Here’s a simple way – or, at least as simple as one can find or use – to calculate the value of a novated lease. For those that aren’t entirely sure of what a novated lease is, read this short example, then get to crunching numbers using this Novated Lease Calculator Stratton Finance
The Basics Of A Novated Lease
Most residents of Australia are hunkered down with personal debt, with the Land Down Under collectively considered the most indebted nation per capita on planet Earth. While some debt is good, and shows that an area’s economy has things worth buying, too much debt – which is exactly what we see in Australia – is never good for consumers, considering debt’s mentally-taxing and financially-restricting nature.
Vehicles are typically secured by Aussies through purchases or loans, called financing agreements. However, with such an open willingness of taking on consumer debt, many Australians might not have enough financial wherewithal to assume such loans.
Novated leases are those that involve three parties: yourself, an employer that offers the novated lease, and whatever group that’s supplying the vehicle.
The benefits of novated leases are far and wide, ranging from fewer taxes paid to be able to purchase nicer vehicles. Employers are also incentivized to offer novated leases, as well, As such, many employed Australians will find opportunities for novated leases via resources already available to them.
Let’s break down the basics of a novated lease calculator, and how ours will help you make sense of your personal finances.
How Much Is That Car Worth?
Once you’ve picked out a car – or several cars, and are first running calculations on how much you’ll owe to make a better decision – find out its purchase price. For this novated lease calculator, that number you owe through a novated lease will be the same as purchase price.
The next step for this novated lease calculator is to determine how much you’ll owe each month. Knowing the total cost is only important for your personal life, whereas the monthly cost is relevant for this novated lease calculator.
After discovering what the annual percentage rate is, multiply it – in decimal form – times twelve months’ worth of payments. That’s what your lease will cost, as seen in this novated lease calculator.
You might not get the total cost right, down to the penny, but with this calculator, you’ll be sure to get a reasonably close estimate.