Is it too much?

[bugeyedcreepy]

This is with Fleet discount and no on-roads. The registration etc is incorporated into the 3 year lease plan.

How does one go about getting a fleet discount?

Salary Sacrifice (novated lease), a managed amount comes off your pay before you get it meaning you pay less income tax and the leasing entity generally pays for everything ex tax out of that amount. The drawback is that the taxman saw that trick and brought in FBT to ensure you get duly rodgered if you don't use it. I.e. If you do less than 25,000km/year, you cop a 21% Tax on the residual value for that year, obviously if you aren't going to do the kilometers then you'd be better off buying it yourself with the 10%GST. If you do more than 25,000km, that rate drops to between 9% and 11%. If you travel over 40,000km, that FBT rate drops to 4% residual value.

You'd have to talk to your employer to see if you can do salary packaging, they'd generally have deals done with leasing companies for this.

Edited 17/08/04 03:39 AM by bugeyedcreepy

[exar]

This is with Fleet discount and no on-roads. The registration etc is incorporated into the 3 year lease plan.

How does one go about getting a fleet discount?

Salary Sacrifice (novated lease), a managed amount comes off your pay before you get it meaning you pay less income tax and the leasing entity generally pays for everything ex tax out of that amount. The drawback is that the taxman saw that trick and brought in FBT to ensure you get duly rodgered if you don't use it. I.e. If you do less than 25,000km/year, you cop a 21% Tax on the residual value for that year, obviously if you aren't going to do the kilometers then you'd be better off buying it yourself with the 10%GST. If you do more than 25,000km, that rate drops to between 9% and 11%. If you travel over 40,000km, that FBT rate drops to 4% residual value.

You'd have to talk to your employer to see if you can do salary packaging.

Actually, even at 21% FBT it may be worthwhile, as it gets you the fleet discount, plus ALL costs (insurance, rego, maintenance, fuel) come out of pretax dollars, and, say, you are at 47c marginal rate (plus 1.5% medcare levy) - there can be huge savings. What usually makes a difference also, is if you have to finance the deal yourself, the interest rate from the lease company can be good compared to a loan from a bank (but not if you get the money at home loan lending rates).

It's worthwhile doing the sums beefore you jump into anything like this.

One gotcha is the residual value of the car at the end of the lease (for a finance lease). You need to add the 10% GST back on again, and pay the lease company that as well because it's only the part you use is GST free. For a two year lease, the residual is 55% of the original value (plus 10%).

[who carez]

Just an update - picked up the car from the dealer this morning. Will be doing some driving this weekend :D :D

I'm kinda in love with blue lights - haven't seen them before. Will be doing some night driving tonight :D :D

[Dr Z]

Blue lights still add an even bigger smile to my dial though be careful with how much fun you are having or you might see some OTHER blue lights you may not be so happy to see. :lol:

Enjoy your driving experience...can't get enough of this..

Safe and happy driving...Dr Z

[RATT]

I fail to see why people post national fleet or government pricing to the general public when most will never have that privilige. It gives people the wrong impression and makes them feel that they are being ripped off when they pay $2-3k more, which for a private buyer is probably a good price.

[tab]

I fail to see why people post national fleet or government pricing to the general public when most will never have that privilige. It gives people the wrong impression and makes them feel that they are being ripped off when they pay $2-3k more, which for a private buyer is probably a good price.

Probably because quite alot of members of this forum have their vehicles under a novated lease. Even if this doesn't apply to you it's good nonetheless to see how much you are getting ripped off by isn't it?

Trent.

[RATT]

I fail to see why people post national fleet or government pricing to the general public when most will never have that privilige. It gives people the wrong impression and makes them feel that they are being ripped off when they pay $2-3k more, which for a private buyer is probably a good price.

Probably because quite alot of members of this forum have their vehicles under a novated lease. Even if this doesn't apply to you it's good nonetheless to see how much you are getting ripped off by isn't it?

Trent.

Each to their own in that respect. I'd rather not know.

[who carez]

I've seen fleet prices before and what can I do - they are for specific group of ppl. It's good to know but - doens't bother me, but as you said each to their own.

ps - RATT, I think the dealer got my car from you guys.

[sbr79]

which ever way you guy , hiow does it matter anyway. As soon as you drive the car away from the dealer you loose more than 2-3k anyway in depreciation, and the resale on the car would be close if not the same as anyone else no matter what payment method you use.

Just my opinion

[exar]

As soon as you drive the car away from the dealer you loose more than 2-3k anyway in depreciation,

At least, when you've just saved $4k on GST, that doesn't hurt quite so much.