Lender Insights

The nominal annual lease rate and effective annual rate are not the same. The nominal rate annualises the periodic finance rate without compounding; the effective annual rate refle…

A novated lease quote can contain finance fees, salary-packaging administration charges and budgeted running costs. Separate these categories before comparing providers because a b…

BYO novated lease finance may be possible where the employer and salary packaging administrator accept separately arranged vehicle finance. Availability depends on their rules, doc…

Eligible electric cars can receive an FBT exemption under current Australian rules, materially changing the salary-packaging result. The exemption does not change the mathematical …

You cannot reliably derive a novated lease interest rate from total repayments divided by principal and years. A lease with a residual needs a discounted-cash-flow calculation usin…

Potentially. Some employer programs allow the nominated salary packaging administrator to keep managing payroll while the employee sources approved vehicle finance separately. The …

For a standard car using the commonly applied ATO eight-year effective-life methodology, the commonly used minimum residual percentages are 65.63% at 12 months, 56.25% at 24 months…

A novated lease and car loan should not be compared on interest rate alone. A novated lease adds employer salary packaging, tax treatment, a residual and provider administration; a…

The contractual lease rental and payroll deduction are different layers of a novated lease. Payroll may use a different frequency and can include running-cost budgets, administrati…

You cannot reliably derive a novated lease interest rate from total repayments divided by principal and years. A lease with a residual needs a discounted-cash-flow calculation usin…