How to check a novated lease quote
Quotes usually show one fortnightly figure that mixes finance, running-cost budgets and fees. To compare providers, pull out the finance payment, work out the interest rate it implies, and check the residual against the ATO minimum residual values (46.88% of cost for a 3-year lease). This checker does the arithmetic in your browser. Source: ATO.
General information only. We do not rank providers or recommend one. We may be paid a referral fee; see how this site makes money.
Residual comparison uses the ATO minimum residual values: 1 yr 65.63%, 2 yr 56.25%, 3 yr 46.88%, 4 yr 37.5%, 5 yr 28.13%.
How to read a novated lease quote
- Find the amount financed. It may differ from the drive-away price, for example if GST is removed. Use the same GST basis for every figure you enter.
- Separate the finance payment. Running-cost budgets (fuel or charging, tyres, servicing, insurance, registration) are estimates the lessor holds for you and are not interest. Leave them out of the checker.
- Note the term and the residual. The ATO minimum residual values are 1 yr 65.63%, 2 yr 56.25%, 3 yr 46.88%, 4 yr 37.5%, 5 yr 28.13% of cost (ATO). A residual set differently changes the payment, so two quotes with different residuals are not directly comparable.
- Read the implied rate. Any establishment or admin fee rolled into the finance payment raises the implied rate, which puts fees and interest on one scale.
- Compare totals. Finance payments plus the residual, minus the amount financed, is what the finance costs you before tax effects.
Questions to ask every provider
- What are the establishment, monthly admin and early termination fees? (We hold no verified fee data; ask each provider.)
- Is the rate fixed for the term?
- Which running costs are budgeted, and what happens to unspent budget at the end?
- What happens if I leave my employer, and what will a payout cost?
- Are dealer discounts or fleet pricing passed on in full? Can I see the dealer invoice?
- For an EV: will you confirm in writing that the car meets the ATO exemption conditions as you understand them? (EV FBT exemption)
Can I choose my own novated lease provider?
Ask your payroll or HR team which providers you can use. Then ask each one for a quote on the same car and term and test each quote here.
Check the whole package
Put the implied rate into the novated lease calculator to see the after-tax cost and compare it with buying outright. Background: how a novated lease works and residual values.
Frequently asked questions
Can I choose my own novated lease provider?
Ask your payroll or HR team which providers you can use.
How do I compare novated lease quotes?
Compare the same car, term and residual. Separate the finance payment from the running-cost budgets, work out the interest rate implied by the finance payment, and compare the total paid over the term including the residual.
Can you negotiate the interest rate on a novated lease?
You can ask. A second quote for the same car and term gives you a figure to compare. We hold no verified market rate data.
What is the best novated lease company?
We do not rank providers. We have no verified data on rates, fees or service to back a ranking, and we may be paid referral fees. Use the quote checker on each quote you receive.
By . Published by Abdisalan Awale, ABN 64 886 470 398 (about us). Last reviewed 17 Oct 2026 against the sources on our sources page. Not yet reviewed by a qualified third party. How we calculate: methodology.