A novated lease calculator is a tool that allows individuals to estimate the potential savings they could enjoy by entering into a novated lease agreement. By inputting details such as the vehicle price, loan term, and salary, users can quickly see how much they could reduce their taxable income and overall vehicle costs through a novated lease.

A novated lease is a beneficial salary packaging arrangement that involves an employee, their employer, and a finance company. When you enter a novated leasing contract, you effectively lease a car of your choice – this could be a fuel-efficient electric car or a plug-in hybrid. The unique aspect of novated leasing is that your employer will make the lease payments on your behalf directly from your pre-tax salary. This arrangement simplifies budgeting by consolidating your vehicle's running costs, including tyre maintenance and other expenses, into one regular payment.

Using a novated lease calculator, you can quickly calculate how much you could save by comparing your current vehicle expenses against the fixed repayment of a novated lease. The calculator gives you an indicative look at the potential tax savings over the lease term. When your employer makes payments from your pre-tax salary, it reduces your taxable income, potentially placing you in a lower tax bracket and saving GST.

Not only is novated leasing a smart way to finance your next car, but it also has added benefits for electric vehicles, promoting eco-friendly choices. Read more about Electric Vehicle Novated Leasing and Fringe Benefits. Before entering into a novated lease, it's essential to review the terms and conditions carefully to understand your obligations and ensure the agreement aligns with your financial goals. With Driva's novated lease calculator, find out just how much you could save on your next car lease.

To use the novated lease calculator, you'll need to have some basic information ready, including the drive-away price of the vehicle you're interested in, your annual salary before taxes, and the term over which you wish to lease the vehicle. Additional details such as your employment type may also be required for a more accurate estimation. Learn more about How to Set Up a Novated Lease.

Eligibility for a novated lease typically extends to full-time and part-time employees with a stable income. Those interested in utilising a novated lease often include it as part of their salary packaging to acquire a new car, potentially from popular brands like Toyota, or even a plug-in hybrid electric or hydrogen fuel cell vehicle, maximising tax benefits and savings.

To ascertain if you qualify for one of our novated leasing options, it's advantageous to use our novated lease calculator to find out how much you could save. As of 1 July 2022, the ATO's update to the luxury car tax threshold and fringe benefits tax (FBT) exemption may affect your financial circumstances. You can calculate your savings directly by using our car lease calculator which provides an indicative quote based on your specific car choice, whether it's a brand new car or a used vehicle, the purchase price, and your personal taxation advice. For detailed eligibility criteria, visit our page on Novated Lease Eligibility Criteria.

By salary packaging a novated lease, you can reduce the amount of GST on the purchase price, lower your monthly payment, and save thousands over the life of the lease. The calculator uses your vehicle type, the market value, and running cost budgets, including maintenance costs, to provide you with an estimate that is budget-friendly. Keep in mind, residual value at the end of the lease, car cost, and the potential deduction from less tax are also calculated to see your savings in a comprehensive manner.

To find out how much you could save with a specific make and model or to get the vehicle that suits your personal circumstances, use our calculator. It's a handy tool that helps you maximise your buying power and can save you money over time by factoring in all associated costs from the monthly payment to maintenance and the final residual value. For tips on managing your repayments, check out our Novated Lease Repayment Tips.

Novated leasing offers numerous benefits, including significant tax savings, convenient budgeting, and the potential for driving a new car every few years. It's a popular option for employees looking to optimise their financial plans and vehicle expenses. Learn more about the Benefits of Novated Leasing.

Any Australian resident who receives a salary as a full-time or part-time employee and pays tax as you go (PAYG) is eligible for a novated lease. Unfortunately that excludes casual employees.

It all depends on things like the car you choose and your annual salary, but on average Driva customers can expect an annual saving of $2,500 - $11,000*. The higher your running costs, the more you’ll save!

Your monthly repayments plus anything it costs to run your vehicle. You can choose what those costs are, whether it be:

Fuel, Registration, Insurance, Services and Maintenance, Tyres, Roadside Assistance

We’ll discuss everything and allocate a tailored monthly budget so you can avoid unexpected expenses and go with confidence. The best part is, your budget can be carried over to the next month, or paid out with your salary

You can get either a new or second hand car up to 15 years old.

A novated lease vehicle is a passenger vehicle designed to carry a load less than one tonne and less than 9 passengers. We recommend you always check the load capacity especially on utility vehicles. On average, our novated lease clients spend about $48,000 on a vehicle.

If your employer has never done a novated lease before, they may have questions on how it all works, how it impacts them, and how to set it up correctly. Our professional team is always here to assist in explaining the finer details.

Get an indicative quote using our novated calculator

Add a few more details and upload your documents so we can provide you an accurate quote

Accept the quote and we handle your finance application with our panel of lenders

Once approved we handle the paperwork and settle for you with the dealership

Pick up your new car and we handle the payroll set up with your employer

Driva are a digital first financier who use their strong AI loan matching engine to match your profile with the best lender in market. We are so confident in our offering we offer all customers a best price guarantee. That means if you can find a better quote and we can’t match it, we will give a $300 gift card.