Xr6t Payments

[3rdTurbo]

So how come you leased the car instead of using your equity to buy outright?

Mega Tax benefit. Using a novated lease you pay FBT in lieu of Income Tax. The most commmon method used for FBT is calculated based on annualised kilometres, not the actual cost of leasing/running the car.

For those on or near the top tax bracket and can do over 25,000 kms pa (or at least 15,000 kms pa) or >80% business use ------> the tax (FBT) is in most cases is substantially less than if you had purchased/maintained your vehicle using after tax income (I.e. take home pay packet).

VG is playing it very smart. If 2nd hand values holdup, in 3 years time when VG offloads his car, and achieves a higher sale price than the lease residual, he will pocket a tidy profit all tax free. More surplus equity!

The secret is to get the lowest residual within ATO guidelines over a 3 yr period.

I'm 28 yo ---> have 60% equity in my house worth about $700k (the housing boom as resulted in this phenominal growth). I have had no assistance from family etc) and have am very lucky to have a T in my driveway too.

I made many minor sacrifices in my early 20's, but now that I'm much more financially secure, I do indulge a bit more and live for the moment too. And I'm being pressured into marriage!

I think it's all about balance not extremes.

VG: Make sure that you factor in the 10% GST into your lease residual.

[KrasH]

I bought my first car at the age of 25. It was a 1998 Pulsar SSS and it cost me $28,450. I basically put $16,000 up front and the rest was over a 4 year loan. The repayments were only about $170 or so per fortnight, if I remember correctly.

With the T, I put about $18,000 saved money up front. My pulsar SSS was valued at $11,000 for a trade in, but my dad said it was a rip off, so he bought it off me for my brother, who is paying him back slowly. The $30,000 left over was loaned to me by my dad aswell, but I plan to pay him back within about 12 or so months. Since I work with my dad, bricklaying, there is no drama in paying him back at the moment. Fortunatly for me I don't have any other major "bills" to pay each month.