Australian Auto Lease Calculator
Calculate your vehicle lease payments with GST considerations
Lease Payment Summary
Understanding Auto Leasing in Australia
How Auto Leasing Works in Australia
Auto leasing in Australia is a financing option that allows you to use a vehicle for a set period while making regular monthly payments. At the end of the lease term, you typically have options to:
- Purchase the vehicle at the predetermined residual value
- Return the vehicle to the lessor
- Refinance the residual value
- Trade in for a new lease
Key Terms Explained
- Vehicle Price
- The total purchase price of the vehicle including GST (10%). This is the starting point for calculating your lease payments.
- Down Payment
- The initial payment you make at the start of the lease. A larger down payment typically results in lower monthly payments.
- Lease Term
- The duration of your lease agreement, typically ranging from 24 to 60 months. Longer terms usually mean lower monthly payments but more interest paid overall.
- Interest Rate
- The annual percentage rate (APR) charged on the lease. This rate can vary based on your credit score and market conditions.
- Residual Value
- The estimated value of the vehicle at the end of the lease term, expressed as a percentage of the original vehicle price.
- Business Use Percentage
- The proportion of vehicle use for business purposes, which affects your GST claims. Must be supported by proper documentation.
GST Considerations
In Australia, GST (Goods and Services Tax) is set at 10% and applies to vehicle leases. Key points about GST:
- GST is included in your monthly lease payments
- Business users can claim GST credits based on their business use percentage
- GST claims must be supported by valid tax invoices
- Private use portion of GST is not claimable
Frequently Asked Questions (FAQs)
What's the difference between leasing and buying a car in Australia?
Leasing typically involves lower monthly payments than buying, as you're only paying for the vehicle's depreciation during the lease term plus interest. However, you don't own the vehicle unless you choose to purchase it at the end of the lease term. Buying means higher monthly payments but you'll own the vehicle outright once paid off.
Can I claim the full GST on my lease payments if I use the car for business?
You can claim GST credits proportional to your business use percentage. For example, if you use the vehicle 80% for business, you can claim 80% of the GST paid on lease payments. You must maintain proper records to support your claims.
What happens if I exceed the kilometre limit on my lease?
Most leases in Australia come with annual kilometre limits (typically 15,000-25,000 km). Exceeding these limits will result in excess kilometre charges, usually calculated per kilometre over the limit.
Can I modify a leased vehicle?
Generally, modifications are not allowed without the lessor's permission. Any approved modifications must usually be reversed before returning the vehicle, or you may face additional charges.
What fees should I expect when leasing a car?
Common fees include:
- Upfront fees (establishment fee, documentation fee)
- Monthly account keeping fees
- Early termination fees
- Excess wear and tear charges
- End of lease disposal fee
Is the residual value negotiable?
The residual value is typically set by the leasing company based on industry standards and predicted depreciation. While it may be slightly negotiable at the start of the lease, it's usually fixed once the agreement is signed.
What happens if I want to end my lease early?
Early termination usually involves penalties and fees. Options might include:
- Paying an early termination fee
- Transferring the lease to another person
- Trading in for a different vehicle
- Paying out the remaining lease payments
Tips for Getting the Best Lease Deal
- Compare offers from multiple lessors
- Negotiate the vehicle price before discussing monthly payments
- Understand all fees and charges involved
- Consider the total cost of leasing, not just monthly payments
- Check the kilometre allowance matches your needs
- Review the wear and tear guidelines
- Keep accurate records for tax purposes