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Novated Car Lease Calculator
If trying to manually work out exactly how much you can save with a novated lease gives you the sweats, try using our handy calculator.
Not only can you see just how much you can save, it’ll also help you figure out just how much you can afford, so you can avoid your in-house beancounter breathing down your neck.
Get the car you want within your budget and save big bucks.
What is a Novated Lease?
Technically speaking, a novated lease is a three-way finance arrangement between you, your employer and Clear Lease. When you’re talking like a human being, it means your employer deducts your novated lease payments from your pre-tax salary, reducing your total taxable income. Sweet deal!
Your novated lease repayments are deducted every pay cycle. These repayments cover the whole shebang of your vehicle costs – the lease on the vehicle, insurance, registration, maintenance, fuel and more. And it’s all covered in one easy payment.
Without you lifting a finger, your employer makes the payment to Clear Lease and our team then makes the payment to your lender. Any surplus funds you initially budgeted for your operational costs is then held on your behalf. This is managed and drawn on when your accounts are due by the Clear Lease team. No sneaky bills, you’ll be covered every step of the way.
When you first set up your novated lease, the ATO outlines a residual amount due at the end of the loan. This is the balloon payment. You’ve probably heard of it, if you’ve had a car loan in the past. It short, it means you’ll pay what’s left at the end, so you can own the vehicle or renew your novated lease. You could even sell the car and use the funds from the sale to pay out the balloon payment. But if you’re feeling like something shiny and new, you could always upgrade.
Benefits of a Novated Lease
Higher GST savings
There’s nothing quite like showing the taxman who’s boss. One of the main reasons to get a novated lease is for the tax savings. Your lease costs and vehicle expenses come straight out of your pay before the taxman gets his grubby mits on your hard-earned cash. It means you’ll pay less tax and have more disposable income.
Another benefit of a novated lease is you don’t pay GST on the purchase price of the vehicle. That’s 10% of the price right back in your pocket. That’s thousands of dollars up front. And then there’s still stacks more tax savings to come. Ripper!
Regular servicing covered
Car servicing is right up there with going to the dentist. A pesky thing we have to do, but we certainly don’t want to do. It’s big hit to the hip pocket and you walk away with nothing exciting or new. Boring! Plus nine times out of 10 it ends up costing us more than the quote – and that stings.
With a novated lease you don’t have to worry about the cost of servicing. Full servicing and maintenance is included in your novated lease repayment plan. You’ll know exactly how much you’ll be up for from the start of your lease, helping you budget more effectively.
Running costs sorted
Running costs can really stack up. The good thing about a novated lease plan is it can cover all of your running costs. Everything’s covered – insurance, servicing, fuel, registration, roadside assistance, tyres, vehicle maintenance and even car washing. Just set up exactly what you want included in your plan at the start.
We can help you estimate things like fuel and running cost and build this into your repayment plan. By planning ahead, you’ll avoid nasty bill surprises, all while reducing the amount of income tax you pay.
It’s important to get your digits right to get an accurate lease payment. To use the novated lease calculator, you’ll need to enter:
- The price of the car
- Your annual salary
- Estimated annual kilometres
- Your desired lease term
Once you’ve got all these figures, you can use the lease calculator to estimate your costs and savings.
Our Novated Lease Calculator also lets you enter information on running costs too. Things like:
- Average running costs for fuel
- Average costs for tyre budgeting
- Average annual service costs
- Your insurance and registration costs
Of course, each lease is tailored to your needs, so if you want to include or exclude something our team can personally adjust your schedule…and price accordingly.
Go on, give the calculator a whirl and then chat to our team too about how we can get you into your new wheels. We’re here to help you through every stage of the process – and can even estimate you Fringe Benefits Tax (FBT) employee contribution. It’s a good idea to chat to your accountant to get some tax advice to make sure a Novated Lease is the right fit for you.
We might be biased, but let’s say Hell yes. As more people learn about the benefits of a novated lease, more people are being converts. It’s the smartest way to put your tax dollars to work for you and is often the most cost-effective option to finance your new vehicle.
Like most interest rates, it can vary depending on your personal situation. But generally speaking, the rates are between 5 and 8%. These rates are based on a few things:
- Your credit history
- The amount borrowed
- The age of the vehicle
- Home ownership
- Your loan terms – length of lease and the amount of your balloon payment (outlined by the ATO)
Get in touch to see how we can get you the best rate for your new wheels.
Sure is. With a novated lease, you don’t need an upfront cash deposit. So go ahead and invest your saving in the next big thing.
A car loan won’t let you save money on running costs. Sorry car loans. But with a novated lease you can make significant tax savings on the purchase of the car, fuel, servicing and running costs. Plus you don’t have to pay GST on the price of a new vehicle. No car loans, you can’t do that.