Novated lease is an agreement between employees of a company and a car company willing to lease out its cars. It is a type of car loan policy where your company solely bears the obligation of the loan. Previously, this type of plan was open to permanent employees of a company. However, the field has taken a new revolution and has attracted almost every employee of a company. You only need to make arrangements with your company and plan on the lease procedure.
Like any other type of car loan available to corporate members, novated lease agreement involves a series of procedures and payment plans. Usually, this leasing scheme is paid in instalments using pre-tax income. This is one of the benefits that attract many people into this scheme. This means that you will have significant saving on your tax. In the long run, you will have lower tax rates. To efficiently determine the value and amount of instalments, you will need to use a fully maintained novated lease calculator.
The charges and amount of each instalment are affected by a variety of aspects. If the leasing company wishes to offer discounts on your overall fees, you will need to re-evaluate the amount of value and amount of costs. You may not be able to determine the value after the exemption of the offer and discounts. You will thus need to use a novated lease calculator to determine the exact amount of your instalments in the long run.
Another factor that will significantly affect the amount of instalment is the residual value of your car. When you are enrolled into a novated leasing agreement, the value of Goods and Service Tax will depend on the residual value of the vehicle. This means that at the conclusion of your lease, the costs, maintenance and related charges on the contract are considered as exemptions on your tax. Only a novated lease calculator will enable you to determine the residual value of your fees and instalments.
Vehicle leasing companies have this calculator on their websites. You will need to visit the site and input the values set therein. Using these calculators is not a challenging practice, it is a simple process that involves the input of figures and output of exact values on your given scheme. The model, year of manufacture, and other aspects related to your car are important details you will need to input in the calculator.