Is 100,000kms too high for buying second hand?

[Skylarking]

... my point was people seem to burn through so much cash these days just buying things and throwing them out a couple of years later.

Welcome to the world of environmentally conscious consumers, an oxymoron if there ever was one

 

[panhead]

Does anybody buy a 100k car now? Surely they are all leases.

I'm guilty, I still pay cash for cars.




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[panhead]

Welcome to the world of environmentally conscious consumers, an oxymoron if there ever was one

I don't consider myself to be 'oxy'.







.

 

[Derekthetree]

I'm guilty, I still pay cash for cars.

Me too, was more a comment on society at large.

 

[chrisp]

Does anybody buy a 100k car now? Surely they are all leases.

IMHO (novated) leasing has to be one of the greatest rip-offs going. Yep, the leasee certainly ‘saves’ tax but ends up paying the equivalent to the lease company as ‘rent’ for the vehicle. And on top of that the leasee wears all the risk with the transaction. Lost, or changed, your job - you pay, car worth less than the residual - you pay, car scratched, modified or damaged - you pay.

I got quotes in leasing a car and it worked out cheaper to borrow the money than lease - and came without the risks associated with leasing. After about three years I’d fully own it (whereas with a lease the lease company would still own it).

I’d certainly recommend anyone who is considering a lease to carefully check the numbers and don’t be hoodwinked by the claimed ‘tax savings’ and you really need to work out your total spend (including any tax benefits and leasing costs).

 

[J_D 2.0]

IMHO (novated) leasing has to be one of the greatest rip-offs going. Yep, the leasee certainly ‘saves’ tax but ends up paying the equivalent to the lease company as ‘rent’ for the vehicle. And on top of that the leasee wears all the risk with the transaction. Lost, or changed, your job - you pay, car worth less than the residual - you pay, car scratched, modified or damaged - you pay.

I got quotes in leasing a car and it worked out cheaper to borrow the money than lease - and came without the risks associated with leasing. After about three years I’d fully own it (whereas with a lease the lease company would still own it).

I’d certainly recommend anyone who is considering a lease to carefully check the numbers and don’t be hoodwinked by the claimed ‘tax savings’ and you really need to work out your total spend (including any tax benefits and leasing costs).

Bingo! Novated leasing doesn’t stack up at all. I came to the same conclusion as you when I looked into it. All your doing is taking tax money away from the government and giving it to the leasing company. It doesn’t save you money at all.

 

[Anthony121]

Does anybody buy a 100k car now? Surely they are all leases.

I purchased 2 in 2017 for cash $$$

 

[VS 5.0]

IMHO (novated) leasing has to be one of the greatest rip-offs going. Yep, the leasee certainly ‘saves’ tax but ends up paying the equivalent to the lease company as ‘rent’ for the vehicle. And on top of that the leasee wears all the risk with the transaction. Lost, or changed, your job - you pay, car worth less than the residual - you pay, car scratched, modified or damaged - you pay.

I got quotes in leasing a car and it worked out cheaper to borrow the money than lease - and came without the risks associated with leasing. After about three years I’d fully own it (whereas with a lease the lease company would still own it).

I’d certainly recommend anyone who is considering a lease to carefully check the numbers and don’t be hoodwinked by the claimed ‘tax savings’ and you really need to work out your total spend (including any tax benefits and leasing costs).

There is a reason the novated leasing industry was up in arms a couple of years ago when there was a push to change the treatment of these arrangements.....and they weren't defending the benefits to their customers.

 

[Skylarking]

All your doing is taking tax money away from the government and giving it to the leasing company. It doesn’t save you money at all.

The benifit of leasing depends on an individuals circumstances and desires. The bottom line depend on vehicle cost, salary, how many kms they do each year and how many years they lease for. What they get and what it costs defines whether its a goer....

If you are paid $ 1/4 mil a year and lease the cheapest Ferrari @ $399,988 for 2 years, you'll only see a $1500-$ 1600 monthly impact. That's less than $40k to drive a $400k Ferrari for two years... Some may consider that great value...

As always money is king... and as Mel brooks said, its good to be king

Sadly, the rip off is to the public purse which carries the cost of such extravagance which, now that manufacture is dead, can only benifit the vehicle importers.

For the curious, see this novated lease calculator and play with the prospects of being very well paid...

Novated Calculator

Just choose your vehicle type; input your estimated vehicle cost, annual kilometres, salary and lease term, and see how little it will cost to drive a new car with an ORIX Novated Lease!

www.orix.com.au

Edited: in my haste i thought the salary impact was monthly but it's weekly (so the said Ferrari will cost about $170K over the two years of the lease... (and some may still think that's ok...)

 

[Anthony121]

The benifit of leasing depends on an individuals circumstances and desires. The bottom line depend on vehicle cost, salary, how many kms they do each year and how many years they lease for. What they get and what it costs defines whether its a goer....

If you are paid $ 1/4 mil a year and lease the cheapest Ferrari @ $399,988 for 2 years, you'll only see a $1500-$ 1600 monthly impact. That's less than $40k to drive a $400k Ferrari for two years... Some may consider that great value...

As always money is king... and as Mel brooks said, its good to be king

Sadly, the rip off is to the public purse which carries the cost of such extravagance which, now that manufacture is dead, can only benifit the vehicle importers.

For the curious, see this novated lease calculator and play with the prospects of being very well paid...

http://[URL]https://www.orix.com.au/novated-calculator/

[/URL]

The calc doesn't actually say how much to put into the lease.