Vehicle Novation Lease

[markxr6t]

Mark that sounds really good. So I take it you did it over 3 years? Going by your above figures the lease cost you about $200/week over 3 years, sound about right?

By all running costs, do you mean service, fuel and insurance? Or was it service and insurance only?

Cheers

It was a 2 year lease with a 55% residual. I prefer 2 year leases as I get bored of cars after 2 years and I think its a good balance between building equity, reasonable repayments and a relatively low kms car to sell after paying out the residual. Lease repayments were under $800 per month and service ($500 pa), tyres ($600pa), fuel ($3500 pa) and insurance ($620pa) are included in my calculation. If you use the "Employee Contribution Method" of contributing the taxable FBT amount (about $3600pa) towars running costs in after tax dollars, this offsets your FBT liabilty.

If you want me to go through a scenario for your particular situation, pm me and I'll do the figures for you. This seminar you're attending and most "salary packaging calculators" won't take into account the advantages of your residual being less than what the car is worth and to me, this is the main benefit of novated leasing. Of course if you spend $55k on a fully optioned brand new XR6T, you're going to be sailing close to the wind come residual time. If getting good value is important and you want fullly optioned and brand new, buy a Subaru!

that's why I've put off my BF for now until there's more April 06 and later build-date examples around the $30k mark....

[XtRmn8]

Yes ofcourse 2 years, my bad.

Mark look at what I found last night while fishing around. Its a bit early for me but you might be interested. Have not called the guy but it could be a misprint, worth a shot anyway.

CLICK HERE

[Dagabond]

Goran

Did you go to the seminar?

Got any details......

[XtRmn8]

Yea went to the seminar this morning and it was presented by the easifleet GM.

At the moment it all sounds a bit too good to be true so I will have to nutt-out some of the finer details and get some more figures etc.

Basically my employer has been given (or placed in the same bracket) of buying power as local/state/federal govenment combined. This means that we can get cars at prices what the gov pays for them. For example a VE Omega is about $39k drive away for the averaga Joe and we can get the same car for $26k. Reason is because Ford/Holden/Toyota etc are not interested in profit as gov makes up about 45% of total anual new car sales, hence the manufacturer wants market share and will sell cars to this buying group at pretty much cost price. Plus there is no dealer deliver, GST or stamp duty (which in WA is pretty high).

All other Novated lease things apply such as FBT and the kms brackets etc. But where it gets interesting is by the means of a new scheme called ECM (Employee Contribution Mechanism?), where you can contribute part of the lease payment post tax and ofset the FBT and hence pay no FBT. For example if I do 25k km per year and I have to pay 11% FBT on the lease packedge on say 10k pa. I can offset that $1100 FBT by paying that with post tax dollars and the other ~$8900 pre tax.

I am waiting to get a quote on a XR6T sedan and ute to see how much I can get one through easifleet adn the saving compared to RRP and drive away price.

[DORKO]

Hi Mate,

I am on a lease with my T ute. Got it in Dec. You will save a bucket load on these lease. Remember you can offset the FBT by getting your car detail every month. Cost me $70 a month to get it detail and offsets my FBT by $600 a year... Its still something for nothing.

Good luck with the lease... But word of advice Easifleet are a real sh*t at what they do! ALWAYS double your figures.

Dorko

[Blonk]

Get an unmaintained novated lease then you can do what you wanbt with the car and still claim it

[Dagabond]

Yea went to the seminar this morning and it was presented by the easifleet GM.

Aaah so it's not a "Prestige Novated Lease" per say but just a standard noveated lease.....got me all excited for nothing....

[DORKO]

Get an unmaintained novated lease then you can do what you wanbt with the car and still claim it

that's not completely true mate. You can only claim things such as a service, detailing, insurance, wheels & Tyres, Rego etc.... Basically whats need to run the car on the road at its oncosts. I would seriously check it out further. I work in finance and I have checked it over with TAX accountants ,Fleet Solutions and the ATO. I wish I could claim mods to the ute and get a tax deduction but its completely illegal. When you are on a unmaintained lease you still need to submit your receipts at the need of the FBT year to the Tax department. They are anal as and won't approve it under the novated lease scheme. But as per any ruling from the ATO theres always a way round it. EG. You can claim a suspension upgrade if you can relate it to your specific job, like a bricky.

Dorko

[Orrie]

Hi Mate,

I am on a lease with my T ute. Got it in Dec. You will save a bucket load on these lease. Remember you can offset the FBT by getting your car detail every month. Cost me $70 a month to get it detail and offsets my FBT by $600 a year... Its still something for nothing.

Good luck with the lease... But word of advice Easifleet are a real sh*t at what they do! ALWAYS double your figures.

Dorko

Dorko,

can you expand on this in alittle more detail please. Not clear to me how you offset FBT with car detailing but it does sound interesting.

thanks

Orrie

[XtRmn8]

Aaah so it's not a "Prestige Novated Lease" per say but just a standard noveated lease.....got me all excited for nothing....

According to what we were handed it is "Prestige Novated Lease", not sure what or if there is any difference.

I got some more prices last week. For example a base BF XT would cost about 24k, an XR6 4 speed auto is about 27k and the 6 speed is about 29k.

I am getting a salary impact statement done to see how broke I would be if I go ahead with this haha. Basically all running cost would be included in the lease, which would cover insurance, service, tyres, rego, fuel etc. Fuel is just a figure they put in the lease and if I go over I have to pay more or if I go under I get money back. But there is a quarterly report where they look at details and adjust lease so that you do not get a huge bill at end of year, plus its all done by out HR dept.

See what happens when they get back to me with figures.

Just a question for those of you who lease cars. Is there anything in the contracts to say that you can not modify the car in any way? In terms of engine I ma just get a flash tuner box down the track. But I would like to get my own tint done and lower the car after delivery. Seeing that I would own he car and it would be in my name I do not see how this could be a problem.