Novated Lease Calculator Benefits

A novated lease agreement is a three-way agreement between the employer, employee and the finance company where the employer takes the responsibility of repayments of the vehicle on behalf of the employee. However, there are benefits for all the three parties involved. The chief advantage remains with the employee as he becomes the owner of the vehicle without spending much. The other two parties also get significant benefits through this deal and their benefits are also worth mentioning.

A novated lease calculator can be used to count the benefits obtained from novated lease. Using a novated lease calculator, you can determine the amount you will save in a year. The best benefit that one receives through this deal is the discount in tax. As the money is deducted from pre-tax salary, the employee gets significant benefit here. Plus, he also faces significant advantage in terms of income tax paid that year. The employee does not have to think about the pending repayments.

Novated lease agreement is pretty much flexible, as the employee and employer can negotiate on the choice of the car being purchased through this deal. Using calculator, you can manage to save some money. The calculator is also useful for the employer, as he can easily calculate the incentive he is going to provide to his employee. Using calculator, the employees or the employer can calculate the cost of the lease and repayments.

Using the same tool, you can also get information about the residual value of the vehicle. The calculator provides you with a way to know the market value of the vehicle when the lease term will expire after one, two or three years. In addition this, a novated lease calculator allows you to determine the benefits of short term or long term loan. You can compare these benefits and decide which loan will suit you most.

Before you use this calculator, you need to get some pieces of necessary information. The first thing is the data applied by you. The calculator will calculate on the basis of this data, so it must be genuine and 100% accurate. The things that you will probably need include price and type of the vehicle purchased, length of the lease, tax calculation method used for fringe benefits and the state of the vehicle. In addition to this, the employee will also have to provide the exact figures about his annual salary. He also requires telling how many kilometers he will approximately drive in each year. A novated lease calculator is useful though, but it cannot suit all kinds of employees.