Novated Lease.

[tab]

They can do whatever they like within the boundary of the law.

Forgive me if I'm wrong as I actually haven't read every line of the legislation that you're referring to, but I doubt it would have a clause "you must agree to finance any car that you are asked to"

Last time I wasn’t under the influence of prohibited substances I thought there was a difference between may and must.

[Blonk]

that's why we have the opportunity to shop around, unless you have a dictated salary packaging company then they must adhere to the law. I.E. Defence Personnel package with "Smart Salary" they dont get a choice, This company will tell you they cant do this and they cant do that, but if you speak to a manager you find out they can do lots of things, policy is reject first instance, similar to insurance companies.

[markxr6t]

I agree - that's why I set up all my own novated leases. Of course, I must go through my employer's package provider to make payments, but I pay them, I am their client, so I tell them what I want. Similarly, I shop around for finance, get fleet dicount quotes off dealers direct, tell the package provider what and when to pay and just get my employer to sign the paperwork.

As stated, each party (employer / finance company / package provider / ATO) only cares that you comply with the rules and where applicable that they get paid.

Most financiers will lease any car that is not more than 7 years old at the end of its lease. So you can lease a 5yo car for 2 years. This is a great way to minimise FBT and depreciation! Macquarie Leasing allowed a work colleague a 3 year lease on a 1976 Triumph TR6. Again, all they care about is that the car is worth the residual amount or more at the end of the lease.

Unless your employer is a total control freak, there is a lot more flexibility in novated leasing than most people realise....

[PepeLePew]

Adding to the 7 year thing some insist the car will not have 200000+ end of lease, hit that one too!

[Blonk]

Adding to the 7 year thing some insist the car will not have 200000+ end of lease, hit that one too!

They may insist but they cannot govern, your rights is your right and as much as they insist they cannot enforce....!!!!!!!

Like markxr6t, they are our customer, dont let them lead you or bully you.. You are the buyer....

[loopism]

I agree - that's why I set up all my own novated leases. Of course, I must go through my employer's package provider to make payments, but I pay them, I am their client, so I tell them what I want. Similarly, I shop around for finance, get fleet dicount quotes off dealers direct, tell the package provider what and when to pay and just get my employer to sign the paperwork.

As stated, each party (employer / finance company / package provider / ATO) only cares that you comply with the rules and where applicable that they get paid.

Most financiers will lease any car that is not more than 7 years old at the end of its lease. So you can lease a 5yo car for 2 years. This is a great way to minimise FBT and depreciation! Macquarie Leasing allowed a work colleague a 3 year lease on a 1976 Triumph TR6. Again, all they care about is that the car is worth the residual amount or more at the end of the lease.

Unless your employer is a total control freak, there is a lot more flexibility in novated leasing than most people realise....

Might have to talk to you about this in 2 years time .....

[pottsy44]

hey I was thinking about doing a novated lease on a XR6T. I read some of the topics already on this forum and checked out some novated leasing companies website and im still unsure about some things.

-I earn $34,500 gross p.a

-I work for a local council (I assume I can do a novated lease on any vehicle?)

-my dad works for a ford dealership and I should be able to get a car for less than the RRP, will this make a difference to the lease price and the residual value at the end?

-I travel approx 20,000-22,000k's p.a would I be better of using the car more to get 25,000k's p.a?

-would I be able to get away with not paying FBT by buying a ute over a sedan? my job title is "building surveyor" and we have to travel to construction sites, although I dont use my own vehicle.

-I also own a second mode of transport (motorcycle), so I can say that the vehicle is only used for work purposes and the motorcycle is used for personal use. will this work?

-can I pay an upfront payment on a novated lease? eg. the car is to be leased at $40,000, and I pay $10,000 upfront. is my lease now based on a $30,000 figure?

-I also thought this would be a good idea as a 20 y.o insurance is like $3000 p.a but on a novated lease im under the impression you can get insurance for approx $1000 p.a?

I also need to know if this would be worth it? considering all things above it may differ.

thanks all, I had more to add but cant remember atm

[Chooka]

I don't think you earn enough to make it worth your while to be honest....

Brett

[senna_T]

you really should be talking to the leasing companies, they will know what they allow better than us.

Also, most leasing companies get what we call National Fleet Pricing, so they would be able to get a similar if not better price than your dad.

[SCRIBR]

I don't think you earn enough to make it worth your while to be honest....

Brett

you can't avoid the FBT but if you maker personal contributions, again the Lease company can explain all this, you can cancel it out.

Also, I went with a large lease company and got my ute when I was an apprentice and I had to make a "personal contribution" (I.e. pay a few K to reduce the amount leased) as they don't allow you to spend 80% of your annual wage (ah good old apprentice wage) on a car (35k - 20% = 28k on a car). no matter what your circumstances at home.