A good novated lease calculator should offer you, the consumer with a number of relevant figures. It should take key points like your salary, lease term, car type and annual kms and supply your answer. The answer should have information about your payments and your savings. Good novated lease calculators will also offer information about potential savings when compared with non-packaged options. Salary packaging calculators, on the other hand, go a little deeper. These take the figures from the salary packaging schedule which is done for you by a novated lease consultant. These salary packaging calculators offer additional information on your savings as they contain more concise information.
When to use each
So, when do I use a novated lease calculator and when do I use a salary packaging calculator? The simple answer here is that it’s all down to timing. If you are considering buying a new vehicle, but you’re not sure which one, you should try a novated lease calculator. This is because you can find out rough figures even when you have only a rough idea of the type of car you want (small/large/4×4 etc.). This is helpful as it gives you real answers early in the process. A salary packaging calculator is more useful as you get closer to making your decision. This is because a salary packaging calculator bases savings on more precise figures. For this reason its best to consult with a consultant first so that you know what figures to use.
What will the consultant tell me?
Using detailed figures and up to date pricing a novated lease consultant will be able to offer additional value through a salary packaging schedule. Once they have some basic details from you they will set out to find the more detailed figures found in the salary packaging schedule. These figures which include elements like the vehicle purchase price and the exact amounts expected for fuel and will be as accurate as possible. In the end they will send you this salary packaging schedule which will outline all the costs of the car lease. These figures can then be used by you, in a salary packaging calculator to establish exactly how much savings will be made.
What do I do once I have the results of my salary packaging calculator?
Once you know what the difference is between packaging and not packaging you will be ready to make your decision. With a good salary packaging calculator you will be given three results. The first will be “no packaging”, the second will be “Salary sacrifice only” and the third will be “package with post tax employee contribution”. On completing the calculator you will know which one leaves you in the better financial position. You need to take this insight and inform your consultant that you want to take the next steps.
Looking, comparing and contrasting is critical in all financial decisions. Knowing what impact different decisions on car type (this can include things like fuel consumption and servicing needs) is important and these insights can change your decisions. Novated leasing involves a lot of numbers and at times this can become confusing. Taking the process step by step and staying up to date on how these decisions impact your eventual decision can offer real certainty in your financial life.