Novated Lease.

[rockafellqeinstien]

talk to your accountant.

I ended up going chattel mortgage. for me it work out the same as a lease over 5 years except I owned the car at the end of it.

[ronburgundy]

Actually under a chattel mortgage I think title passes up front

[Dyno Junkie]

Actually under a chattel mortgage I think title passes up front

Correct, which also means that if you are able to claim depreciation you are able to do this as well.

[ronburgundy]

And GST too (yes, I'm the resident Forum Accountant!)

Although you can claim depreciation under a CHP too, but the GST implications differ - a whole other discussion

Goes with the (G-Spec) territory I think...

Edited 18/08/10 02:15 AM by ronburgundy

[Guest XR09]

Yes I have chattel. Just watch out as a few of the banks now want bricks and motar behind a chattel. Suncorp was not even doing them last year. Don't put your house on a car.

[power_slide]

@ corzza I was thinking 3 years as I do 50 per

@ ricki where will I put my tools? Want a new blown v8 when it's out

@ Ron what's a chattel mortgage?

[smicky]

PS - mate, first and formost talk to your accountant... Depending on your u run things, Lease may or may not be right for you..

CHP -

Lease -

Ch Morg -

Simply Loan -

All in one Lease...

All in one lease with buy back/sell off option..

Payout Ballon, no Ballon...

There is so many options and so many different rules for calculating..

The RSpec is on a CHP with a payout (cant remember)...

My GT was the same...

But my accountant does the paperwork - I just pay the silly counters office to make sure the tax man doesnt come knocking... Before I signed I made sure he gave the OK on whatever options we had..

The bean counter will always point you in the right direction to minimise tax, easy payments etc per your need and ability (providing they have half a brain)...

[ronburgundy]

to echo what smicky said, and not just because I have a vested interest, talk to an accountant! Not doing so would be like not knowing anything about cars but then doing your own mods and not consulting a mechanic. Except with this you're talking 50k!

[drew]

after reading some replies I think most of you people are misled about novated leasing.The real benifit of leasing is if you are in the 40% tax bracket,the savings are from the discount that you get and the gst on vehicle which you pay at the end.I work in mines and I fall into this department.I have 2 lease cars 1 at 2008 rav 4 cruiser L and 2 a brand new FG F6 sedan.The benifit of lease is to reduce your tax.Im with leaseplan australia which are pretty good to deal with because you are allowed to put 20% equity into the vehicle to reduce the monthly repayment,Example is on my F6 I pay $1660 pretax pm and $457 pm post tax for the fbt side of things.The residual after 2 yrs is $25550 and it will have 50000klms on the clock.I also added some equity to the vehicle of $8500 to reduce the payments because I also have the rav4.The payments per month include all servicing,tyres,insurance,registration and fuel.

If you look after your vehicle you can surely make money on them depending on what vehicle you purchase I guess.My previous 4 cars have been all hsv's the last being the ve r8 which I made 13k profit from it.

If anyone wants to know a bit more feel free to ask.

Edited 26/08/10 08:52 AM by drew

[ronburgundy]

2 things mate:

1. We haven't had a 40% tax bracket for 14 months now

2. I'm pretty sure you can't have equity in a lease; this is because under a lease you don't actually own the car. Usually when you get a car under a lease and have paid a deposit to the dealer, that amount gets refunded to you at handover. Be surprised if yours wasn't a CHP or something, which is a different beast altogether. Also if you paid more than $57k your car is a luxury car and thus for tax purposes won't be treated as a lease

Also I would be VERY surprised if you were actually coming out ahead on such an expensive vehicle, where the running costs relative to the cost of the car aren't that high (trust me I have a G6ET, which I fortunately paid less than $43k for BRAND NEW, and I do over 25,000 klms in a year - even I am only marginally ahead and I am in the 37% bracket.)