This was posted 6 months 18 days ago, and might be an out-dated deal.

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3.99% p.a. Comparison Rate 36-Month Loan Only (Min 20% Deposit) on Kia EV6 GT & GT-Line AWD Grades @ Kia Finance

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3.99% p.a. Comparison Rate 36-Month Loan Only (Min 20% Deposit) on Kia EV6 GT & GT-Line AWD Grades @ Kia Finance
Go to Deal
SupeNintendoChalmers on 04/06/2024 - 20:46 kia.com (1479 clicks)
Last edited 04/06/2024 - 21:47 by 1 other user

imho, a vastly superior car to the Model 3\Y in terms of interior and exterior design and build quality, that unfortunately has been hamstrung by lack of stock. According to Kia, supply is now greater.

Until 30 June 2024, enjoy 3.99% p.a. comparison rate* on the EV6 GT & GT-Line AWD grades. 36 month term only, minimum 20% deposit & maximum 30% balloon payment applies.

Available only with purchases financed with Kia Finance™ on new & demonstrator EV6 GT & GT-Line AWD grades.

3.99% p.a. comparison rate* Minimum 20% deposit* 36 months term only*

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closed Comments

  • Mr Bob Dobalina on 04/06/2024 - 20:47
    +1

    Car finance. lol

    • nedski on 04/06/2024 - 20:48
      -2

      Yeah why would you bother when novated leasing is way cheaper.

      • Stefce on 04/06/2024 - 20:49
        +14

        Because like all things YMMV and it all depends on your individual circumstances.

      • bruceclipse on 04/06/2024 - 22:34

        Only makes sense when you are in the highest bracket. Otherwise the saving is negligible and some instances you may end up paying more.

        • WhatsTheBigDeal on 04/06/2024 - 22:52
          +5

          Disagree on this. Just need to find the right novated company with transparent quoting. And then it should always make sense now that 95% of us will be in 30% bracket soon.

          • Kammi on 05/06/2024 - 11:51

            @WhatsTheBigDeal: How do you know if you're ahead or not? What would one be checking?

            • Nom on 05/06/2024 - 12:33
              +7

              @Kammi: Verrrrrrry roughly :

              Buy a $50K EV outright.
              Total cost over 5 years is $50K + ($1500 insurance * 5) + ($800 rego * 5) + ($200 servicing * 5) + ($200 tyres * 5) = $63500.

              Novated lease a $50K EV.
              Total cost over 5 years including insurance and rego and servicing and tyres is ($370 per fortnight * 26 fortnights per year * 5 years) = $48100 + $12000 residual payment to keep the car after 5 years = $60100.

              You just saved $3400 and you also spread the payments over 5 years allowing you to leave the original $50K sitting in your mortgage offset for that time period, saving you another stack of thousands.

              Buy a $50K EV on the 4% finance rate of this deal.
              Total cost over 5 years is $55250 including interest + ($1500 insurance * 5) + ($800 rego * 5) + ($200 servicing * 5) + ($200 tyres * 5) = $68750. It's over eight grand more than the novated lease option !

              • Kammi on 05/06/2024 - 13:26
                +1

                @Nom: Thankyou.

                There's also the tax/payment side of things too right? If I can survive the loss in regular income then a nl seems like a no brainer?

                And in your example e.g. preserving the $50k for the balloon payment I don't get how people see this as some sort of trap? Whats the catch? Discipline saving for the balloon and/or resale?

                • Nom on 05/06/2024 - 20:22
                  +2

                  @Kammi:

                  There's also the tax/payment side of things too right?

                  No - the numbers I use above are the numbers that will come out of your pay. ie you will get $370 less into your bank account every fortnight.

                  This is the actual cost to you. It is the money you will not have, each pay.

                  In reality, what actually happens is that the lease company gets $370 from your pay, and they also get another $130 or so from your tax - but who cares, that money was not yours anyway. Just ignore that component. The lease company loves to tell you about this part because they think they are making the savings bigger.

                  But the only thing that actually matters is how much money is going to arrive in your bank account.

                  If I can survive the loss in regular income then a nl seems like a no brainer?

                  Correct.

