A good novated lease comparison starts by asking for the numbers that let you reconstruct the transaction. Use this checklist before relying on a headline fortnightly saving.
Finance questions
1. What is the exact amount financed?
Use the finance principal, not just the drive-away price.
2. What is the nominal annual finance rate?
If the rate is not clear, ask for it or calculate the implied rate from the cash flows.
3. How many contractual finance rentals are there?
Do not assume the count is identical to the nominal month count.
4. When is the first finance rental due?
Timing affects the present value and reverse-rate calculation.
5. What is the residual including GST?
Also ask how the finance schedule treats the residual excluding GST.
6. What establishment and PPSR charges are financed?
Financed fees increase the principal.
Salary packaging questions
7. What administration fee applies?
Separate packaging administration from finance interest.
8. Which running-cost numbers are budgets?
Ask what happens to under- or overspend.
9. Can I choose my own insurer?
Provider rules differ.
10. Can I source the vehicle myself?
A separately negotiated vehicle price can be an important part of the total comparison.
Flexibility questions
11. Can I source the finance separately?
Ask specifically about third-party/BYO finance.
12. Does my employer permit a self-managed arrangement?
The employer and administrator need to support the process.
13. What happens if I change employers?
Understand de-novation and re-novation steps.
14. How is early termination calculated?
Request the contractual method, not an informal estimate.
15. What happens at the end of the lease?
Understand the residual process and available contractual options.
Put the answers in one place
Once you have the finance principal, rentals and residual, use the GPS Novated Lease Calculator. Then compare the broader package with How to Compare Two Novated Lease Quotes Properly.
About the author: KK Neelamraju is a finance and credit professional and founder of GPS Finance Group.
General information only. Finance approval and pricing are subject to lender assessment. Tax-sensitive information should be checked against current ATO guidance and, where appropriate, with a qualified tax adviser.
Frequently asked questions
What is the most important finance question to ask before signing?
Ask for the exact amount financed, contractual rental schedule, residual and all finance-related fees. Those figures let you test the underlying finance independently.
What should I ask about changing jobs?
Ask what happens on de-novation, how direct payments work, whether the lease can move to a new employer and what costs arise if the arrangement ends early.
What should I ask about running-cost budgets?
Ask how budgets are set, how claims are handled, whether unused balances are reconciled and which costs are actual provider fees rather than budgeted vehicle expenses.
Sources and verification
These sources support the general framework above. Lender-specific policy, pricing, limits and turnaround times can change and should be checked before a formal application.
Related GPS Finance resources
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Send the quote context and we can review the finance rate, residual, fees and whether a BYO or self-managed finance path is worth exploring.
