Vehicle Leasing?

[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

<{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???

<{POST_SNAPBACK}>

A HP is essentially a personal loan. To payout early just ask for a payout figure. Its your car (well sort of), so you can do this at any time (make sure you ask the question)

Be carefull with getting out early, because you need to balance the timing with the payout figure, with what you can get for the car. The lower the residual at the end of the term the better. Its very tempting to go 60 months, 40% residual and have a low monthly payment, but will the car be worth $16k in 5 years ? (who knows), will it be worth $30k in 3 years??

cheers

[markxr6t]

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}>

blackwrx

Doing 25000km per year alone will reduce this amount by $300pm of FBT. Doing this makes your total payments similar to mine. You should be able to control all ins and outs in a novated lease - the whole point is that they cost your employer nothing.

I only ever go for 2 year novated leases @55% residual (or the lowest someone will give me) which then enables me to refinance at the residual amount after 2 years which reduces lease payments and FBT significantly. Or I change cars!

Keep in mind that your employer will probably reimburse your input tax credits and that if you do 25000kms your monthly cost will be $1700 of pre - tax dollars which is $900 pm of "real money" (if you're in the top tax bracket) for all running costs and lease payments.

Take away the profit you make after paying off your residual and selling the car and your net cost of ownership including all running costs is closer to $700pm (after tax dollars)

So your quote looks fair. I'd look at a shorter lease term, though.

Hope this makes sense

Mark

[vuster]

blackwrx

Doing 25000km per year alone will reduce this amount by $300pm of FBT. Doing this makes your total payments similar to mine. You should be able to control all ins and outs in a novated lease - the whole point is that they cost your employer nothing.

I only ever go for 2 year novated leases @55% residual (or the lowest someone will give me) which then enables me to refinance at the residual amount after 2 years which reduces lease payments and FBT significantly. Or I change cars!

Keep in mind that your employer will probably reimburse your input tax credits and that if you do 25000kms your monthly cost will be $1700 of pre - tax dollars which is $900 pm of "real money" (if you're in the top tax bracket) for all running costs and lease payments.

Take away the profit you make after paying off your residual and selling the car and your net cost of ownership including all running costs is closer to $700pm (after tax dollars)

So your quote looks fair. I'd look at a shorter lease term, though.

Hope this makes sense

Mark

<{POST_SNAPBACK}>

Are you sure the fringe benefits tax is calculated on the balance of the car after 2 years? I've taken over a lease on a company car previously and they charged me fringe benefits tax on the original purchase price of that car.

20,000 a year is a bit too much to pay for a 38K car. If you are going to go on a novated lease then you should really do at least 25,000km/year before you can see much of the benefits. The stutatory fringe benefits tax rates are applied to cars on novated leases and in your case you will be paying 20% on the purchase price. That's about 8000K fbt per year. If you do 25,000km then you only have to pay 11% fbt which is about 4.5K per year. Therefore you can reduce your cost to about 16K per year.

These are the quotes I have been given in the past based on 25000km/year:

200sx 45000$-17,000 residual 30%

Typhoon 59000$-22000 residual 50%

Clubby 54000$-22000 residual 50%

Clubby cost the same as the typhoon even though it was cheaper but because it was a v8 the maintenance was more which made up for the finance/fbt savings.

If you don't think you can do more than 25000km/year and that you will use the car for mainly business use, then I guess going purchase hire will be more cost effective.

[Honest Gaza]

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.

This is also open to debate....depending on what the ulitmate goal is. If you intend to keep the vehicle after paying the residual at the end of the lease....who wants a car that has travelled 160,000k's after 4 years. In addition to this, resale value will be on the low side should you chose to sell it at a later time.

[markxr6t]

Are you sure the fringe benefits tax is calculated on the balance of the car after 2 years? I've taken over a lease on a company car previously and they charged me fringe benefits tax on the original purchase price of that car.

My experience (maybe I've been lucky?) is that I only pay FBT on the lease amount. So when my lease is up in 2 years I can pay the residual of $18000 or refinance the $18000 for another 2 years and that becomes my amount for FBT.

Because I paid for my car at auction and then leased it, CBFC even let me choose my lease amount (and hence FBT)

Mark

[tab]

Or you could just get a utility and forget about FBT all together!

Trent.

[Guest l33t_kid]

Hey guys,

Me and my mum need to get a car for my dad. He came a few weeks ago out of angioplasty. He usually takes public transport to get to work. We thought of Salary Sacrifice as a method. My dad earns about 70k. His "salary packaging/fleet organisers" are http://www.msa-online.com.au. Now what I don't get is, how the f*** can you guys afford it? When I even try an XR6T, I'll get 1200+ on just the car alone. So what I want to know is.

Do these people allow this "Hire Purchase" thing?

How can we get the most out of it?

See, I was looking, and it seems as though that it is much more expensiver than say buying a car on a loan instead. ie a Falcon XT doing 25-30k km is $15-20k a year is more than a Fairmont Ghia second hand for $30k.

Please help

Thanks

l33t_kid

[yeec]

... Now what I don't get is, how the f*** can you guys afford it? When I even try an XR6T, I'll get 1200+ on just the car alone. So what I want to know is.

Do these people allow this "Hire Purchase" thing?

How can we get the most out of it?

See, I was looking, and it seems as though that it is much more expensiver than say buying a car on a loan instead. ie a Falcon XT doing 25-30k km is $15-20k a year is more than a Fairmont Ghia second hand for $30k.

<{POST_SNAPBACK}>

When you salary sacrifice, the lease costs are taken from your gross pay and not your nett pay. $20k per year gross to lease a XR6T sedan is pretty good when it covers rego, insurance, servicing and petrol.

[Honest Gaza]

Now what I don't get is, how the f*** can you guys afford it? When I even try an XR6T, I'll get 1200+ on just the car alone. So what I want to know is.

Do these people allow this "Hire Purchase" thing?

How can we get the most out of it?

Please help

Thanks

l33t_kid

In my case, my employer pays a "Vehicle Allowance" which covers most of the cost. Anything above the allowance value is what comes out of my "pre-tax" pay. I assume that others may be in a similar situation. Therefore, it is not the full cost of the repayments that becomes a "salary sacrifice".

[vuster]

Vehicle allowance is treated the same way as gross pay. If you decide not to use the vehicle allowance or decide to use a portion then the amount not used is treated as gross pay.