                  And in your example e.g. preserving the $50k for the balloon payment I don't get how people see this as some sort of trap? Whats the catch? Discipline saving for the balloon and/or resale?

                  Sorry, not sure what you are asking.
                  The only balloon payment in my example is the $12000 at the end of the novated lease. Not $50K.

              • PleasureMachine on 05/06/2024 - 15:03
                +1

                @Nom: Just to add for @Kammi….with the FBT exception in place, the $60,100 @Nom used, this get taken out of your pre-tax salaray….so for arguments sake, if you were on $100K.
                - If you bought the EV outright you'd still be taxed at $100K
                - If you "bought" the EV via novated lease, you'd now be tax at ~$88K ($60K / 5yrs is about $12K per year) so that's also another way of saving too. NL financing with the quotes I have got are around 10-12%. I'm trying to get a better rate but I'm limited in choices.

                Have read of the EV FBT exemption as there are other saving too (GST exemption on accessories for example) and talk with your financial advisor to see if it's suitable for your circumstance.

                • Nom on 05/06/2024 - 20:26
                  +1

                  @PleasureMachine:

                  $60,100 @Nom used, this get taken out of your pre-tax salaray

                  No - the $60,100 I used is the money that will not be in your bank account.

                  My numbers are all post tax. These are your actual costs.

                  Yes there is a larger pre-tax payment to the lease company on top of the $370 - but who cares, that money was not yours anyway. You can safely ignore it.

                  To put it another way - the cost to you is $60,100 - but the leasing company receives significantly more than this, because they also take a bunch of your tax that would otherwise have gone to the Gov. But this doesn't cost you anything - so don't factor it in to your costs. The leasing companies love to talk about this - but it's a big red herring.

                  with the quotes I have got are around 10-12%

                  10% is about the best you will find. My numbers above are using this rate - that's what gives the $370 fortnightly figure. If your lease rate is 12% then the fortnightly payment will be a bit more.

                  • PleasureMachine on 13/06/2024 - 13:21

                    @Nom: Ah ok. Thanks for the clarification.

                    Yeah all that matters is the post-tax / take home component. (which I was having great difficulty in determining with the mistakes in the all the quotes I was getting).

                    Yeah a colleague got 4-5% with her partner's NL provider. Our company only has two options available and aren't allowed to use others.

      • thamps on 05/06/2024 - 10:34
        +1

        I'm not sure how it's 'way' cheaper. Most of the time, the numbers give a misleading illusion of saving money, but over the total lifetime costs, 95% or more of the time, you end up paying more.

        However, it depends on individual preferences—some people prefer the ability to own it now, despite the monthly costs and worry about the 'balloon' payment for later.

        • nedski on 05/06/2024 - 22:00
          +1

          The savings come from 100% of it being from pre-tax income.

    • SupeNintendoChalmers on 04/06/2024 - 20:48
      +17

      Unless you have the bank of mum and dad or have savings, what bank will give you a car loan at 3.99%?

      Also, not everybody can do novated leasing.

      • nedski on 04/06/2024 - 20:49
        +4

        That is a fair point. Apologies.

      • Kill Joy on 04/06/2024 - 21:04
        +17

        If you cant afford it outright, theres a case to be made that you likely shouldn't be buying it at all. Finance on a depreciating asset is 101 of bad financial advice.

        Something something, high yield AMG (i think thats the reference).

        • boomramada on 04/06/2024 - 22:27

          Joke a side, AMG 63 V8 variant is now collectors item lol

        • Nom on 05/06/2024 - 12:44
          +3

          Finance on a depreciating asset is 101 of bad financial advice.

          This depends.

          If you can finance the car at 4% interest, and then you leave the $78,584.47 sitting in your mortgage offset (instead of spending it on the car), you will save significantly more than the 4% interest cost.

          It's cheaper to finance the depreciating asset than to buy it outright, in this scenario.

          • Kill Joy on 05/06/2024 - 16:16

            @Nom: I agree, there are niche scenarios where it is not the worst option to take;

            …theres a case to be made…

      • krisspy on 04/06/2024 - 21:49

        My ev on novated is at 0% plus all expenses discounted at my personal tax rate

        • tommynolips on 04/06/2024 - 22:15

          who do you do it through? i have my own company and am interested in exploring novated lease

          • [Deactivated] on 04/06/2024 - 22:47
            -1

            @tommynolips: " i have my own company".

