Anyone purchasing on a Novated Lease?

[ozracer]

Any advice thoughts or recommendations? Through my employer I'm tied to Maxxia but I'm not really sure if its worth it.

I've never leased before and would like to hear peoples thoughts on the leasing experience?

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[louey001]

Not so sure....
But I am working in a credit union, and our rate is very good and no early termination fees...

 

[car]

Make sure you own it at the end!

 

[GAFA]

I did, via SG fleet. My employer allows is to use SG fleet or Selectus. I asked for quotes from both and only SG Fleet was able to negotiate a lease price on the car and provide me with a cost based on the 2015 Mustang. Selectus had no information in their system foe the 2015 Mustang.
Another bonus by leasing, was no need for a deposit! Also if I don't like the car (highly unlikely) at the end if the lease I just give it back or I can re lease (based on it's current value) or purchase it.

This will be by third lease and although the savings are not as good as my first lease 8 years ago, the accountant says it's still with doing.

 

[snake bite]

I've never leased either but I'm going through maxxia. It doesn't cost anything for them to run through the process and give you a guesstimate. Then compare against other loan options. Im going 5 yrs, then you have a balloon pmt in my case 25% . I think the good thing is the gst free bits and the fact you can reduce your taxable income. All running costs and car finance is basically calculated per fortnight for the lease term and Pmt is part before tax and after tax so you dont get charged fbt. You can reduce your fortnightly pmts by not having all their extras like agreed value insurance etc. Anyway no harm in running through it with them.

 

[ozracer]

snake bite they have given me figures they are as follows;
Purchase price 63k
60 month lease or 5 years
Tax savings over 5 years 12,548
tax savings per annum 2,509
Effect on take home pay per fortnight 596.00

That was not fuel no tyres but insurance and rego

There insurance costs are really cheap compared to figures im looking at

My balloon is 25% as well so 15K to pay out lease at end of 5 years

I was going to self manage fuel costs and submit fuel payment receipts

If I dont lease Ill chuck it on my home loan line of credit its only 4 percent so I just need to decide which works the best for me the lease or the line of credit.

If i paid the same amount back on the line of credit per month i would be pretty line ball after interest payment on top.

 

[snake bite]

Yeah that looks right. I've got fuel on mine. I like the idea of the fuel card as that way it will feel free every time I fill up....ha ha ha.

 

[GAFA]

snake bite they have given me figures they are as follows;
Purchase price 63k
60 month lease or 5 years
Tax savings over 5 years 12,548
tax savings per annum 2,509
Effect on take home pay per fortnight 596.00

That was not fuel no tyres but insurance and rego

There insurance costs are really cheap compared to figures im looking at

My balloon is 25% as well so 15K to pay out lease at end of 5 years

I was going to self manage fuel costs and submit fuel payment receipts

If I dont lease Ill chuck it on my home loan line of credit its only 4 percent so I just need to decide which works the best for me the lease or the line of credit.

If i paid the same amount back on the line of credit per month i would be pretty line ball after interest payment on top.

Novated leases should include all running costs including fuel and tyres. If it doesn't then it's not a Novated lease.

From memory the cost to my take home pay per fortnight for a 3 year lease on an Auto GT Fastback was just under $700 and everything is covered ie fuel, tyres

Not YRED shorter the lease, the higher the effect on your take home pay.

 

[ozracer]

yeh I knew that thanks GAFA however Im still getting the benefits Its just I would have to send them the receipts. There are benefits to doing this as the car wont be high mileage I have quite a few friends leasing and they have thousands sitting in their accounts cos the lease over compensated at the start. If you transfer that money back to you it gets slugged with your marginal tax rate. It doesnt mean you cant claim tyres either same applies you just send them the receipt when you buy them and they give you the tax concession benefit.

 

[GAFA]

yeh I knew that thanks GAFA however Im still getting the benefits Its just I would have to send them the receipts. There are benefits to doing this as the car wont be high mileage I have quite a few friends leasing and they have thousands sitting in their accounts cos the lease over compensated at the start. If you transfer that money back to you it gets slugged with your marginal tax rate. It doesnt mean you cant claim tyres either same applies you just send them the receipt when you buy them and they give you the tax concession benefit.

If that's the case, for a 5 year lease I think the costs they have quoted are high perhaps you should try and get a few other quotes for a comparison. What interest rate have they calculated it on?

 

[snake bite]

How many km per year ozracer. Are you going auto or manual transmission

 

[paulb351]

Leasing is now a dead end proposition after the fbt changes removing the advantage. The only plus now is the convenience factor of single payment. If you can get cheap finance the that will be a better outcome, Mustang won't attract factory zero financing so that is out for that particular vehicle as a solution.

 

[ssb]

A work colleague of mine is... Don't know much about it other than the price of the car quoted was very good - misses out on the dealer delivery cost and saves on GST and such - I think the overhead of the lease ends up roughly evening out with the lower purchase price, so it sounded like a good deal.

 

[snake bite]

yeh I knew that thanks GAFA however Im still getting the benefits Its just I would have to send them the receipts. There are benefits to doing this as the car wont be high mileage I have quite a few friends leasing and they have thousands sitting in their accounts cos the lease over compensated at the start. If you transfer that money back to you it gets slugged with your marginal tax rate. It doesnt mean you cant claim tyres either same applies you just send them the receipt when you buy them and they give you the tax concession benefit.

Ok so your quote does include an amount for fuel etc. Well in that case it sounds cheap. Can I ask how old the quote is. The reason I ask is they have changed insurance companies and now its around 45 to 55 per fortnight depending if you have had an at fault claim in the last 5 yrs

 

[ozracer]

my car is auto and petrol wasnt included everything else annaul mileage was 8000 kms
Paul how do ou figure its a dead end proposition there are tax advantages still maybe not as higher as before but over the 5 years its over 12k in tax benefits

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