Vehicle Leasing?

[DarkXR6T]

If SMB worked out the agreement, have a look at what is included in the monthly figure.

The usual breakdown will include, the lease repayment, the FBT, maintenance, insurance and registration. You need to separate the FBT and Lease part of the payment to get a true indication of what the car itself is actually costing you. The benefit of the lease is that petrol, tyres,insurance and other costs that everyone else has to pay post tax is pre tax, and GST free.

You need to look at the picture over the whole span of the lease to see if it is worthwhile. The SMB web site has a simple calculator which shows the savings per year of leased vs loan.

[Turbofalke]

I was also ooking at doing 25000kms a year, I noticed that the insurance was a little high but did not realise that after warranty ran out that this would effect the payments.

Thanks

<{POST_SNAPBACK}>

Talk to your accountant. Leasing and HP's both have advantages. This right way to go totally depends on how you use the vehicle and your financial situation/security.

I know this doesn't really answer you question, but is the right path to go down. Its also well worth getting a few quotes for comparison, especially in different finance options.

Personally I recon that lease plans are not cost effective and are too inflexible. Every time I change over a car, I always do the math and find that a hire purchase comes out on top. Particularly if you going to enter into a 60 month lease to keep commitments low knowing that you'll change over cars in 3 to 4 years.

Good luck

[F6 UTE]

My Tornado will be HP, off a car allowance..

Mine has roughly 40% residual after 3 yrs, leaves me with payments of near on $1100 month, but I don't have to pay for fuel etc.

k's for me aren't a problem.

[BLK6T]

Just a general question if you were to get a Hire Purchase can you exit prior to the end of the contract, eg. If you got a 60month hire purchase and at the 36th month you wanted to get rid of the car can you do this???? If so are there fees????

[F6 UTE]

I can, without fees, but u have to make sure u pay extra over what the cars worth, but also have to watch the depreciation. If I get more than what it's worth on paper, then I pay tax on it..

[exar]

I have this option available through work but it looks really expensive to me and I here a few people on here lease cars.

The deal I was offered for an XR6T UTE with:

Leather trim / hard cover

rear spoiler

Window tint

Paint/ fabric/ vinyl guard

rev park sensor

total price:$38 234.56

plus servicing, insurance tyres etc.

total payments pre tax: $2028.40

residual payment: $11,384.55

over 60 months.

sounds pretty expensive doesnt it?

<{POST_SNAPBACK}>

Mine was $38169

pretax rental $1521

residual $22k+GST

24 months

does your 'etc' include fuel and rego as well? (mine does)

[bdennis]

Guys,

I have leased for the last 4 years (2 cars) and in the past I have been doing 40,000K+ each year. All in all a lease (through SMB) is line ball and if anything abit costly if only doing 25,000K and is a benifit if more that 40,000K (There are different FBT tax brackets for 15,000K to 24,999K and then from 25,000K to 39,999K then another bracket from 40,000+) All in all the lease is worth it for 40,000+, boarderline if less and definately not worth it for less than 25,000K. This is the primary reason I am selling my car and getting out of the lease. I am now doing less than 25,000K and it it just not worth it. On the flip side, I have found SMB to be one of the best to deal with re leaseing and there are no early termination costs with them...

[Turbofalke]

I can, without fees, but u have to make sure u pay extra over what the cars worth, but also have to watch the depreciation. If I get more than what it's worth on paper, then I pay tax on it..

<{POST_SNAPBACK}>

I think generally there are no fees with exiting a HP early, I've had 3 and none of them did.

if you exit a HP mid way through then the payout figure is adjusted accordingly, normally sombody would sell the car when they do this, if you sell the car for more than they payout figure then you won't be in the red. This is also why it's important not to have too high a residual.

If you make a profit on the vehicle, then tax does need to be paid but only on the proportion of the profit which can be attriibuted to buisness usage. (I.e. if you claim 75% buisness usage on your car, then it would be discounted by 1/4 prior to applying tax) Or is it vice versa ? it's very simple really

[aaronmihe]

bdennis makes good points about SMB. I've not had a problem with them except att eh quoting stage.... I do less than 20Kkm a year and leasing still works for me, so remember to investigate your individual options thoroughly.

ie Leasing the XR6T for under 20Kkm /yr works for me, but leasing a ClioSport didn't work witht eh same equation.

Overall leasing companies know their sh!t and just seeing their cost caculations change at end of warranty etc can give you an idea about potentials traps cost-wise when you're payign for the car HP...

A.

[BLK6T]

I can, without fees, but u have to make sure u pay extra over what the cars worth, but also have to watch the depreciation. If I get more than what it's worth on paper, then I pay tax on it..

<{POST_SNAPBACK}>

I think generally there are no fees with exiting a HP early, I've had 3 and none of them did.

if you exit a HP mid way through then the payout figure is adjusted accordingly, normally sombody would sell the car when they do this, if you sell the car for more than they payout figure then you won't be in the red. This is also why it's important not to have too high a residual.

If you make a profit on the vehicle, then tax does need to be paid but only on the proportion of the profit which can be attriibuted to buisness usage. (I.e. if you claim 75% buisness usage on your car, then it would be discounted by 1/4 prior to applying tax) Or is it vice versa ? it's very simple really

<{POST_SNAPBACK}>

Im understanding now... I am looking at upgrading to a mk2 soon and am considering a HP. But was weary about exiting early, but if you can easily then cheering. So if I was to get a HP for a Mk2 T ute for $40000 over say 60 months and wanted out at 36 or 48 months I just inform the credit company and they give me a payout figure, does this sound right... Then do they give me the rights to sell the vehicle???