There are two big saving areas with a Novated Lease. The first is when you buy the car and the second is in the running costs.
No matter what car you buy, Novated Leasing can save you money.
| Hire Purchase / Mortgage | Novated Lease | |||
| Vehicle Purchase | ||||
| Cost of car | $33,000.00 | $33,000.00 | ||
| Fleet Discount | - | ($1,650.00) | ||
| GST Saving | - | ($2,850.00) | ||
| Total cost of car | $33,000.00 | $28,500.00 | ||
| FBT Base Value* | $5,700.00 | |||
| Ongoing running costs | ||||
| Lease repayments | $486.82 | 4% | $444.20 | 6.50% |
| Fuel | $216.67 | $216.67 | ||
| Service costs | $41.67 | $41.67 | ||
| Tyres | $23.25 | $23.25 | ||
| Rego | $74.25 | $74.25 | ||
| Insurance | $85.18 | $85.18 | ||
| $927.84 | $885.21 | |||
| Pre Tax - Running costs | - | $329.74 | ||
| Post Tax - Running costs | - | $475.00 | (To offset FBT Base Value) | |
| GST saved on running costs | - | $80.47 | ||
| GST paid on running costs | - | $43.18 | ||
| Annual saving | ||||
| Effect on monthly salary | $927.84 | $672.40 | $3,065.22 | |
| ATO Residual Values | $8,017.05 | $8,017.05 | ||
| Assumed PAYG marginal rate | 32.50% | 32.50% |
*Assumptions: Tax rate is 32.5%, the vehicle will travel approximately 20,000km’s per year,
the mortgage rate is 4% and the lease rate is 6.5% per year