Novated Lease Calculator
We Help You Understand The Calculations Behind A Novated Lease
We Help You Understand The Calculations Behind A Novated Lease
So you are cruising the internet looking for novated leasing calculators to try and crunch some numbers but everywhere you turn, every calculator spits out slightly different numbers. You have done your best to put in the correct information on each one yet you still get different answers. Confusing isn’t it! We will try our best to debunk some of the numbers behind the calculations so you can actually have a good understanding of what is going on and why things can change so much.
You will notice after immediate scrolling, hunting for an interactive calculator, you won’t find one on this page. You won’t actually find one anywhere on this page. The exact reason you find yourself here is probably the same reason why we don’t want to put a calculator up.
Firstly, the numbers always change. We just think it adds to the confusion. Some may call it analysis paralysis. You hunt long and hard, research your socks off (which is the right thing to do) but when you start crunching numbers and try to compare line by line and it never seems to work out you will end up getting analysis paralysis.
Analysis paralysis is the process where the constant hunt for answers merely adds to the complication of the situation because it is hard to make a decision based on the information you are given. So, at Novate it, we refuse to add to it! We are a calculator free zone.
Plus, if you request a quote from Novate It, all of our partners will give you a tailored, personal quote exactly for your situation, with your salary, your kms, your running expenses, talk you through your situation and give you what you actually want. Getting a quote is obligation free and easy. So why waste away your life with constant googling looking at 100 different calculators?
Now, we know some people won’t like this. They will say, “I just want to do a calculation without having to talk to someone, you just want my details”. We think, most of the time, these responses are mostly because they are worried about talking to a salesperson.
The options from there then become simple.
Option 1, don’t request an obligation free quote from Novate It and continue down the analysis paralysis cycle.
Option 2, request a quote from Novate It and get a personalised, accurate quote and actually get the numbers in black and white not some airy fairy quote from the internet. Then, if you don’t like it or don’t want to proceed you options are, tell your leasing consultant, thank you but no thank you or never answer their calls again.
Simple right!
Anyway, enough waffling on let’s dive in.
It is borderline impossible to compare something if there is more than one variable missing. With a novated leasing quote, this is often the case. This is the root of most people’s problems when trying to compare or understand their novated lease quote.
The first thing we would say with this then is, try not to overthink it. You will end up in a spin. These are some of the variables which will impact your novated leasing calculation. Some will seem more obvious than others however we will be as thorough as possible.
A pretty obvious one but a very meaningful one. If you change the price of the vehicle you want, even if it is marginal it will impact the calculations and thus there will be an impact on your take home pay. This can be especially poignant when you start to hit things like the luxury car tax threshold.
When you are using a calculator or speaking with a novated leasing company, the amount of kms you say will impact your quote big time. There can be a big knock on effect with expected kms as it will impact servicing and fuel as well. Simply, more kms = more fuel budget and more kms = more servicing on your vehicle will be required.
While this is an independent budget usually as part of your running costs it is directly linked to expected kms. It is good to discuss these variables in detail with your leading consultant to try and get the quote as accurate as you can. For example, as I type this, fuel in Australia is well over $2 a litre. Most people with existing novated leases will not have thought fuel will hit $2 so their budgets will be a little out of whack. All you have to do is call your novated company and adjust your budget.
If you are using an online calculator to do quotes, you will probably find the cost of fuel they are using isn’t always accurate and as you know now, this is a big variable so your quote will always be wrong.
As you read on, you will begin to see how all of the moving parts impact one another with a novated lease calculator and servicing is definitely one of them. We are lucky these days that a lot of new cars come with fixed price servicing which is pretty cool. If you have an older car or a vehicle without a fixed price offering again, it is just best to talk to your novated leasing consultant to hash out what the servicing could look like over the term.
A novated lease is a financial product and with that comes costs. In this case the interest rate in which the bank or financier is giving the money out for the car. Often, a novated company won’t disclose the rate and as mentioned above when there are more than one variable it can be hard to work out.
Ask your consultant what it is, and if they get fluffy maybe drill down a bit more to make sure you get a good deal. Or, request a quote and a Novate It partner can reach out to you and answer any questions regarding rate you may have.
Most, basically all novated companies will charge a monthly fee to manage your lease. This is often very clearly stated in a novated leasing quote, however worth asking if you can’t see it. They range from around $20 – $50 per month. If you are worried, a good exercise is just to call the company’s support line. If they answer and are helpful, they are worth every penny. If they aren’t that good, irrelevant if they have a cheap fee they might not be worth your while.
Most, basically all novated companies will charge a monthly fee to manage your lease. This is often very clearly stated in a novated leasing quote, however worth asking if you can’t see it. They range from around $20 – $50 per month. If you are worried, a good exercise is just to call the company’s support line. If they answer and are helpful, they are worth every penny. If they aren’t that good, irrelevant if they have a cheap fee they might not be worth your while.
While most people will already have these factored into the car price, just remember you can include any extras you want on the car at the start of the lease. Think long and hard about this one because you aren’t meant to add any capital value to the vehicle after the lease begins but you can kit it out big time at the start.
Just think, if you want a bull bar on your landcruiser get it added at the beginning. Or if you are keen on some different wheels on your BMW, order them up front.
They are big moving parts to a novated lease and thus the big things that will impact your numbers when getting novated lease calculations and quotes. If you want to talk to an expert and get a quote specific to your situation, fill out one of our forms today and a Novate It expert novated leasing partner will be in touch.
Find out exactly what a novated can do for you! Request a quote today, speak to a leasing expert and they will prepare a free quote so you can see the numbers in black and white.