|
Welcome to the Australian Ford Forums forum. You are currently viewing our boards as a guest which gives you limited access to view most discussions and inserts advertising. By joining our free community you will have access to post topics, communicate privately with other members, respond to polls, upload content and access many other special features without post based advertising banners. Registration is simple and absolutely free so please, join our community today! If you have any problems with the registration process or your account login, please contact us. Please Note: All new registrations go through a manual approval queue to keep spammers out. This is checked twice each day so there will be a delay before your registration is activated. |
|
The Pub For General Automotive Related Talk |
|
Thread Tools | Display Modes |
28-05-2010, 08:43 AM | #1 | |||
Cane Farmer
Join Date: Jun 2006
Location: Tom Price, WA
Posts: 4,056
|
About a novated lease.
So I have the opportunity through work to purchase a new vehicle... It's a lease arrangement where the car is in my name and the money for the car payment, regos, insurance, fuel (I get a fuel card) is deducted from my salary before I see my pay... Seems like a pretty good system...and I know my job is secure and I'm in for the long haul here. So, anyone done this that can list the pros and cons of the system? I'd probably be looking at either an FG XR8 or XR6T....
__________________
1994 ED XR6T - Cobalt Blue. 2009 FG XR6 - Black. Quote:
|
|||
28-05-2010, 08:47 AM | #2 | ||
FF.Com.Au Hardcore
Join Date: Oct 2006
Posts: 2,228
|
make sure you do at least 25,000kms a year, otherwise benefits might not be worth it, the FBT will be too high
__________________
12.33@112mph (stock) 11.00@125mph 98 (387rwkw) (CMS) 10.19@139mph (450rwkw) (Nizpro)(SOLD) 10.25@138mph FG XR6T (new toy) (Nizpro) |
||
28-05-2010, 08:53 AM | #3 | |||
Chasing a FORD project!
Join Date: Jul 2008
Location: adelaide
Posts: 5,114
|
Do you get the option to trade after a few years?
As above, make sure it's worth doing in relation to driving, you don't want to be doing 10,000klms a year with a novated lease vehicle.
__________________
Quote:
1996 BMW 740iL V8. TV, phone, leather, sunroof, satnav, all as standard. Now with 19" TSW Brooklands, 2 1/2" stainless steel exhaust, plus more coming soon. |
|||
28-05-2010, 09:02 AM | #4 | |||
FF.Com.Au Hardcore
Join Date: Dec 2004
Posts: 12,077
|
Quote:
|
|||
28-05-2010, 09:11 AM | #5 | ||
FF.Com.Au Hardcore
Join Date: Jul 2008
Location: Parkdale, Vic
Posts: 1,016
|
Novating is not worth it if you already have a good car that's worth something, isn't too old and you just want to update to something more shiny. If you do go ahead, it is of far greater value to choose a car that's actually worth something at the end (greater than your balloon payment). If you buy a Ford this won't be the case. The real value in Novating is when you trade the vehicle at the end for more than you owe on it.
If you don't have a good car, it's a great opportunity to get one at a slight advantage over paying post tax dollars, but the gain is not brilliant depending on your tax bracket. You most likely will have to make a contribution other than just running costs - this is the up front method of paying FBT. As BFXRScott said - you need to do more than 25,000k's to make it worth it, otherwise all you do is shift from (assumed) $0.33 tax in the dollar to $0.20, and this gain is in running costs and lease payments only. I'm in an "associate lease" at the moment which is slightly different, but fundamentally the same concept. The gain is only $30 per week post tax, which is about one tank of LPG. You will still be outlaying $17K- $20K pre tax. Is it worth it? You need to do your sums. Get the prospective fleet company to send you the calculator they will no doubt have, or get on line to FleetPlus, who have one on their website. Good luck with it.
__________________
"You can't fight stupid people - there's just too many of them" |
||
28-05-2010, 09:22 AM | #6 | ||
XY Driv3r
Join Date: Jul 2005
Location: Melbourne
Posts: 3,004
|
Works very well if you fall in one of the top tax brackets..
__________________
|
||
28-05-2010, 09:27 AM | #7 | ||
Join Date: Jun 2005
Location: Perth
Posts: 501
|
ive been considering this as well, been emailing figures and **** with the lease company and it looks like even if i do 15k kms a year i will still be about $3500 better off overall for the year???
surely im missing something in the calcs?? https://dspack.catch-e.net.au/client...=VehicleSearch G6E Turbo for $40k doing 15,000kms per year, salary at 60-80k what am i missing??? |
||
28-05-2010, 09:30 AM | #8 | ||
Join Date: Jun 2005
Location: Perth
Posts: 501
|
just looked at the fleetplus calculator, get totally different results??? need to do more research into the FBT implications me thinks as i have no friggen clue!
|
||
28-05-2010, 09:34 AM | #9 | ||
Mopar! But Own F6's..
