Novated Leases - pros, cons, personal experience. | FerrariChat
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Novated Leases - pros, cons, personal experience.

Discussion in 'Australia' started by pacoll, Sep 23, 2009.

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  1. pacoll

    pacoll Karting

    Oct 4, 2007
    75
    Gold Coast, Qld
    Full Name:
    Perry Collier
    #1 pacoll, Sep 23, 2009
    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
     
  2. Arvin Grajau

    Arvin Grajau Seven Time F1 World Champ

    Jun 7, 2006
    78,325
    Wurundjeri man.
    Full Name:
    Arvin Grajau
    #2 Arvin Grajau, Sep 24, 2009
    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.
     
  3. SPEEDCORE

    SPEEDCORE Four Time F1 World Champ

    Jul 11, 2005
    46,182
    Full Name:
    Toe Knee
    #3 SPEEDCORE, Sep 24, 2009
    Last edited: Sep 24, 2009
    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.
     
  4. SPEEDCORE

    SPEEDCORE Four Time F1 World Champ

    Jul 11, 2005
    46,182
    Full Name:
    Toe Knee
    #4 SPEEDCORE, Sep 24, 2009
    :)
     
  5. goober

    goober F1 World Champ

    Nov 15, 2004
    15,895
    Adelaide & Thredbo
    Full Name:
    Buddy Miles
    #5 goober, Sep 24, 2009
    add ons as in tow truck to follow you around?
     
  6. GTRMagic

    GTRMagic Formula 3

    May 18, 2004
    1,902
    Sydney, Australia
    Full Name:
    Hey Mr Dee Jay....
    #6 GTRMagic, Sep 24, 2009
    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
     
  7. pacoll

    pacoll Karting

    Oct 4, 2007
    75
    Gold Coast, Qld
    Full Name:
    Perry Collier
    #7 pacoll, Sep 24, 2009
    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
     
  8. Arvin Grajau

    Arvin Grajau Seven Time F1 World Champ

    Jun 7, 2006
    78,325
    Wurundjeri man.
    Full Name:
    Arvin Grajau
    #8 Arvin Grajau, Sep 24, 2009
    With the current tax claims ,I see no point in owning a car over the 57k limit.
     
  9. SPEEDCORE

    SPEEDCORE Four Time F1 World Champ

    Jul 11, 2005
    46,182
    Full Name:
    Toe Knee
    #9 SPEEDCORE, Sep 24, 2009
    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
     

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