            Use revenue to purchase it, rather than borrowing to leasing, then provide to yourself for personal use.

            The FBT exemption is that work supplied vehicles are FBT exempted. Nothing to do with leasing.

        • [Deactivated] on 04/06/2024 - 22:45

          Sure. "0%"… Fool and their money… What to say.

          • krisspy on 05/06/2024 - 07:48

            @[Deactivated]: Well technically the lenders are charging about 10% on the loan, but after 3 years I'm only about a hundred bucks off the retail of the car

            • IXXI on 05/06/2024 - 11:11

              @krisspy: Yep, around 10%. Plus all running expenses are rolled into the lease payment, so technically its less than 0% if you are making a direct cost comparison v's non-novated finance. But, yeah @Chinese, you just go right on about fools and their money…..

            • [Deactivated] on 05/06/2024 - 11:11
              +2

              @krisspy: So only save a few bucks (not to mention a significant drop in serviceability when it comes to mortgage time) and all the "saving" funded by tax payer went to the leasing company.

              Then leasing business is a big rot.

              • bruceclipse on 05/06/2024 - 14:08

                @[Deactivated]: That's why I am all in on MMS lol but not a user of NL myself…

                • [Deactivated] on 05/06/2024 - 14:20

                  @bruceclipse: Our work manages all employee leases in-house for FBT free EVs. Basically buys the vehicles and provide to employee.

                  Funding rate is low single digit.

    • Kommodore on 04/06/2024 - 20:49
      +1

      It costs $110k+ too lol.

      • SupeNintendoChalmers on 04/06/2024 - 20:55
        +1

        I'd compare it to a Tesla Y Performance, not withstanding the superior 0-100 from the Y.

        The EV6 range is superior though in terms of;

        • V2L both interior and exterior
        • Faster recharge, double speed
        • Actually has tactile buttons
        • Better build quality
        • Seats are comfier

        Edit just found out GT is 3.5\0-100, whilst Y Performance is 3.7

        • knobbs on 04/06/2024 - 21:27
          +7

          Mmm a car with actual buttons/knobs and not full touchscreen. A man can dream

          • Murpha on 04/06/2024 - 21:44
            +1

            @knobbs: I'll stick with my levers, pedals and hand signals, tyvm

          • cloudy on 05/06/2024 - 06:46
            +2

            @knobbs: Username checks out

      • revivor on 04/06/2024 - 20:57
        +8

        It will be 80k in a few weeks time lol

        • Bippz01 on 04/06/2024 - 21:47
          +1

          Demo GTs are already sold for around $85k in QLD.

          So yes…not long ..

    • nagel on 04/06/2024 - 21:27
      +2

      Might be a good deal for someone who does have the cash for it but rather have that cash sitting in a offset/redraw account with higher interest rate as most home loans are around 6% atm.

  • Dorge on 04/06/2024 - 20:55
    +4

    Buy a car with cash. You'll save a fortune over your lifetime.

    • Mr Bob Dobalina on 04/06/2024 - 21:03
      +1

      +1

    • 0 0 0 on 05/06/2024 - 00:21

      Yeah I wanted to do this to save on the bank cheque fee. But something about anti money laundering so the dealership wouldn't accept bags of cash💰💰💰

  • Jikx on 04/06/2024 - 20:58
    +2

    Way overpriced.

    • SupeNintendoChalmers on 04/06/2024 - 21:00

      I'd agree compared to the base model Ys,the EV6 range is not competitive, but when comparing upper grades, its lineball.

      • nubix on 04/06/2024 - 21:11
        +3

        I love my Sorrento and was very excited when this was rumoured, but it's not competitive at all. After the tax rebates, the GT will end up being about double a Y Performance.

        …ended up with a BYD :/

        • davlloyd on 05/06/2024 - 06:52
          +2

          My condolences

  • Zippy7 on 04/06/2024 - 21:07
    +1

    In my experience, Kia service/warranty was worse than what I experienced with Holden/Ford/Mazda/Audi.
    A long warranty is no good if the dealer is unpleasant and automatically tries to make an excuse or blame you.
    For me, I have no desire to spend any money with Kia/Hyundai again.
    Of course, YMMV.