Join Date: Dec 2005
Location: F6DELAIDE
Posts: 3,221
|
My old man purchased my ladies EF falcon through a 3 year novated leave. We bought it for around 12K when they were still selling for 18K at the time, also got the classiv model for no extra (air con, cruise, alloys etc). So worked out pretty good for us. HOWEVER.. If the car gets pranged within the 3 years, you still need to buy it.. And if you leave jobs within the time you need to pay the car out in full (Which if you cant get hold of 20+K at the time might see you struggling). Also make sure that you will be the only one driving the car.
__________________
F6 TYPHOON FPV 335 GT |
||
28-05-2010, 09:57 AM | #10 | ||
FF.Com.Au Hardcore
Join Date: Oct 2006
Posts: 2,228
|
Novated lease travels with you, if you change jobs
__________________
12.33@112mph (stock) 11.00@125mph 98 (387rwkw) (CMS) 10.19@139mph (450rwkw) (Nizpro)(SOLD) 10.25@138mph FG XR6T (new toy) (Nizpro) |
||
28-05-2010, 10:06 AM | #11 | ||
FF.Com.Au Hardcore
Join Date: Nov 2009
Posts: 3,876
|
The best bit of advice I have ever been told is to only lease if you were going to buy a car anyway, ie dont get a lease if you had no interest in buying a new car with a bank loan or cash.
Also Fords tend to have really good fleet deals, so what you lose in resale you gain in initial purchase price (which saves on interest as well) |
||
28-05-2010, 10:39 AM | #12 | ||
Flairs - Truckers Delight
Join Date: Aug 2006
Location: Brisbane Northside Likes: Opposite Lock
Posts: 5,731
|
I have seriously investigated novated leasing through my work. I have a few conditions about it:
1. Only do this if you can't put up with your current vehicle any longer, for whatever reason 2. Only do this if you were going to get a loan anyway, or if you are going to cleverly invest the money you would have spent on the car 3. You don't HAVE to do over 25000k a year, but it's worth about $1500 to you if you do, as opposed to 24999k. Y'see, as part of the package, they charge about 14.5% interest on the deal. At the end of the day it turns out to be more or less just an interest free loan. There is one way you can 'win' with it though the lease companies have fairly pessimistic depreciation figures, ie 45% residual after 3 years So if you get yourself something that holds its value well, and say the payout figure is $14k but your car is still worth $20k, Sell the car, payout the residual and pocket the rest!
__________________
Current: Silhouette Black 2007 SY Ford Territory TX RWD 7-seater "Black Banger"
2006-2016: Regency Red 2000 AUII Ford Falcon Forte Automatic Sedan Tickford LPG "Millennium Falcon" |
||
28-05-2010, 10:58 AM | #13 | ||
FF.Com.Au Hardcore
Join Date: Oct 2006
Posts: 2,228
|
Dont forget that profit is assessable income
__________________
12.33@112mph (stock) 11.00@125mph 98 (387rwkw) (CMS) 10.19@139mph (450rwkw) (Nizpro)(SOLD) 10.25@138mph FG XR6T (new toy) (Nizpro) |
||
28-05-2010, 10:59 AM | #14 | |||
Cane Farmer
Join Date: Jun 2006
Location: Tom Price, WA
Posts: 4,056
|
Scrap that guys.
Just got made redundant =(
__________________
1994 ED XR6T - Cobalt Blue. 2009 FG XR6 - Black. Quote:
|
|||
28-05-2010, 11:10 AM | #15 | |||
Back where I belong
Join Date: Jan 2005
Location: Mexico - Victoria
Posts: 947
|
Quote:
Seems like a pretty good system...and I know my job is secure and I'm in for the long haul here Wow two hours is a long time in the world it seems.. At least you could probably afford to buy one outright now.. Sorry to hear about your job.
__________________
Regards Craig |
|||
28-05-2010, 11:12 AM | #16 | |||
71Mach1
Join Date: Feb 2007
Location: Melb
Posts: 465
|
Quote:
?????????????????????????????????????????????????? ?????????? man! what's going on! I'd be horrified!
__________________
roses are #FF0000 violets are #0000FF all my base are belong to you |
|||
28-05-2010, 11:16 AM | #17 | |||
Cane Farmer
Join Date: Jun 2006
Location: Tom Price, WA
Posts: 4,056
|
Boss said it came as a shock to him too.
He just got the letter from head office this morning that my position was picked... Only a small office up here in Cairns...7 of us. Ah well, maybe I jinxxed myself? Comes as a big shock to me! Definatly didn't expect it...Get a payout figure next week...In the mean time, looks like I'll be looking for work!
