If you are hooked up with an employer that is gracious enough to offer the novated lease salary package, you may be debating leasing a new vehicle. While there are many benefits that you can cash in on when it comes to novated leases, you should always do the math to figure out if that sort of leasing is a better option than traditional auto financing. This can typically be done with a novated lease calculator.
You can find these calculators online at many financial websites. They are intended to help you discover what your tax savings amount will be and what the overall lease cost would be for your desired purchase. Always keep in mind that these novated lease calculators are intended to give you estimated figures. There’s always going to be some room for error when calculating. Novated Lease Calculator at https://www.strattonfinance.com.au/novated-lease/online-quote.aspx
When searching for a helpful novated lease calculator you should ensure the one you use takes all of the following attributes into account:
Vehicle Type – When you input the make and model of your desired vehicle the calculator should be able to estimate the running cost of that specific vehicle. This will allow you to adjust your budget to the ongoing vehicle costs.
Vehicle Value – Be sure you can input the actual purchase price of the vehicle. You don’t want a calculator that estimates the average value as that won’t be as accurate, especially for used cars.
Maintenance Costs And Fuel Consumption – Being a vehicle leasee doesn’t stop at making the car payment. You need to budget for things like fuel costs, tires, and regular servicing. A good calculator will take these things into consideration.
Annual Salary – This should be the amount of your salary before the car payments are going to take effect. This will help you to determine what your tax savings would be after the payments start coming out of your pre-tax income.
Lease Term – This is a basic figure that every calculator should include as it greatly affects the overall cost of the lease and your tax savings.
Actual Lease Payment – In order to run the appropriate calculations about your novated lease, the calculator should have an input for the actual monthly lease payment amount.
Annual Mileage – This figure should be considered and you should do your best to estimate it as accurately as possible. If you need to, check to see how many miles you put on your car last year to get the right figure.
Some Tips For Using Novated Lease Calculators
We encourage you to always start with the dream car you would love to have. This will give you a ceiling calculation and you can go down from there if it doesn’t fit your budget correctly. Be sure to input different lease terms and see what the difference would be in price. This will help you to establish what the ideal monthly payment and lease term would be for your budget.