Matching the finance schedule to my lease quote
The novated lease finance schedule/ vehicle lease details document is provided at the final step of the setup process along with the deed of novation. We recommend you read the terms and conditions for the full details of your lease and if required seek financial advice.
A novated lease is a fixed term contract which is not designed to be broken early in the lease. Always select a lease term that matches how long you intend to keep the vehicle.
This document outlines the final details of the finance lease you have chosen including:
- The Vehicle Description
- The Vehicle Identity Number (VIN)
- The Vehicles Engine Number
- The Lease Details
- Novated Finance Lease
- Finance Period – The length of time you have elected to have the vehicle.
- Payment Type – Advance 2 months Deferred.
- Payment Period – Monthly
- The Finance Details
- Finance Lease Rental inc GST
- Residual Value inc GST
- Any Establishment or Origination fee included in the Package.
- Early termination information
Matching the Finance Schedule to my Lease Quote.
Example:
- (A) 60-month lease (Finance Period)
- 2 months deferred (Payment Type)
- (B) 58 (Number of finance instalments)
Novated Lease Quote Rental - $1,000
Finance Schedule Rental - $1,034.48
(Novated Quote $1,000 x 60 (A)) = $60,000
($60,000 / 58 (B)) = $1,034.48 Finance Schedule Rental
The novated lease package (Finance & running Costs) is collected from your salary over the term period (60 months).
The novated finance rental is paid over 58 instalments. This is known as “deferring the finance for 2 months”.
The reason all novated leases have a 2-month deferral is to allow you a chance to have funds come out of your salary and accumulate in your novated package as a surplus. This best practice means that a finance payment is not due on the day you collect your vehicle when no funds are available.
Your salary contributions will start as soon as possible after settlement of the finance to ensure that funds start accumulating.
The total amount being paid is the same in both scenarios, we simply condense the finance down to allow your account to accumulate funds.
We can’t pay for the finance rentals or associated running costs if the funds don’t physically exist in your account.