Can You Negotiate a Novated Lease? Tips & Strategies

Yes, you absolutely can negotiate a novated lease, and doing so wisely can lead to significant savings and a lease that better suits your needs. Understanding what’s negotiable and how to approach the discussion will empower you to secure the best deal possible.

1. Research and Preparation: Your Secret Weapons

Before you enter any negotiation, preparation is critical. Here’s how to get started:

• Know Your Requirements: Decide on the vehicle type, model, features, and your budget range. This focus will help you steer the conversation and avoid distractions.

• Market Research: Compare novated lease offers from multiple providers and dealerships. Gather detailed quotes including fees, interest rates, and inclusions so you know your leverage points.

• Understand Your Credit Score: A strong credit score can help you negotiate better interest rates and financing terms.
  

2. What Can You Negotiate?

Lease Costs and Fees

• Purchase Price: The actual price of the car is often negotiable. A lower purchase price means lower lease payments.

• Administration and Documentation Fees: Ask if these fees can be reduced or waived. Sometimes they are inflated or negotiable.

• Delivery and Setup Charges: These might be negotiable, especially if you’re flexible on delivery options.
  

Interest Rates and Financing Terms

• Compare interest rates from various lease providers. Use competing quotes to negotiate better rates with your preferred provider.
  

Lease Inclusions

• Ask if you can bundle services such as maintenance, tyres, insurance, and registration into the lease package. Bundling may cost more upfront, but often saves money overall and reduces hassle.
  

Residual Value and Balloon Payment

• The residual or balloon payment at lease end is usually set by tax rules, but occasionally can be negotiated slightly or structured differently. Ask your provider for options.
  

3. Look Beyond Monthly Payments

Many people fixate only on monthly payments, but it’s crucial to consider the total cost of the lease including fees, charges, and balloon payment. A slightly higher monthly payment might mean better inclusions or lower total cost at lease end.

4. Timing Your Negotiation

Dealerships and lease providers often have more flexibility:

• At the end of the financial year or calendar year when clearing stock

• During sales events or promotions

• When new models are released and older models need moving

Choosing the right time can strengthen your bargaining position.

5. Example Negotiation Checklist

• Get quotes from at least three providers/dealerships

• Ask for a full breakdown of all fees and charges

• Negotiate on purchase price and administration fees

• Check interest rates, use credit score as leverage

• Request bundling of maintenance, tyres, and insurance

• Confirm balloon payment terms and options

• Time negotiation for sales or clearance events

• Read all contract terms before signing
  

6. Sample Script to Negotiate Your Novated Lease

“Hi, I’ve researched several novated lease options and I’m really interested in leasing through your service. However, I noticed the administration fees and delivery charges seem a bit high compared to my other quotes. Is there any flexibility to reduce these fees?

Also, I have a good credit rating and was wondering if you could offer a better interest rate or include maintenance and insurance in the package? I’m looking for a comprehensive, fully maintained novated lease and want to ensure I get the best value.

Lastly, I’d appreciate any advice on the balloon payment and if there’s room for adjustment or structuring to make it more manageable at lease end.”

Need Expert Help?

Negotiating novated leases can be complex, but you don’t have to do it alone. At Novated Finance Australia, we guide you through every step, help you understand what’s negotiable, and connect you with trusted providers to get you the best deal possible.

Contact us today for personalised advice and start saving on your novated lease!

FAQs

• Can you negotiate the price of a novated lease?

  Yes, you can negotiate various costs, including the car’s purchase price, administration fees, interest rates, and lease inclusions.

• What should I focus on during negotiation?

  Look beyond monthly payments; negotiate total lease cos,t including fees, balloon payment, and bundled services like maintenance and insurance.

• When is the best time to negotiate a novated lease?

  End of financial year, sales events, or when new models arrive are ideal times to get better deals.

• Can a good credit score help me negotiate better terms?

  Definitely. A strong credit history gives you leverage to ask for lower interest rates and improved financing terms.

• Is it possible to include services like maintenance in the lease?

  Yes. Negotiating to include maintenance, tyres, insurance, and registration can save you money and hassle over the lease term.