Can Anyone Share The Lowest Novated Lease Effective Interest Rate Quote They Got from Maxxia?

Lperthhunter on 03/10/2024 - 14:33
Last edited 03/10/2024 - 14:33

Can anyone share the effective interest rate they got from Maxxia in recent months? Not the nominal rate but the pre-tax effective rate based on Reddit changyang1230's super helpful NL calculator.
So my wife's employer uses Maxxia exclusively for salary packaging and there's no option to self-manage/find another financier.
Their initial quote's effective interest rate (based on ) was very high. When I asked them why it's so high compared to a competitor (major player) quote of sub 8% (for another employee/company but same lease parameters), they lowered the rate to 13%. This is for an EV, $29k finance value and $13k residual value ex GST and 3 year lease.

Financial Novated Lease

Related Stores

Maxxia
Maxxia

Comments

  • Drakesy on 03/10/2024 - 14:41
    +2

    Yeah stick it out, i've heard 8-9% if you really squeeze em.

    • perthhunter on 03/10/2024 - 14:45

      Wow that'd be amazing - I'll see what I can get..

  • spackbace on 03/10/2024 - 14:43
    -1

    Ever think it's because of your own credit file/history?

    • perthhunter on 03/10/2024 - 14:44
      +3

      No because in both cases, Maxxia and competitor haven't done credit check - this is just the quote stage.
      Maxxia did say the super high rate is the standard rate for the employer.

    • changyang1230 on 03/10/2024 - 15:19
      +6

      Nah Maxxia is the culprit. They have exclusive arrangement with lots of government agencies, public hospitals etc, and they know their exclusive and monopolistic position so they jack up their "interest rate" to suck it all in.

      They even have an exclusive arrangement with one of the biggest hospitals in Victoria (Monash Health), where the hospital gets to receive sign-on kickback PLUS not provide GST tax refund, but in turn Maxxia gets to keep their much-higher-than-market interest rate.

      https://www.news.com.au/finance/work/at-work/staff-pay-up-to…

      • spackbace on 03/10/2024 - 15:31
        +3

        Oh 100% I know they're one of the worst, and love to hide the rate and instead show big flashy 'savings'

  • oscargamer on 03/10/2024 - 15:09
    -5

    Do you have to use Maxxia?

    • MS Paint on 03/10/2024 - 15:20
      +4

      So my wife's employer uses Maxxia exclusively for salary packaging and there's no option to self-manage/find another financier.

      • oscargamer on 03/10/2024 - 15:46
        +1

        Then you don't really have any leverage unfortunately.

    • JIMB0 on 03/10/2024 - 21:47
      +3

      You can pay cash and not have a lease. The tax savings are mostly gobbled up by interest and fees anyway.

      • changyang1230 on 04/10/2024 - 01:09

        Both things can be true - NL companies do make a killing from being the middleman of this tax incentive, but people can still save plenty of money (after carefully the pros and cons) even compared to paying cash.

        In my situation (which is close to being optimal where I am on top tax bracket, stable job, has a house offset, unaffected by subsidy etc): I am 46,000 dollars better off compared to paying cash over 5 years, even after 8.6% effective interest rate by the NL company.

  • wannagrababargain on 03/10/2024 - 15:59

    My feeling is that they don't make much interest profit off a $29k loan @ 8% so jack up the rates. They'll make plenty with $60k @ 8%. Kind of playing with numbers to meet a pre-determined profit margin.

    • perthhunter on 05/10/2024 - 23:49

      True.. but the competitor's quote for my friend is for the same financed amount.

  • ragrum on 03/10/2024 - 16:13
    +1

    Are you sure self-managing isn't possible? They have a very strong financial incentive to make the self-managed option hard to find or imply that it's not possible, but everything I've seen seems to indicate that it's always an option.

    • perthhunter on 06/10/2024 - 00:00

      Yes I was surprised as well but basically the employer's confirmed it.

  • Iwantthebestprice on 03/10/2024 - 17:23
    +1

    Tesla model Y 24 LR, 3 year lease, salary above $150K and I was quoted 8.16% via SG fleet.

    • oscargamer on 03/10/2024 - 19:14
      -6

      Which has absolutely no bearing on the op's situation, but thanks for your input

      My recent quote from sgfleet for $30k MG4, 30000km, 3 year, $130k for 7.62% also has zero assistance for the op

      • Iwantthebestprice on 03/10/2024 - 22:56
        +5

        Let the OP speak for himself, who are you to say it might not assist. With this info he can go back to Maxxia and attempt to negotiate, or he can look at my information and be like I can only get 8% by getting car X at salary Y. Your quote is actually very relevant to the OP because your quote was for a similar model and value. So now he has 2 points to work off. No harm in having this information at his disposal.

        • oscargamer on 04/10/2024 - 07:10
          -2

          How does it help the op?
          The op can't use sgfleet.
          The op can't cross-shop against another nv provider.
          The op can only use Maxxis.

          It's like me walking into the only store in a tiny town and haggling over the cost of a bag of potatoes, that are cheaper in another shop in another town, that I physically can't get to.

          • Iwantthebestprice on 04/10/2024 - 13:48

            @oscargamer: Well maybe then OP has come to the realisation, the same as you, that the bag of potatoes you are buying are a rip off and decides not to buy them.

            Knowledge is power in this game, and OP now has it at his disposal to decide weather to proceed or not.

            As for you, I would recommend you don’t buy the more expensive potatoes because it’s convenient.

  • ColtNoir on 04/10/2024 - 09:42

    Honestly, I've yet to find a better-priced NV than when I was SGFleet at Optus. I believe they're one of the only/few that handle both the lease and financing, so profit from both.
    2.92% (comparison 3.4%) in 2019.

    My new companies with SGFleet and they're about 8-9% on average.

    • trapper on 04/10/2024 - 11:38

      That is cheap, but also 2019 was a very different time with the RBA base rate only 1.5%

    • perthhunter on 06/10/2024 - 00:09

      I think you're right about SG Fleet.. that's what I've been hearing too.

  • trapper on 04/10/2024 - 11:34

    13% is still really high…

    I'm paying 7.13% via Toyota Fleet Managment

    • Aureus on 04/10/2024 - 18:31

      That seems really low. Did you get it a while ago when interest rates were lower? SG Fleet is quoting me 9.12%

      • trapper on 04/10/2024 - 18:53
        +1

        Paperwork went though this week, haven't even picked up the car yet.

        • Aureus on 04/10/2024 - 18:58

          Sweet. Thanks. Will have to give them a call next week.

          • perthhunter on 06/10/2024 - 00:05
            +1

            @Aureus: BTW I've been told it might be an apples-to-oranges comparison. The Toyota quote is for a self-managed lease where SG Fleet is still needed to handle the salary packaging and will add on a fee. Your 9.12% from SG Fleet is for a fully managed lease.

  • CantonasKungFuKick on 04/10/2024 - 13:03
    +1

    I got 9.39% quote from SGFleet a few months back

  • dandandan on 04/10/2024 - 19:14

    So if your company doesn't have an agreement with anyone, will one of these companies do they majority of the paperwork for your company or whateve is involved?

  • perthhunter on 05/10/2024 - 23:57
    +3

    FYI an update. Maxxia shared the screenshot of their calculator. Turns out the new quote is closer to 10% (13% had GST included whereas the competitor's is ex GST) and that's the best they can do. It's still a significant saving based on @changyang1230's really useful calculator (thanks very much!) so we're going ahead with it.
    The competitor quote was useful as the initial Maxxia quote was much higher than 10%.

Login or Join to leave a comment
Login Join