Novated lease interest rates, explained

Most novated lease quotes either show no interest rate or show one that is not the rate you pay. These guides show how to work out the real one, how to compare providers fairly, and what to check before trusting any comparison — ours included.

• What interest rate am I really paying on my novated lease?How to work out the real interest rate on any novated lease quote from four figures — amount financed, payment, term and residual — with a worked example you can check yourself.
• Flat rate vs comparison rate vs effective rate on a novated leaseThree different numbers get called "the rate" on novated lease quotes. What each one measures, why a flat rate looks so much lower, and which one to compare.
• How to work out the amount financed on a novated lease quoteMany novated lease quotes never print the amount financed. How to recover it from the residual and residual percentage, and the GST mistakes that throw the rate out by points.
• Why the lowest novated lease rate is not always the cheapest leaseAn interest rate only measures the finance. Fees outside the finance line, running-cost budgets, payment counts and insurance decide what leaves your pay — here is what to compare instead.
• How to tell if a novated lease comparison or rate table is reliableEight questions to ask any novated lease comparison site, rate table or quote checker — including us — before you rely on its numbers.
• Novated lease rate disclosure in Australia: what 1,753 quotes showmillarX analysed 1,753 real novated lease quotes from 53 providers. 68.2% disclosed no interest rate, and 92.5% of the rates that were disclosed understated the real cost.

Looking for our own rates? See millarX rates by term — no commission added to the rate.