A friend has suggested that I consider Novated Leasing for my next car purchase. I've looked at the website of the business who our company deals with and it looks like the saving is down to making the payments from my pre-tax income. The vehicle price is the same as the RRP at the dealer but they claim to be able to get a fleet discount.

What other savings are there?

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MY10 WRX hatch, Commodore VE SS, Audi Quattro, Toyota MR2, Peugeot 205 GTi, Mk2 Cortina 1600E, Triumph Dolomite Sprint

I have my car on the novate. You don't pay GST. I took mine out for 5 years and I worked it out that my pretax pays for all my interest, or all my running costs. That is the savings I worked out.

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Return of the Droid

if its fully maintained, all operating costs come out of your pre-tax income - rego, insurance, servicing, tyres, fuel etc

but FBT fucks it up a bit, basically the more k's you do the more effective it is, anything less than 20,000km's its not really worth while


also you're pretty much LOCKED into the contract, unless you throw bulk cash to step out before your time

Make sure you get up to date info. Laws for new leases changed this month.

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Subaruless

This.

Juliar changed the laws, so kms make no difference now. Everyone is stung at a high 20% rate.

If you are getting a loan, they are worthwhile to look at. If you are buying outright, that is still the best option. People think novated leases are win because it's pre-tax, no gst on the purchase etc. But then you get hit with things like FBT which adds up quickly and you own nothing at the end of the lease.

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[COLOR="Gray"]550Nm off a 2L... Just wish it was in the dak dak...[/COLOR]

I have taken novated leases on my last three subaru's and come out in front each time. check what your company's policy is on FBT. My employer pays all FBT obligations.

Autopia | Novated Leases | Salary Sacrifice a Car | Car Salary Packaging FTW

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Funny looking German Subaru

you're winning if FBT is paid, not at all if it comes out of your pocket, I will never do it again

If you service as Subaru (yes i said it :P), you will also get fleet discount. Which works out a decent saving on the 50/100 services. Think I saved around $150 on the 50 than the cheapest quote from workshops.

To be honest it really depends on YOUR circumstance. Do you have equity/redraw to whack it on your mortgage? How many km's do you do per year (although, not applicable with latest govt ass raping). I was doing 25k km +, however work relocated and I no longer have a parking bay, so I have revised my lease for < 20k km which adjuststs your pre-post pay deduction amounts.

I don't think I have worked out in front - especially when you take into consideration the residual payment. Yes compared to getting a car loan from a bank, but some of the financing companies offering low % car loans etc would probably work out slightly cheaper.

Again, all Salary Sacrificing companies are different. For me to exit my lease prematurely I am up for the interest. Whereas another person I know who went through ORIX simply gets a bank loan to payout the current owing figure. Just do your research. Technically speaking, you are also not meant to modify / track / race your car either....

BUT, having a fully maintained car that you do not have to budget for is great. I am due to spend 3k (tyres, insurance and 100k service) and I dont have to blink an eyelid.

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teejay: If I wanted a comeback Id wank in front of a fan