MillarX is offering 0.5% off the interest rate on a BYD Sealion 7 when purchased through our transparent novated leasing finance over a 5 year lease.
- Standard rate: 8.3%
- Discounted rate: 7.8%
- Saving: Up to $790 over 5 years
Stacked on BYD's current $54,990 driveaway (Premium model), which enjoys substantial savings on a novated lease as it’s FBT exempt
Cash vs Novated Lease (5 Years)
| Outright (Cash) | 5 Year Total | Novated Lease | 5 Year Total |
|---|---|---|---|
| Driveaway price | $54,990 | Net pay reduction | $806.09/month |
| Running costs | $305/month | Total (after tax) | $48,360 |
| Running costs total | $18,300 | Balloon payment | $15,713 |
| Total cost (5 yrs) | $73,290 | Total cost (5 yrs) | $64,073 |
| Total savings | $9,217 | ||
| Interest saved (5.5%) | $15,122 | ||
| Net benefit | $24,339 |
Total saving via Novated Lease : $9,217, and you get to keep the cash in the bank for 5 years and save $15k off mortgage interest!
It's a Great deal, but might not be for everyone
Pre-empting some comments - novated leasing isn’t always the best solution for everyone. It is not a magic way to get a free car. Some people may prefer to purchase a second hand car a few years older to save money instead which is perfectly valid. However – if you have decided on purchasing a new (or near new) car, it is a very cost-effective way to finance it and has clear benefits over paying cash or using a car loan.
MillarX vs "Other" Novated Lease Providers
Novated leasing can get a bad reputation due to high interest rates and dodgy “junk” insurances tacked on by other novated leasing providers. Many other providers hide behind the “tax” savings and charge you 12-15% interest and tack on unnecessary insurances and services.
We started MillarX to provide clear transparent pricing to our customers. We clearly disclose our interest rates and all fees and charges on our quotes. We let you pick your own insurance to maximise the savings, and we don’t charge brokerage to source cars for you (you can find your own car and we will do the rest!)
Below is an example for the same car above between a MillarX novated lease, and another large novated lease provider. We have remove the items that will always be the same between providers (running costs, balloon payment).
| Other Providers | 5 Year Total | MillarX | 5 Year Total |
|---|---|---|---|
| Vehicle finance (12%) | $56,774 | Vehicle finance (7.8%) | $50,760 |
| Junk insurance | $5,700 | Junk insurance | $0 |
| Total cost | $62,474 | Total cost | $50,760 |
| Total saving | $11,714 |
*Both include comprehensive insurance.
*“Junk insurance” = unnecessary additional insurances that provide little value in most cases
Do your research
You can use the calculator on our website to check any other vehicles or personalise it to your specific circumstances (salary, location, etc). There are multiple independent novated leasing calculators available as well – posted in the forums on this website, and also in the Australian subreddit https://www.reddit.com/r/NovatedLeasingAU/
Final Points
Often leasing providers provide their quotes in different formats so it is difficult to get an apples for apples comparison on interest rates, fees and charges. We have a quote comparison tool on our website so you can identify the headline interest rates and do an apples for apples comparison.
If you're buying a new EV on a Novated Lease, the real question is: Are you getting a clean deal or getting loaded with hidden costs?
Edit: The calculator on the website will show 7.8 for 5 years, if you wish to have a 3 or 4-year lease please email Ben@Millarx.com.au to receive our special rate.
Nice write up.