Finance calculators are useful however where they are left unexplained they can seem confusing. For this reason we set out to explain some of the key details around them. Many of these calculators offer an insight into where you will be at the end of you lease. Others can offer comparisons of how one option will compare to another. A salary packaging calculator is a comparison calculator that compares a salary packaged solution with a non-salary packaged purchase.
What do you need in each case?
Novated Lease calculator– In this case you just need a few notes like the type of car, annual kilometres, lease term and your salary. Once you input these you are given a rough estimate of savings and payments.
With the salary packaging schedule – Here the key numbers are needed from your novated lease consultant to create the schedule. You will need to give him or her your salary amount, the vehicle you want, your estimated annual kilometres and your pay cycle. The outcome of this will be that you will be given a document which informs you of the lease costs on whatever time period you specified. As this takes in more accurate figures it tends to be more accurate than the novated lease calculator figures.
With the salary packaging calculators – Here the key numbers come from the salary packaging calculator. You need to input these into the calculator to gain the three alternative answers. The outcome informs you as to the most cost effective packaging for you.
What do the terms mean?
Lease payments – These are the payments towards the finance and purchase price of the vehicle.
Maintenance – This includes all types of maintenance from servicing to unscheduled replacements
Fuel – This includes all fuel running costs for your vehicle.
Registration and CTP renewal – This is the usual registration and third party insurance which is required for all vehicles.
Establishment fee – This is the fee for setting up the lease.
Comprehensive insurance – this refers to the more extensive insurance which can cover you and your vehicle.
Lease protection insurance – This is insurance for the lease itself, in most cases it just covers redundancy however it can cover other eventualities.
Fleetcare management fee – this is the fee for managing and administering the lease.
Novated lease calculators offer a lot. They tell us in general terms how much can be saved by novated leasing with a number of general figures. They do offer insights, however they may not offer the full picture. For more detailed estimates, which take more information on car costs and fees into account, we look to the salary packaging calculator. The best advice is to use all calculators along the way but always remember to use the novated lease calculator first. Then, once you know what car you want you need to get a salary packaging schedule. You can then use this schedule to calculate more precise figures.
