Novated Lease.

[drew]

well I thought I was in the 40% tax break, I earn anywhere between 140k a yr to 200k a yr.Your right about the equity thing,but with leaseplan australia your allowed to put 20% of the total price of vehicle towards as equity.I dont think any other lease company allows for that to happen(might be a bhp deal)Lux tax comes in at $57009 with bhp every cent over that you need to put in yourself to get below that figure.As I stated I put $8500 towards my FG F6,My total finance was $47857.I think for that car it is quiet cheap.But we get a huge discount and dont pay any gst up front because the company claims the gst componet.

Edited 27/08/10 12:17 AM by drew

[ronburgundy]

Definitely not a lease then if GST is claimed up front

[drew]

It is a lease mate.The company claims all the gst on the car.Im not sure how they structure it but it is to there advantage also employee's having lease cars.The only gst I pay is if I wanna purchase the vehicle outright at the end of 2yrs.I also have another lease car aswell a 2008 rav cruiser L.It finishes in dec though, the payout on it is 19k and it will have 50k klms on the clock,should get 30k + for a private sale.

Do you know why they use ecm now?We use to be able to use all pre tax dollars once but they changed it 3 yrs ago,now the smaller amount which is the fbt running costs is post tax and the payment of lease is pre tax.My F6 is $365 pretax and FBT is $115 post tax per week.

[ronburgundy]

All I am saying is based on what you're telling me, it isn't a lease. Maybe you don't have the facts quite clear but as I said my statements are based only on your info.

Unless they have changed the tax rules in the last week or so, you don't claim GST up front on a lease.

[drew]

I know you dont claim the gst up front. I DONT PAY ANY GST ON ANYTHING ADDED TO THE VEHICLE OR ON THE COST.The company claims some gst componet otherwise what benifit do they get out of it.Mate I should know this is my 6th lease car and my 3rd vehicle that I've had to put money into to get under the lux tax bracket.Il scan my agreement if I have time and show you the breakdown (obviously crossing out my name and id number)

[ronburgundy]

Mate I'm not having a go at you so relax, I'm just trying to make sure there is no misinformation in the thread.

With all due respect this might be your 6th one but I'm an accountant and I promise you I've seen more than 6, and know enough about the rules.

There are plenty of (car) tech related threads here which some people rely upon and no doubt there is information that is not entirely accurate. I just want to make sure we don't have the same thing for something I actually DO know about (cos I know feck all about cars!)

[drew]

Ok well all I know is that the company claims some sort of tax of it.That is what I said in the first place it is benifit to them aswell as to employee's otherwise why would big companies do it for.It somehow helps there tax thing or something.

I think leaseplan australia is the only novated leasing company that allows you to put equity into the vehicle also, I tried orix because their the 2 we are allow to use but they wouldn't allow no such thing.

Edited 27/08/10 04:41 AM by drew

[mattyb]

drew, I'm with bhp crinum, and am looking at doing the same thing on a 2nd hand terry turbo ghia.

From what I gathered in my talks with leaseplan, I can pay up to 20% on the vehicle on sign-up, and due to it being a lease vehicle, I don't pay any GST on it. At the end of the term, I can sell the car on, and pay out the residual, any profit I pocket, or, I can hand it back, and sign on for a new lease.

One thing I did notice is I was given standard customer service, when I was talking with their consultant, but when she found out I was a bhp employee, she said that I get a better deal as I'm sure she said 90% of BHP's leases go through them. I do know she said that the GST on the vehicle was removed from the purchase price, and that I should take that into consideration when getting prices on a vehicle, as it will bring the price down.

[mike741]

hmmm

[mattyb]

Well, thought I'd add an update.

Vehicle cost, was approx $54k

Minus the GST made it about $49k

Include Fuel, Tyres, Rego, Insurance, Maintenance, New 4 Old Replacment, Hire car for 2 weeks of every year, blah blah blah...

Total cost out of pocket is $320 a week. (not bad considering the 2005 BF XR6T with 95,000kms was $170 a week, plus $80 a week fuel, then other costs on top)

The balloon payment is for $17k in 4 years, and the car will have 100,000km on it. I can give the car back and just start a new lease, I can buy it our for $17k, or I can sell it and pay the lease company $17k and pocket the rest.

I did a bit of searching around on carsales, and carpoint, and found that 4 year old Turbo Territory Ghia's with a lot more than 100,000 were still going for up around the $30-$35k mark.