The short answer
Compare the per-pay cost of the same car, term, kilometres and state, then check the rate. The rate tells you how expensive the loan is. It cannot see anything charged outside the finance line, and that is where a lease can recover a low rate.
What an interest rate cannot see
- Management or administration fees — charged per pay, outside the finance.
- Establishment and other one-off fees that are not capitalised into the finance.
- Running-cost budgets — fuel or charging, servicing, tyres, registration. Budgets are your money held for you, but a budget set high takes more from each pay now.
- Insurance and add-ons bundled into the deduction.
- Deductions beyond the finance — extra pay periods collected and held as a reserve.
How much a fee is worth, as a rate
On the illustrative lease ($55,000 over 60 months at 8.00%), adding a $40 a month fee outside the finance costs the same as raising the rate to 9.25%. A provider one point cheaper on rate but $40 a month dearer on fees is not cheaper.
What to compare instead
- Get quotes on the same car, options, term, kilometres a year and state. If any of these differ, the comparison is meaningless.
- Compare the total pre-tax and post-tax deduction per pay, and over the whole term.
- Separate the finance payment from fees and running-cost budgets on each quote.
- Calculate the real interest rate on the finance payment alone.
- Ask each provider for the fees outside the finance in writing.
Why we compare per pay
Our Compare Your Quote tool rebuilds your quoted lease — same car, term, kilometres and state — at millarX pricing, and shows the difference per pay as well as the rate. We are a provider, so the comparison is against our own lease; we show every line so you can check it.