A note on the calculators involved in a novated lease
Making a big purchase decision is both a time consuming and resource consuming activity. When it comes to the tools you use to prepare for the purchase analysis it’s important you know what can offer an insight and what cannot. It’s equally important to understand specifically what each tool will tell you and whether or not the results will bring you usable information. With all this in mind we thought we would write up a quick note on the use of both a novated lease calculator and a salary packaging calculator.
The Novated Lease calculator
Many will know this calculator; many will have used it at some point. The prime idea behind it is to give you a general impression of the savings and benefits before you have decided on the exact vehicle. The novated lease calculator also helps by allowing you to quickly recalculate using different figures for mileage, salary, lease length and vehicle type. This can be very helpful as it can help you come to a decision about the basic building blocks of your lease. In most cases this calculator is the first tool lease customers go through before contacting us here at Fleetcare. While the calculator is very helpful it must be noted that the figures are rough and may change depending on the vehicle you decide to go with.
The salary packaging schedule
In many cases this document is step two for the novated lease customer. Like the results from the novated lease calculator the figures are dependent on what vehicle you choose to go with. However unlike the novated calculator these figures are much more accurate. This is because the figures in the salary packaging schedule will be based around your vehicle of choice.
The salary packaging calculator
Once most people get their salary packaging schedule they proceed to set up their novated lease after a short period. For many this is the end of the story, however for some who like to budget their annual spending there is an extra calculator to help. The salary packaging calculator, although not needed before you make a decision on your lease, can help you understand how the lease will impact your bottom line. This calculator will take the figures from your schedule and will tell you how much net disposable income you have after lease charges are accounted for.
The quick guide
Like we said in the introduction, big financial decisions should be given a proportionate amount of time and consideration. While many will know from experience that a novated lease will suit their circumstances it can still help to run the numbers over in order to make the largest tax and income saving. For some the idea of calculators can sound daunting however the figures needed in both cases above are readily available and the results are well explained. In the end most of the number crunching will be done by the novated lease agent but it can always help to have your own set of figures with which to understand the process.
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