Compare your novated lease quotes
Here's a hard one... do you actually know how much you are paying for you novated lease.
Its great that at the end the budget balance is returned to you via your payroll (or billed if over spent) but in the beginning how do you compare novated leases....
First step is to make sure that you are comparing apples to apples, which, when you're new to novated leases isn't the easiest to recognise.
The FBT base value in the quotes should all be fairly close to each other. As the FBT Base value is the drive away cost of the vehicle excl registration and stamp duty, not only that... it's shown on every quote with any fleet provider unlike the interest rate.
If there are big variations then time to ask questions about the car, right year model, specs and options match etc.
Dig into you novated quotes but don't get caught by the low interest rate (if there is one shown) as regularly we have revealed to clients, low interest rates are a hook in the hope that you align low interest rate to low finance cost, pushing for quick decisions with no questions... So often played upon.
So in the quote drag out the number of finance payments over the term, can't see it then it's probably the same as the term.
Now your looking for the rental amount and it must include GST.
And finally the residual amount and it also must include GST.
Rental amount times(x) number of payments plus(+) the residual amount is the finance cost for the novated lease. Not to be confused with the actual cost of the novated lease.
So all that information is simply a number you will now be able to see how they compare like rather than using an interest rate as the 'good deal' measurement.
Want to check the ATO Residual Guidelines too?