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 / MortgageNovated 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$486.824%$444.206.50%
Service costs$41.67$41.67
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 rate32.50%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