    • bemybubble on 04/06/2024 - 21:26

      Really?? All my warranty experiences have been great for my Kia. Coming up to year 6

    • Murpha on 04/06/2024 - 21:45

      Ford's after purchase support is horrid

  • Pinchy on 04/06/2024 - 21:34
    +2

    Gonna be so many EV deals coming soon..sales are down. And there are over 10 new Chinese EV manufactures coming to Australia.

    • hopper on 04/06/2024 - 21:55

      Wow…. So it's going to be android phones market

    • BlueGlowOne on 04/06/2024 - 21:55
      +2

      Considering the amount of Havals and MGs on the road, a lot of buyers are not put off by Chinese brands compared to the first time Chery attempted to enter the market.

      BYD is crushing it and if there are other manufacturers half as good coming onshore, especially since they will be looking to alternate markets outside the tariff heavy US and slowed demand China, it’s going to be a crazy next ten years.

      • Kommodore on 04/06/2024 - 23:47

        I said China will take over the car market or at least be rival player in no time and no one believed me. In stock now, affordable, and pretty good, everyone isn't rich people will buy them. BYD quality is great they are good cars already.

        • hopper on 05/06/2024 - 01:15

          +1, waiting for cheap byd cars so I can become a EVhead

  • altomic on 04/06/2024 - 22:10
    +1

    So, what's the bargain?

  • [Deactivated] on 04/06/2024 - 22:44

    3.99% + fees post tax pay, so 6-8% pretax dollar vs offset account 6% - tax free.

    Meh. Not a deal.

    • OZBMate8911 on 05/06/2024 - 06:52

      For those of us lucky enough to have an offset account…

      • [Deactivated] on 05/06/2024 - 14:22

        If they don't, shouldn't be looking a buying a car of this price point, especially financed.

  • ChickenAdobo on 04/06/2024 - 23:15

    Need a $17518 deposit for the 20% minimum requirement.

    $44,155 loan amount excluding state tax/registration , LCT stamp duty.

    $26277 for the balloon on the GT Line. Too expensive

  • choofa on 04/06/2024 - 23:21

    It would want to be a vastly superior car with that vastly superior price tag. If rumours are true that Kia also loses money on each car sold it’s even better value I guess

  • juzz0 on 05/06/2024 - 02:50

    People go on about Novated leasing but if you buy it to use 90% for Uber vehicle then you can make a little money + have a nice EV car while claiming deductions (rather than an old leaking Corolla that no man, girl or dog would want to ride in). Good for those who have no social lives and would rather drive around than wait tables to earn extra dosh (+ if you ever do meet someone romantically they will not be turned off by your ride, and no you should never use your car as a —-t test)

    • Ryanek on 05/06/2024 - 09:07
      +3

      What did I just read

  • [Deactivated] on 05/06/2024 - 08:11

    The comparison rate is based on a secured consumer fixed rate loan of $30,000 over a term of 5 years.

    enjoy 3.99% p.a. comparison rate* on the EV6 GT & GT-Line AWD grades. 36 month term only,

    So this doesn't mean anything because the comparison rate is not based on the same terms as the special.

  • mybrains on 05/06/2024 - 09:58
    -1

    while i love EVs, im not a fan of NCM batteries (google some vids on how well they let the fire genie out and how cobalt often comes from child labour). Much better to see a car with LFP derivative or Sodium tech in batteries. Just google these up if unsure what it means. Kia till present use LG chem NCM batteries in these models. The newer EV3/5 etc are supposed to use LFP and be made in china btw.

    • samkenny on 05/06/2024 - 10:17
      +1

      Unfortunately, no one cares about child labour when they can secure a deal (Shein anyone or iPhone?). This practice has been a staple since the dawn of humanity and not going away anytime soon. Only veils to hide your feelings from being hurt. Companies also don't care unless their wallets are hurt and right now, LFP batteries are just cheaper for the switch and profits.

      • mybrains on 05/06/2024 - 11:29

        Sure. just note the LFP fire genie isnt half as bad as NCM. NCM is like a blowtorch !

