The novated lease calculator offers an accurate estimation of savings for selected vehicles under a specific novated lease scheme.The term novated lease refers to a new form of motor vehicle lease,common in Australia.Typically, it is a contract between three parties that allows the employer to lease a motor vehicle on behalf of an employee.The employee is responsible for the lease and the payments are deducted from his pre-tax income.
Keeping In Mind The Salary Package And FBT Changes, The Novated Lease Calculator Helps Calculate The Following:
* Indicative repayments
* Benefits of long-term or short-term loans
* Interest rate
* Residual value.
It uses a number of suppositions, and then assists in figuring out a repayment scheme that suits the individual’s salary package.
Benefits of Novated Lease
It has a number of benefits for the employee.
* It lowers tax, therefore maximizes take-home salary.
* It gives flexibility in choice of vehicle type and lease term.
* It provides budgets for financing projected fuel, maintenance, insurance, and registration.
* It saves on GST.
* It makes driving a new vehicle easy and cost-effective.
Used vehicles that are less than eight years old are also eligible for lease, which helps the customer with lower budget. The employer benefits freedom from the burden of maintaining a vehicle fleet for the employees.
How Novated Lease Calculators work
The savings on it vary depending on the number of miles a vehicle runs, income of the employee, and other related factors. To find the right scheme for a particular income category, special calculations are involved.
This is made easy as they are accessible online. This helps a customer obtain a loan with the best financial term available. It comes with accurate loan comparison software.
It Needs The Following Information To Calculate The Best Loan Structure:
* Interest rate and time
* Loan and standard amount
* Price of vehicle
* Concessions and discounts available
* Maintenance charges
* Annual income or basic salary.
Based on the above, the calculator presents a comparative statement of proposals available from different financial organizations. It also evaluates the interest, depending on the value of the vehicle and repayment scheme. After working out probable discounts or reserves offered, it shows the fortnightly or monthly repayment loan amount.
Often, calculators are updated with the announcement of budgets and other changes in the economic scenario. Therefore, they are competent in providing reliable information relating to it.
Using Novated Lease Calculator
The calculators are user-friendly. With basic financial information, the customer can quickly evaluate the rates and charges of diverse novated lease schemes. The calculations are done automatically based on the facts and figures provided.
If a car allowance is offered by the employer, selecting it can be financially helpful for both the employee and the employer. The procedure of estimating the amount, submitting the loan application, and calculating the repayments can be a formidable task. It is therefore wise to use the free online calculators to analyze different propositions.