceptionally high interest rate loan unnecessarily (even though I can pay the full car price outright or novated lease my own car). So ultimately, if my running cost savings are less than the FBT and loan interest, I am better off not do any novated lease?

Do you know of any good novated lease deal at the moment? Thank you!

Automotive

Comments

  • Hybroid on 05/11/2022 - 03:20
    +1

    That's a bit of an open ended question that cannot be answered. What vehicle are you looking for? Are you after a Corolla hatchback or C63 AMG? How long for? What's your budget? What does "good" mean to you?

  • avoidfullprice on 05/11/2022 - 07:09
    +1

    So ultimately, if my running cost savings are less than the FBT and loan interest, I am better off not do any novated lease?

    Also look into FBT cost base reduction (depends on age of car) and the ability of the lease company to find you a good deal.

    Do you know of any good novated lease deal at the moment?

    You first need to check with your employer which lease company they partner with. It is not an open market like finding a bank to service a mortgage .

  • chillybags on 05/11/2022 - 07:14
    +1

    This tool is pretty good and you can compare novated lease to cash and loans.

    https://www.toyotafleetmanagement.com.au/novated-lease/novat…

    • avoidfullprice on 05/11/2022 - 09:45
      +2

      The “ Novated lease finance” component is where company obfuscates the real interest rates of the lease loan, and also where they get you with early lease termination

  • Euphemistic on 05/11/2022 - 09:54
    +2

    Do your sums carefully. It might be pre tax dollars but at some point in the process someone is collecting profits which may ultimately cost you more.

    Also if you are wanting to take volatility out of your fuel bill, be careful about the lease fine print. They may have started including variations to cover the cost of increased fuel.

    You want to save on petrol? Get an EV.

  • brendanm on 05/11/2022 - 16:11

    Has the government passed the fbt exception for EVs yet?

    • Kaz0551 on 05/11/2022 - 21:08
      +1

      Not yet. Subscribed to the legislation and have application form ready :)

  • jv on 05/11/2022 - 22:32

    Do you know of any good novated lease deal at the moment?

    Nope…

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