Novated leasing vf ssv redline

[Kman]

(My first post... and enjoying these forums on VF2.)

Be aware when sourcing your own insurance, ensure you have been quoted on paying out the whole lease, not just vehicle value.
A couple of years ago when a hailstorm hit, a number of colleagues on novated leases were left out of pocket because they had sourced their own insurance for car value only.
As always, it pays to do your homework thoroughly.

 

[VESSVBLACK]

I'm on a 3 yr novated lease with my Redline. For me it works out to about $12-15K more in my pocket after 3 years compared to a car loan or pulling from the redraw.

Your repayment over 3 years for the novated lease, you could have owned the vf in 3 years if on finance.
I personally think novated lease is ok for a business or someone using the car as a work hack and hasn't got the time to worry about insurance, fuel, servicing ect
I was looking into a lease car but bought my car on finance, with some deposit, low interest rate, low repayment, the actual running costs and repayment as opposed if had of gone lease works out cheaper and im paying something off that will be mine at the end of the term.

 

[Forg]

Your repayment over 3 years for the novated lease, you could have owned the vf in 3 years if on finance.

That's not necessarily true, in fact if people are doing their numbers properly and not over-extending themselves it should rarely be true. It really shouldn't cost considerably more to lease a car over 3 years than to finance at about the 4.25% that mortgages currently are at; not if you include ALL costs in your calculations.
Don't forget that someone living in a city (which is 85% of Australians innit?) doing a 100km/day commute is going to be lucky to get away with less than $5k in just fuel for a LS3 car. Then there's rego, insurance, tyres. It's a mistake to compare 36 monthly lease amounts to just the purchase-price of the car.

 

[HFL]

Be aware that Holden brought in Salary Sacrifice pricing a few months back... If you talk to the Fleet people at the Dealer you can get Salary Sacrifice pricing as long as you're getting a novated lease OR get a vehicle allowance from your employer. If doing novated you can usually get the quote in this way, or the company you're novating through will source the same pricing.
If you're wanting to buy the car yourself using your vehicle allowance, the Dealer Fleet people just need a letter from your employer confirming that you qualify for a vehicle allowance - they can then give you a quote with Salary Sacrifice pricing - so you're getting the same price the fleet companies do for novated leases.

 

[Murdoch]

look at an equipment loan too if your getting an allowance.
i would speak to your accountant however to make sure you choose the right method.

I get a car allowance and put my car on an equipment loan.
With my average ks PA and writing off depreciation etc my allowance i get is effectively covering it dollar for dollar.

For example, if im getting $20k gross car allowance pa, once i add up my loan interest, fuel costs and deprciatoin it is working about the same , so at the end of the tax year im not having to pay mr ATO any extra.

 

[RACE5L]

My redline is a novated lease through Maxxia

Motherf$#@%r's lol. Through work, we cant get V8's via Maxxia. XR6T=yeah, anything with 6 or below cylinders and forced induction is fine including an R35 GTR, but no V8's.

 

[vk2him]

Through work, we cant get V8's via Maxxia.

That must be your work's policy - my work has no restrictions on the lease as it's paid 100% from my salary.

 

[ozdrexler]

There are other things to consider too, especially if your a single/divorced/seperated dad.

A novated lease will reduce your taxable income which impacts child support, family tax benefit entitlements and so forth. So consider ALL your options.
ALSO be aware, the company I work for bases its SUPERANNUATION payments on the new adjusted income, rather then the income you actually earn. e.g. earning $100k, after lease taxable might be $70k they pay compulsory super on the $70k amount. Bastards. Its perfectly legal to do it, although the ATO recommends companies dont. Big business... anything to screw the little guy over. They didnt tell me about that little thing until I had committed to the deal. Wouldnt of changed anything, but nice to know.

 

[BlakeParsons]

I don't trust all this credit and leasing, in my opinion the best way is go on and buy the car right from the dealer. For me it is better to wait, to work and put aside the required amount. That way you will purchase the product for their real price without interest rate for the loan. For me it is more profitable and you don't loose the money. I know that there are many good offers now on the market, all that concern the credit and loan. One friend recommended me this service for instance moneyexpert.com, because there you can find the best loan offers. But still, I don't wanna take the loans.

 

[Forg]

I don't trust all this credit and leasing, in my opinio the best way is go on and buy the car right from the dealer.

All else being equal, you should be better off just buying outright.
But that's not really how the world works ... leasing companies get massively better deals that as a retail customer you've got no access to, discounts on interest-rates occur, etc.

I'll throw in an example; a workmate leased a car pretty-much just as transport. He'd started saving for a place of his own to buy, had child support, and wanted to know EXACTLY what his outgoings would be monthly ... that was why he was looking at leasing. He went with a company that is a customer of ours, and we were able to see the data on his lease ... they had bought the car for very close to a 30% discount, and that's on a popular new-release model (in fact he knew someone who'd ordered exactly the same spec/model/colour as he'd ordered - this mate of mine got his car in about 2 weeks, his mate got their order bumped for another 3 months all of a sudden, and we thought that was pretty suspicious). I can't remember exactly what his monthly bill turned out to be, but when he added up all the running costs he'd have incurred if he'd bought the car outright (fuel, tyres, insurances, rego) they were about the same as he was paying - he got the use of the car itself for free.