Novated Leases - pros, cons, personal experience.

Sorry if this has been discussed to death before, but I just got "promoted" with a $40K+ p.a. pre-tax pay increase (yippee!), so should consider tax implications. Not for F car, but for family bus...

Cheers
Pez

 

do the somes,very expensive way to buy a car.
I did the sums on a Rangie few years ago far better of with a normal hp/lease.
Far to many add ons.

 

From a few friends that have had novated leases in the past. Besides the tax bracket you are in, it seems to only work out if plan on doing at least 30000km a year. The more km you do the more you save.

Here is a calculator that shows how much you can save a year.

http://www.privatefleet.com.au/finance/novated-lease/

I had a friend that recently finished his 24mth lease 8mths early and it ended up costing him only $250/mth(including fuel, insurance, services, finance etc) for a $30k~ car.

Of course that figure is worked out after he sold the car. He was getting deducted from his salary around $900~/mth during the lease.

 

add ons as in tow truck to follow you around?

 

They are a hassle... to set up.. can add time to the purchase process because the levels of customer service from many leaves a lot to be desired.

Why doesnt Aussie Home Loans play in this space, I am sure they could convert quite a few leases across with the crap that goes on.

As Blackjag suggests, they are expensive, especially on low km usage

 

Thanks for all the feedback - as usual, do the sums/research.

May just be better off buying straight out...will get accountant on to it.

Cheers
Pez

 

With the current tax claims ,I see no point in owning a car over the 57k limit.

 

Yeah there are a few con's with them. All my friends that have used these leases in the past used the car for work so its easy to rack up the 25k+ a year.

I have a friend works for this company, they can give you a heads up for free over the fone.
http://www.autopia.com.au/employees.html