Decode your novated lease quote
The figures from this quote as they were transcribed, and what we found in them — the interest rate it doesn't print, every line against the market, and the questions worth sending back.
Stuck on a word on their quote? Look it up in the glossary.
Start with the price of the car. A quote can only be checked against the car it is for — the price sets the FBT, the GST the financier claims back, and whether the amount financed makes sense. Put it in the card below and the rest of this page opens up. A make and model are optional. Until then, what you see is a worked example.
Working from an advertised weekly price rather than a quote? Start there instead — it works out the price of the car, which is what this page needs.
No FBT on this car. Battery-electric and under the $91,661 threshold, so the whole package comes out of pre-tax pay with nothing to contribute back.
Registration and CTP vary a lot between states. Leave blank for a national average.
This is an example quote, so you can see what the tool does. Start typing to use your own.
The interest rate on this lease
Everything inside the finance payment, not only interest — solved from the payment, the amount financed, the residual and the term. Over 5 years it costs $27,988 in interest — $8,253 more than the same lease would cost at 7.5%, what a comparable secured car loan charges.
What we found
Ordered by what each one costs you over the term.
- Rate
Finance is priced at 10.50%
$8,253The quote doesn't state a rate. Solved from the finance payment, it works out at 10.50% — 3.00% above a comparable secured car loan at 7.50%, costing $8,253 more over the term.
- Insurance
Insurance is $2,990 a year — the high end of the market
$7,725That is 3.5% of the vehicle's value, against a market range of 1.7%–4.6%. At the low end this line would be about $1,445 a year, a difference of $7,725 over the term. Packaged insurance is often placed by the provider, who may earn commission on it.
- Budget
Running-cost budgets look padded by about $272 a year
$1,360The maintenance budget is above what this car should need at 15,000 km. You pre-pay the difference from every pay — $1,360 across the term. Budgets are a lever providers use to shape the headline figure.
- Fees
The management fee is $494 a year
$120Above the $200–$470 range seen across providers, so worth $120 over the term.
- Framing
The lease costs $27,988 in interest over the term
Quotes lead with tax and GST savings. Those are real — but so is the interest, and it is rarely shown beside them. Judge the lease on the two together.
- Adds up?
The stated deduction is $553 a year more than the listed items
You entered $900.19 a fortnight coming out of your pay, which is $23,405 across 26 pays a year. The lines you listed add up to $22,852 a year. The $553 gap is close to the luxury car adjustment this vehicle would attract — about $553 a year, because the financed amount is above the $69,674 car limit — but the quote doesn't name it.
- Residual
The residual is at the ATO minimum
28.13% of the amount financed, the lowest the ATO accepts for a 5-year term. You will owe $24,342 at the end — that part is not optional.
- GST
The GST credit is capped correctly at $6,334
One eleventh of the $69,674 car limit. Above that limit the GST isn't recoverable, so this is the most that can come off the price.
Does the quote add up?
Every line you entered, put on an annual footing.
| Line | Per fortnight | Per year |
|---|---|---|
| Finance payment | 650.19 | $16,905 |
| Fuel or charging | 24.23 | $630 |
| Servicing | 22.00 | $572 |
| Tyres | 16.50 | $429 |
| Registration | 32.00 | $832 |
| Insurance | 115.00 | $2,990 |
| Management fee | 19.00 | $494 |
| Listed items add up to | 878.92 | $22,852 |
| They deduct from your paythe pre-tax deduction you entered, × 26 a year | 900.19 | $23,405 |
| Unexplained difference | $553 |
Send these back to them
Every one comes from a finding above. A provider who answers all of them plainly is worth dealing with.
- What interest rate is the finance written at, which financier is it with, and can you match a lower rate?
- Can I use my own comprehensive policy instead of the one bundled in this quote, and do you receive a commission on it?
- How were the running-cost budgets set, and what happens to any surplus at the end of the lease — is it refunded to me?
- Is the management fee negotiable, and what does it cover?
- Your itemised inclusions don't add up to the salary deduction — what is the difference?
So what now?
There is about $17,458 of avoidable cost in this quote. Worth fixing before you sign — but also worth knowing whether a lease still beats buying the car outright, even at these numbers.
Opens the calculator already filled in from this quote — your salary, the car, the term, and the 10.50% we just solved.
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General information only — not financial or tax advice. This tool explains how novated leasing works under Australian tax law and models the figures you enter. It does not take into account your objectives, financial situation or needs, and it does not recommend any lease, financier or vehicle. Results are estimates in today's dollars using 2026-27 rates — a real quote will differ. Your employer must agree to the arrangement, and packaging can affect other income-tested entitlements. Consider advice from a registered tax agent or an Australian Financial Services licensee before committing.