Different Leases?

[JB]

what does that $740 per month give you????

A plain white T :lol:

Yeah believe it or not the Orange T was $700 PM! :lol: No residual as it becomes a gift! :lol:

[Blown BA]

what does that $740 per month give you????

A plain white T :lol:

Yeah believe it or not the Orange T was $700 PM! :lol: No residual as it becomes a gift! :lol:

Yes but its Unique and the ....WHITE isn't :lol:

[bcl]

With a lease you are basically renting the car. So you finance the total cost of the car including GST and then you have GST again on each lease payment (because it's a service). With a HP you are paying off the car over a period of time, so you are only hit with GST once.

With HP you can claim depreciation on the car.

With a lease you claim the cost of each lease payment as a tax deduction, not the depreciation.

I used to lease before GST, now I HP. In the long run it doesn't seem to make a huge amount of difference financially or regarding insurance or early pay-out etc.

Not true, at least in my case!

You don't double pay the GST

I.e on both the car purchase and the lease payments.

My lease repayments are based on an amount that equals the purchase price LESS the GST.

The lease payments then have the GST added, and I claim the GST payments each month through my business. There will be a GST on the residual.

The finance company, who have purchased the car, which included the GST, will themselves make use of the GST.

I was initially concerned about GST, but was happy when it was fully explained to me.

Brian

[curious]

I novated lease, 5 years, 187 a week. I get fuel card, tyres, rego insurance the lot all included. I pay no GST on the purchase price so picked it up for around 40,000

[Guest colinbond]

Just wonder is maintenance, tyres, fuel, insurance etc included in your lease pakage. Also do you have a Novated Lease?

I work for a Lease company. The commercial Hire Purchase have some merits but don't include maintenace etc on them.

The purchase price will have the first impact on what sort of maonthly rental you will be charged. If they have an agreement with a dealer or the manufacturer they can get what is called National Fleet Pricing which is the absoult best you can get but not all Fleet companies have it (Suprisingly).

Another thing is monthly rentals can very greatly from lease company to lease company depending on what interest rate they are offering, what RV (Residule Value) they are saying the car will be worth at leae end and even admin fees can be quite step with some fleet companies. In same cases if you take maintenace, tyres 7 fuel off the lease you can save aroung $120 per month

I suppose just look at the quotes and ask if they have natinoal fleet pricing etc. And ask for options like fully maintained, non maintained etc

[Guest colinbond]

I novated lease, 5 years, 187 a week. I get fuel card, tyres, rego insurance the lot all included. I pay no GST on the purchase price so picked it up for around 40,000

Maintenance not included?

[curious]

I novated lease, 5 years, 187 a week. I get fuel card, tyres, rego insurance the lot all included. I pay no GST on the purchase price so picked it up for around 40,000

Maintenance not included?

yep missed that, scheduled servicing included basically I pay no more any more even car washes are covered, it is paid pre tax but I also get the benefits of the lease companies bulk buying and discount packages.

[Guest colinbond]

Hmmm 5 year lease that would have to be Orix wouldn't it

[curious]

60 months, through Statewide Salary Packaging which is managed through PKF

[Mondie]

Just a few thoughts.....

Hire Purchase is basically a loan that is secured by the Finance Co taking an interest in the vehicle, just as bank holds the title on your house as security against your morgtage. Because HP has an interest in the car then some form of security is held over the loan so the interest rate is less than what it would be if you took out a personal loan.

A novated less gives a person who has no legitimate business usage on their car tax breaks. If you use your car a lot for work and so have a lot of business deductions then IMO HP is superior for the reasons above. Cheaper, more flexible, chnage cars whenever you want, nothing to arrnage through your employer etc.

Even better than HP is to take out a seperate loan using equity in your house which will then e at home loan rates. Take it over 30 years, work out what you have to pay over the period you want to keep the car taking into account what the car will be worth come trade in time and you now have HP setup but at home loan rates. because the loan balance wont efflux much over the first 7-8 years of its life you may be able to use the same loan to buy several cars before the amount needs to be increased further.