  • d3al on 05/06/2024 - 11:36
    +1

    For someone just dipping into the EV world, this is not good value. Novated leasing on a Tesla is surprisingly cost effective and makes way more sense after all the price drops, FBT and GST exemption. I've just leased one and awaiting delivery on a demonstrator model Y standard range with 5,000 km on the clock, upgraded paint, wheels and autopilot for $850 per month all inclusive. Balloon payment at the end of 5 years is $18k and I'll most certainly be able to sell it for more.

    • bruceclipse on 05/06/2024 - 14:10

      Which company?

    • [Deactivated] on 05/06/2024 - 14:23

      So what's the true cost? Financing rate and other charges?

      • Nom on 05/06/2024 - 20:40

        So what's the true cost?

        That is the true cost.

        $850 per month * 12 months * 5 years = $51K, plus balloon payment of $18K = $69,000 inclusive of insurance, rego, and tyres.

        Financing rate and other charges?

        What do you mean ? Those things are included in the $850 monthly payment - there are no additional rates or charges.

        • [Deactivated] on 05/06/2024 - 22:00

          Ok
          So you are paying $69k for a $55k car excl GST (or $60k DA) when brand new. Used should see $2k off…

          71k (69+2k gst for the balloon). for what's effectively - $53k+ Insurance is 2k year. That brings it to $63k. One set of tyre is $1k. Rego + CTP is 800year. Another $4k. So all up $68k.

          Not bad with FBT exempted. Assuming 45% bracket. Car is effectively $40k

          • Nom on 05/06/2024 - 22:26

            @[Deactivated]:

            So you are paying $69k for a $55k car excl

            Sorry, your numbers don't make any sense to me.

            Model Y is $61K drive away.
            Plus five years of insurance ($10K), tyres ($1K), rego ($4K) makes a total five year cost of 61 + 10 + 1 + 4 = $76,000.

            The Novated Lease costs $69K including tyres and rego and insurance, financed over 5 years. You just saved $7000, and spread the payments over 5 years.

            You are paying $69K for a $76K car.

            • [Deactivated] on 05/06/2024 - 22:39

              @Nom: "$61K drive away"

              1. DA is 60k on NSW for a brand new car (deduct $2k as it is used). And take out GST of 5k. Makes the car cost of app $53k. (NL does not pay GST).

              2. $53k + 10k (insurance) + 4k (rego) + 1k (tyre) = 68k of value being leased.

              3. $51k (lease payment) + 18k balloon + 1.8k GST (based on residual) is app $71k.

              So all up $71k out of pocket pre-tax money for what's effective costing the lease company $68k. Still not a bad deal given $3k is not enough to even cover their interest cost. Some how the numbers don't seem to add up as the leasing company usually borrow at cir 6%.

              So net out of pocket after tax is app $40k for the car - 45% tax bracket.

              • Nom on 06/06/2024 - 10:45

                @[Deactivated]: I don't know how to make it any clearer.

                My figures are already including all of the tax and GST savings, you don't need to add anything further to the calculations.

                The $69K total cost is the actual money that will be coming out of your bank account over the next 5 years. It already includes the tax and GST savings.

                If your monthly bank account payment from your employer is usually $5850, it will now be $5000 from when you start the lease. The pay going into your bank account will have reduced by $850 per month. This is the cost to you. That is where the $850 monthly figure is coming from. There's no "additional" savings for you to add.

                So net out of pocket after tax

                Net out of pocket after tax, is $850 per month or $69K in total.

                • [Deactivated] on 06/06/2024 - 10:51
                  +2

                  @Nom: So the 850 is post tax amount? (Usually PAYG deducts tax before remitting)

                  I hope not… Otherwise it is probably one of the worst EV leasing deals I have seen.

                  Talking about leasing company making a killing and not being transparent about it.

                  • Nom on 06/06/2024 - 11:01

                    @[Deactivated]: Yes, this is the post tax amount.

                    In reality, what is actually happening is that you are giving $850 from your salary, and the leasing company is also taking another few hundred dollars from your tax - so they are getting significantly more than $850 per month.
                    But that extra money was not yours anyway - it's simply diverted from the Government to the Leasing company. It doesn't cost you anything.