__________________
1994 ED XR6T - Cobalt Blue. 2009 FG XR6 - Black. Quote:
|
|||
28-05-2010, 11:16 AM | #18 | |||
FF.Com.Au Hardcore
Join Date: Dec 2004
Posts: 22,928
|
Quote:
|
|||
28-05-2010, 11:22 AM | #19 | |||
FF.Com.Au Hardcore
Join Date: Jul 2008
Location: Parkdale, Vic
Posts: 1,016
|
Quote:
It comes to about $6K per annum, or roughly $500 per month on a car worth $40K.
__________________
"You can't fight stupid people - there's just too many of them" |
|||
28-05-2010, 11:23 AM | #20 | |||
FF.Com.Au Hardcore
Join Date: Jul 2008
Location: Parkdale, Vic
Posts: 1,016
|
Quote:
__________________
"You can't fight stupid people - there's just too many of them" |
|||
28-05-2010, 11:35 AM | #21 | |||
FF.Com.Au Hardcore
Join Date: Nov 2009
Posts: 3,876
|
Quote:
Sorry to hear that. Hopefully the payout will give you some time to have a break and then find some new work. |
|||
28-05-2010, 11:44 AM | #22 | ||
FF.Com.Au Hardcore
Join Date: Oct 2006
Posts: 2,228
|
Sorry to hear mate, just never know do you
__________________
12.33@112mph (stock) 11.00@125mph 98 (387rwkw) (CMS) 10.19@139mph (450rwkw) (Nizpro)(SOLD) 10.25@138mph FG XR6T (new toy) (Nizpro) |
||
28-05-2010, 11:45 AM | #23 | |||
FF.Com.Au Hardcore
Join Date: Nov 2005
Posts: 1,013
|
Quote:
otherwise just order the car with the options you want. |
|||
28-05-2010, 12:34 PM | #24 | ||
The Thread Killa
Join Date: May 2006
Location: Melbourne
Posts: 1,064
|
We got our car via a novated lease. Finally paid it off last year (residual was about $7000). It was a relatively painless process - I'd do it again if I wanted another car.
__________________
"It is the mark of an educated mind to be able to entertain a thought without accepting it." - Aristotle |
||
28-05-2010, 12:43 PM | #25 | |||
Join Date: Jun 2005
Location: Perth
Posts: 501
|
Quote:
it gives a Monthly lease of $1,342 and an employee contribution of $7,577 annually, $631 monthly. so does that mean that $711 ($1342 - $631) comes out of my pre-tax salary and the $631 has to be paid post tax? interesting that once the KM's hit 25k the employee contribution drops by $285 a month.. defo need to hit that mark for max savings.. **** they make it too complicated haha |
|||
28-05-2010, 01:34 PM | #26 | |||
FF.Com.Au Hardcore
Join Date: Jul 2008
Location: Parkdale, Vic
Posts: 1,016
|
Quote:
As someone pointed out earlier - novated leases are only worth it if you really need a new car. If you already have a good car they are a waste of time - you could invest $631 per month post tax in so many more beneficial ways. It's always a mistake to consider a car an asset. Very few are. They are a liability because they cost money in every sense, every day, unless they can be deducted such as a work van.
__________________
"You can't fight stupid people - there's just too many of them" |
|||
28-05-2010, 02:54 PM | #27 | ||
Join Date: Jun 2005
Location: Perth
Posts: 501
|
^^ well im selling mine at the moment to get into something newer so im thinking normal loan etc vs novated the novated shiould be the better optoin?
|
||
28-05-2010, 03:04 PM | #28 | ||
BF XR6
Join Date: Mar 2007
Location: Western Australia
Posts: 1,809
|
sorry to hear about your job, i had just bought my xr6 when i lost my job took me 4 months to find another one. cars now only just getting back up to scratch,
good luck with the job hunt
__________________
BA Falcon XR6 [JS92WA]in Winter White, 6 Speed ZF - BF Tail Lights, Pacemaker Twin 2.5" catback DBA Gold Series Rotors, 5% tint >>ITS BACK - The REBUILD IS ON, BF 2 Ghia 3v V8 5.4L, Full Fairmont Ghia Interior with FPV GTP seats,Boss Bonnet,BF Front End, DJR 302 Rear Wing, BF steering Column with BF ignition and FG keys, << 2010 FG Falcon XR6 [XRLNT] in Lightning Strike, 6 Speed Auto - 15% Tint, Ipod, Bluetooth, Climate Control, custom plates, DJR 302 Wing |
||
28-05-2010, 03:05 PM | #29 | |||
FF.Com.Au Hardcore
Join Date: Apr 2005
Location: Canberra
Posts: 13,465
|
Quote:
It really sucked trying to find one last year believe me : |
|||
28-05-2010, 03:45 PM | #30 | ||
71Mach1
Join Date: Feb 2007
Location: Melb
Posts: 465
|
I started a new job this year.
My previous company went belly up and after 15 years of service I lost the equivalent of a new GT-P! Life goes on!
__________________
roses are #FF0000 violets are #0000FF all my base are belong to you |
||