Novated leases in Australia
Discussion
That was inclusive of the balloon payment at the end. If I was to source finance elsewhere with a comparable balloon (~$16500) over a 24mth period id be up for a lot more than 30k
If I dont use all the money allocated to maintenance it will get refunded back to me at the end of the term. I had not included the maintenance or fuel costs in that figure. Maintenance costs based on standard dealer prices, however I am able to get the works done at an independent.
If I dont use all the money allocated to maintenance it will get refunded back to me at the end of the term. I had not included the maintenance or fuel costs in that figure. Maintenance costs based on standard dealer prices, however I am able to get the works done at an independent.
No there is a balloon of $16500 on a $29500 drive away car, according to the rate at which you are able to depreciate the vehicle under the tax law. 20% per year I think? So from my calcs the car will end up costing me $29300 after 24months inclusive of the balloon, which I will need to find in 24months or sell the car.
I have put the paperwork in for the company to sign, so hopefully in a couple of days (next week probably) ill have the keys to a 2008, BMW 323i E91 touring wagon. 2.5l six with 6speed steptronic auto.
Its Titanium metallic silver which is not my first preference, however as far as I can tell there was about 6 options that were NOT ticked on the options sheet. On top of this its got a set of staggered offset 19” CSL wheels with new tyres on it and I’m also getting the original run flat wheels. Front discs/pads are being replaced as part of the sale, and other than that it only needs rears in 6 months or so.
Will get something up in readers rides soon.
I have put the paperwork in for the company to sign, so hopefully in a couple of days (next week probably) ill have the keys to a 2008, BMW 323i E91 touring wagon. 2.5l six with 6speed steptronic auto.
Its Titanium metallic silver which is not my first preference, however as far as I can tell there was about 6 options that were NOT ticked on the options sheet. On top of this its got a set of staggered offset 19” CSL wheels with new tyres on it and I’m also getting the original run flat wheels. Front discs/pads are being replaced as part of the sale, and other than that it only needs rears in 6 months or so.
Will get something up in readers rides soon.
For those considering going down this route, what I found worked best was to work out what you were going to pay after tax, subtract the yearly maintenance/fuel/rego/road side assist/insurance costs/stamp duty from the quote as most of these things are fairly static. this then left the remaining car finance cost as the sole component and made it easy to compare.
I set up a spread sheet and put in the values that they supplied for maintenance and fuel. The values I used for the rego/stamp duty can be calculated and apportioned over the cost of the lease while values for insurance road side assistance were arrived at from online commercial quotes. I left all of these static for my comparison purposes.
I found that varying the term of the lease by 6 months or so have a significant effect on the costs for some reason. I didn’t want to lock in for two long a period either as they want the full interest payment due if you leave as an exit fee. Lease comes with a lease guard insurance so that if I’m made redundant the lease is covered for up to 15k. so in my mind if I have work lined up for the next 9 months or so then the lease will be fine even if I’m made redundant. Other than that I’ll just have to enjoy the car for the next 2 years.
I set up a spread sheet and put in the values that they supplied for maintenance and fuel. The values I used for the rego/stamp duty can be calculated and apportioned over the cost of the lease while values for insurance road side assistance were arrived at from online commercial quotes. I left all of these static for my comparison purposes.
I found that varying the term of the lease by 6 months or so have a significant effect on the costs for some reason. I didn’t want to lock in for two long a period either as they want the full interest payment due if you leave as an exit fee. Lease comes with a lease guard insurance so that if I’m made redundant the lease is covered for up to 15k. so in my mind if I have work lined up for the next 9 months or so then the lease will be fine even if I’m made redundant. Other than that I’ll just have to enjoy the car for the next 2 years.
been going through paperwork for the last week it seems, so much paper work, did manage to get them to revise the quote again after getting it re-jiged to a drive away deal, means i can depreciate the first rego and transfer duties under tax and saves almost another K post tax so happier again.
pick up is scheduled for later today.
pick up is scheduled for later today.
Hi Rob,
sounds like a nice predicament to be in.
i thought i understood it but i'm not sure i got it all correct, that part of the reason i didn't go for something more expensive in the first place.
that part that i think i have got wrong, is the final repayments. im not sure if its an amount that i pay before tax or after tax, i'm also not sure if there will be a GST levied on top of the amount that was initially quoted, i stupidly assumed that it was post tax like everything else. will be fuming if its not.
part of the savings come from paying for things like fuel/servicing labor/parts/tyres before tax, so they are bought with dollars that would normally be taxed at your nominal tax rate. anything left over from this nominated maintenance budget (mines ~4k for 2 years) gets returned to you at the end of the lease, but you will pay tax on it i think, i still need to clarify this with the lease company as this info is coming from a mate who is approaching the end of his lease.
car still going well, haven't had time to get it nice and clean/take some photos of it yet.
sounds like a nice predicament to be in.
i thought i understood it but i'm not sure i got it all correct, that part of the reason i didn't go for something more expensive in the first place.
that part that i think i have got wrong, is the final repayments. im not sure if its an amount that i pay before tax or after tax, i'm also not sure if there will be a GST levied on top of the amount that was initially quoted, i stupidly assumed that it was post tax like everything else. will be fuming if its not.
part of the savings come from paying for things like fuel/servicing labor/parts/tyres before tax, so they are bought with dollars that would normally be taxed at your nominal tax rate. anything left over from this nominated maintenance budget (mines ~4k for 2 years) gets returned to you at the end of the lease, but you will pay tax on it i think, i still need to clarify this with the lease company as this info is coming from a mate who is approaching the end of his lease.
car still going well, haven't had time to get it nice and clean/take some photos of it yet.
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