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Novated lease
leaf911
 

Posts: 40
Joined: Aug 2012
Location: Brisbane
Post: #1
Novated lease

Hi there,

Am wondering if anyone has bought an evoque using novated lease. If so, am wondering what the benefits are over buying it upfront with corporated discounting. Any help would be appreciated. Cheers!
07-12-2012 01:29pm
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Jai
 

Posts: 260
Joined: May 2012
Location: Australia
Post: #2
Novated lease

Is the company you work for paying part of the lease as part of your remuneration? I wouldn't lease a car on a personal level, it may be beneficial if you run your own business etc
07-12-2012 04:17pm
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leaf911
 

Posts: 40
Joined: Aug 2012
Location: Brisbane
Post: #3
RE: Novated lease

No, i would be paying for the full lease via salary packaging.
07-12-2012 04:20pm
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Jai
 

Posts: 260
Joined: May 2012
Location: Australia
Post: #4
Novated lease

A friend of mine just did that. I still think you should seek the advice from a financial advisor, not your accountant (they offer different types of advice). I would think if there is any benefits it might be only worth it if you are in the top tax bracket. I got finance under 7% so it's worth doing the sums of what the salary sacrifice pricing contains interest wise. Also I got real good insurance for under 800 per Annum and with my corporate partner programme offer I got free servicing for 3 years, which is valued at around $2700. So start working on the breakdown on what the true cost of the lease is, it might just not be as good as it sounds.
07-12-2012 04:27pm
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Nut
 

Posts: 20
Joined: Oct 2012
Location: Australia
Post: #5
RE: Novated lease

I looked into this heavily when I bought my evoque. The savings are minimal, somewhere in the order of $2000 per year. But that is comparing leasing (all running costs are paid pre-tax) Vs standard loan. If you are able to salary package (at least part of) your repayments then that is the best way to go.

The leasing sets a fixed cost for tyres, fuel, maintenance etc. It does not take into account shopping around for the best price on tyres or fuel etc. Also, depending on the business you work for you may be entitled to receive the 3 years free corporate servicing. All of this together puts you well ahead of leasing.
08-12-2012 01:31am
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leaf911
 

Posts: 40
Joined: Aug 2012
Location: Brisbane
Post: #6
RE: Novated lease

Hi Nut,

When we visited our LR Dealer, we were told that we could discounts either via novated leasing or if we chose not to lease, we could get the corporate 3 year scheduled servicing for free, plus $1k off the delivery. After doing a bit of research, my gut feeling is that it might be better to just try and get a real good deal, a good insurance rate, save some money also by doing the paint/leather protection aftermarket. Not sure if the free servicing is capped, and whether it allows for a loan car.

Anyway, would still be interested to hear more about anyoneelse who have also gone through or thout of novated leasing, or have decided to take up the corporate discounting instead.
08-12-2012 07:23am
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DefLeppard
 

Posts: 209
Joined: Nov 2011
Location: Victoria, Australia
Post: #7
RE: Novated lease

I did both -
got the corporate discount, and also purchased the car under a corporate hire purchase arrangement
The CHP lets me claim the interest i pay as a tax deduction, and I also depreciate the car each year (and claim a tax deduction for this amount to)
Have never liked novated leasing due to the Fringe benefits tax implications.
I have used Stratton Finance previously to help walk me through my options on car leasing. (as varies depending on your own situation)

SD4 Pure, Auto, 5 dr, Mauritius Blue, Pure Tech Pack, Reversing Camera, Front parking aid, Heated seats, Sat Nav, mud flaps. after market tint.

http://flic.kr/s/aHsjyQDpCj
08-12-2012 02:04pm
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BA74
 

Posts: 224
Joined: Jun 2012
Location: Central Coast NSW, Australia
Post: #8
RE: Novated lease

My last car was Novated but the new legislation regarding FBT makes it much less effective. Have a Commercial Hire Purchase on my Evoque now. As above lots of deductions and no FBT...

Gone - Range Rover Evoque - Si4 Pure - 5 Door Fuji White
08-12-2012 09:51pm
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leaf911
 

Posts: 40
Joined: Aug 2012
Location: Brisbane
Post: #9
RE: Novated lease

I have not heard of CHP. Sounds like the best of both worlds to me. Is that part of salary packaging or can anybody do that? I will not be using it for business, only privately.
09-12-2012 08:00am
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Jai
 

Posts: 260
Joined: May 2012
Location: Australia
Post: #10
Novated lease

With no business use you're best to purchase outright to be honest. Contact alphera finance, you should be able to score less than 7% finance.
09-12-2012 08:02am
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