                    Otherwise it is probably one of the worst EV leasing deals I have seen.

                    It's a pretty standard lease deal - a saving of $7000 whilst also spreading the payments over 5 years, is definitely a win for you.

                    You can put the original $61K into your mortgage offset account over the 5 year period, instead of spending it outright on the car - this opens up a whole bunch of addtional saving. Hell even if you drop the $61K into a savings account it's going to earn you over ten grand in interest over the 5 years.

                    Talking about leasing company making a killing and not being transparent about it.

                    Who cares, the important part is what you save as the customer.

                    • [Deactivated] on 06/06/2024 - 11:14
                      +1

                      @Nom: Indirect cost to tax payer funding the 1. Leasing company, 2. Financier.

                      Folks I know are netting $500ish monthly deduction post tax pay on a 89k car… At work we get $400 post tax deduction on the same car because we manage them in house.

                      I guess that's why in another post someone mentioned most people don't truely understand NL. This is a good reflection of it, and is funding an entire industry at tax payers cost.

                      No further comment.

                      • Nom on 06/06/2024 - 11:21

                        @[Deactivated]:

                        and is funding an entire industry at tax payers cost

                        I completely agree - the fact that this industry exists at all is truly bonkers. Why on earth would the government even want to be subsidising expensive cars for rich people, using income tax ?

                        I have no idea why novated leasing exists (I assume it was to help the local car manufacturing industry, which no longer exists, sell expensive cars) - it's just as stupid as negative gearing. Tax subsidies for the rich are generally the opposite of how the tax system should work.

                        But, the offer is there … if you're going to buy a car anyway then you may as well use it 🤷‍♂️

                        • [Deactivated] on 06/06/2024 - 11:23

                          @Nom: "may as well use it"

                          Sure. Not to be taken a massive advantage of though. In your specific scenario, it's a joke the amount that you are paying.

                          Aside from EV with FBT exemption, people taking out leases are getting screwed hard without knowing/understanding it. Gov is not dumb as one might have thought, FBT recovers every cent that's leaked through tax not paid via pre-tax dollars payment.

                          • [Deactivated] on 06/06/2024 - 14:23

                            @[Deactivated]: @Lit Homie you win on this one. Not simple arithmetic.

                            https://www.ozbargain.com.au/node/847861?page=2#comment

                            • Lit Homie on 07/06/2024 - 14:38

                              @[Deactivated]: Oh my lord I had the longest but best reply but accidentally closed it D:. Hi aha not simple but here is the simple version for you Ozbargainers

                              I guess i summarise what I was writing again in under 1minute

                              Example JV buys a Tesla

                              jv - hi i make 100k i get 70k take home at the end of the year.. each fortnight i make 2700 :)

                              nl (novated lease) - hi buy tesla :))) the 60k one but we charge u 20k pre tax for 5 years then another 20k :)))

                              jv - wth 120k for a 60k car??

                              nl - no i take pre tax so ur new income is 80k = you now get 2300 a fortnight :)

                              jv - oh i see so i lose 400 from my pay every fortnight for the next 5 years?

                              nl - yep

                              jv - okay easy so the maths is 400X26X5 = 52000 + 20k at end?

                              nl - yep and we pay for everything for you!

                              jv - i see okay sounds good instead of paying 60k outright + insurance + rego + maintainence = 80k.

                              I only pay 72000!!! Count me in

                              govt - thank you i get to tax the nl, tesla and you :))), count us in

                              nl - excellent i get 120k!!! and can claim all expenses as a deduction :D

                              • Nom on 07/06/2024 - 15:43

                                @Lit Homie: This is part the Lease companies should just leave out entirely !

                                nl (novated lease) - hi buy tesla :))) the 60k one but we charge u 20k pre tax for 5 years then another 20k :)))

                                jv - wth 120k for a 60k car??

                                nl - no i take pre tax

                                If they just started the conversation with

                                each fortnight i make 2700 :)

                                you now get 2300 a fortnight :)

                                jv - oh i see so i lose 400 from my pay every fortnight for the next 5 years?

                                nl - yep

                                Then I think there would be significantly less confusion 😁

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