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June 26, 2014

Formulas for Estimating Your Monthly Lease Payment

When a driver requests a quote on novated leasing there are many aspects that the leasing company will take into account behind the scenes to provide you both with a quote and an analysis. Online calculators do much the same thing, but use much more general estimates, whereas quotes use specifics. Here are the sort of factors lease companies will ask to be able to prepare your quotes:

Novated car lease –

Input –

a.       Monthly net salary (to assist with salary analysis & saving estimate)

b.       Make, model, variant and body type of vehicle (to establish pricing levels)

c.       Annual km. (to assist the leasing company set running costs and budgets)

d.       Lease period (this is used to establish both finance payment and budgets)

e.       State in which lease will be taken (each state has different government and registration charges)

f.       Option to include fuel charges, insurance and maintenance charges


Output (in monthly amounts – in AUD) –

a.       Lease cost

b.       FBT applicable

c.       Luxury Car charge applicable

d.       Employee contribution

e.       Tax payable by employee

f.        Net salary after tax


Assumptions –

1.       Employer needs to be a full FBT payable employer

2.       Full maintenance includes tires, registration and CTP

3.       All calculations are based on generic assumptions and all prices are indicative amounts only

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