r/NovatedLeasingAU

I’m currently weighing up two novated lease providers and would appreciate some input.

I am likely to go with a 2-year lease. One provider is clearly cheaper overall — lower effective rate, no setup costs, and no ongoing management fees. The downside is they don’t offer any gap insurance or redundancy protection.

The other provider is more expensive (higher rate plus fees), but they do include gap cover and redundancy protection.

My main concern is what happens if the car is written off early in the lease. If the insurer doesn’t replace the vehicle like-for-like, I am worried about being left with a shortfall between the payout and what’s still owed on the lease.

From what I can tell, only a few insurers (AAMI, GIO, Suncorp, Shannons) offer replacement with a similar vehicle, but their premiums are quite a bit higher — around $3k–$3.5k annually. I could reduce that with a higher excess, but then I am exposed to bigger out-of-pocket costs for smaller claims (e.g. windscreen damage). For comparison, my current policies with Budget Direct only charge about $40 excess for glass claims.

So I am trying to decide:

• Is it safer to go with the more expensive lease that includes gap/redundancy cover and pair it with a cheaper insurer?
• Or skip the gap cover and instead pay more for a higher-end insurance policy that offers better replacement terms?

Interested to hear how others have approached this.

ETA:

I am still waiting on the quotes for the 2 year option from NLA..

But for a 5 year lease:
The difference in take home pay yearly is around $1590
Difference in lease payments yearly is $2321

I’d like a Landcruiser Prado, a Denza B5L or B8… but realise it needs to be fully EV and under 91k for the FBT exemption. What would you suggest for somebody liking big and boxy? Can’t find anything I love and Zeekr X7, Tesla Y etc are all too low to the ground and very sedan-like.

Can someone enlighten me on buying an EV with a loan under a company ( interest rate 5.7%) vs Novated lease please?

What are the pros and cons of each approach? Considering FBT exception will be available until March 2029, what would happen to FBT rules for an EV bought under a company in March 2030? Would grandfathering apply to in this case as well?

Hi mates,

What are the main things to consider before getting into a novated lease? Any tips for avoiding bad deals or getting screwed?

Also, what’s considered a reasonable maximum interest rate these days for:

- 5-year novated lease

- 3-year novated lease

I’m currently thinking about getting a Tesla Model Y Long Range.

Would really appreciate any advice or things to watch out for.

Thanks!

Wanted to check to see if this was worth it. Lower price due to Jaecoos current 10% off lease deals.

I do have the funds to buy outright of it somehow works out cheaper. I have the ability tocnhathe for free at work so running costs would be pretty minimal.

I have the cash to buy a BYD Sealion 7 outright but my broker says the lease is better because the cash stays in my 6.1 percent mortgage offset. When you factor in the GST saving and the zero FBT, the lease seems like a no-brainer even with a 10 percent interest rate. What am I missing here? Is the math really that lopsided for EVs?

Like all good things, eventually the rules change.

The EV FBT exemption is staying, which is a huge win for most buyers, but from 1 April 2027, the full exemption will only apply to EVs priced at $75,000 or less.

EVs above $75,000 but still under the luxury car tax threshold will move to a reduced FBT discount instead. Existing leases are expected to be grandfathered, so timing matters. 

My take: if you’re looking at an EV in the $75k+ space, don’t sit on your hands.

A lot of people wait until the last minute, then get caught by stock delays, delivery timing, employer setup delays, salary packaging processing, finance approvals and all the usual novated lease admin. The car you want could easily have a three to six month wait - and by then, the window may have closed.

Locking in a clean 3 to 5 year lease before the change could make a serious difference.

For everyone looking under $75k, this is actually a brilliant outcome. It gives the market certainty, gives families confidence, and gives manufacturers a very clear message: sharpen your pricing or miss the market.

We’ve already seen what happens when EVs sit just above the tax-effective zone. Cars in that $91k–$105k bracket struggled, and plenty of brands had to discount heavily to get under the threshold. Think Audi, Mercedes, Kia and others.

Now we’re about to see that same pressure move further down the market.

This could pour molten metal into an already super-heated EV price war.

For city-bound families, this should push EVs from “maybe” to “yes”. Lower running costs, strong tax savings, better model choice, and now a clear runway.

So go forth and shop.

But as always: check for the fleece before you sign.

Hey all,

Has anyone recently applied for a lease with SG fleet?

I have applied since 28 April (with confirmation with the consultant), and being told that it has gone for financial assessment.

What is the lead time for you?

Thanks to you guys I went into the novated lease process knowing I would have to fight for a decent rate with SG Fleet. Unfortunately the only option through my work. Initial quotes came in with 11+ percent. When it came down to finally securing the car I wanted etc I got it down to low 9s two weeks back. Due to various stuff ups and back and forths between SG Fleet and the dealer it took until yesterday to get remittance and delivery of the car. I thought no sweat at least I finally got the car, sure the rate will change some because of the RBA announcement but little I can do about that.

Well this morning I get the final schedule for the lease. Somehow the interest is close to 11.5%! This was a real kick in the guts. Getting this car was a stretch for someone who usually goes second hand, but we were keen to get into the EV space (even before all the Iran stuff started) and so the new car cheaper end of town with good warranties was appealing enough.

I have spoken to and emailed my delivery consultant and the reply has come back that’s the rate of the day, ie tough luck this what you signed up for.

I am lost for words, nearly a 2.5% increase in two weeks. That has taken a significant chunk of savings from doing this lease. Have others had this experience? Any luck fighting this kind of fleecing?

Update:

Ok SG Fleet’s systems and processes are just a mess. Incorrect rate listed on the final schedule was the issue.

Seems crazy that my delivery consultant could escalate it and just come back with the rate listed is what it is. It took another email and my lease consultant chasing it to get a new final schedule with the correct rate. Ended up at 9.235% which is much more in line with what was on the signed indicative schedule.

I gotta say this whole process has been a pain, glad to have the car and hopefully smoother sailing from here.