Save $1,000's with a novated lease
Novated lease interest rates and fees explained
How much is the car you wish to novate?
Dandi W
Top service, above and beyond
Reagan has gone above and beyond to make it as easy and as straightforward as it can be. This isn't my first Novated Lease, but definitely the best...
David
Sean Edema at NLA was excellent
Sean Edema at NLA was excellent.
He was informative, efficient and accessible.
I recommend his services highly.
Joshua A.
5 stars for NLA!
I cannot recommend Payton and NLA enough if you are looking for a novated lease. Even if you don’t end up going with NLA they should be your first conversation....
Interest rates on a novated lease
A novated lease is like any other financing arrangement where interest is charged.
There are 3 main driving factors that may influence the rates you are charged;
- The type of vehicle you purchase
- The age of the vehicle
- Your credit worthiness
As it has been widely publicised in the media interest rates are increasing. Currently interest rates start from 7.7% p.a..
The type and age of vehicle
Generally, new cars will attract lower interest rates than used cars. Used cars purchased from a reputable car dealer will generally attract lower rates than a car purchased privately. Although in recent times due to the car shortages, this is not always the case.
Your credit worthiness
Like any finance you arrange, your credit worthiness may affect the interest rate you are asked to pay. Those with a strong credit rating will generally get a better rate than those with abad credit.
Novated lease fees
A novated lease may include management fees for a Fully Maintained lease and one-time establishment fees.
Management & Administration Fee
A novated lease company may charge management fees between $25 and $50 per month. This is the fee for providing you with a fuel card, managing your budget, ensuring you pay the right amount for servicing and all payments relating to the financier.
Establishment Fees
Most lenders will charge a nominal establishment fee to help cover their costs of approving your finance, setting up the contract. Most establishment fees are around $250 but can go up to $500 depending on the lender.
What lenders are looking for?
Ultimately lenders are wanting to ensure that you are capable of meeting the interest and repayments of the lease. As your employer is involved in making the payments to the leasing company before you receive your pay, there is an adding level of protection for the lenders.
Lenders will most often want to ensure you are not on probation, or if you are that you are in a similar role to your previous job.
