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+--- Thread: Novated lease (/Thread-Novated-lease)
Pages: 1 2
Novated lease - leaf911 - 07-12-2012 01:29pm
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!
Novated lease - Jai - 07-12-2012 04:17pm
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
RE: Novated lease - leaf911 - 07-12-2012 04:20pm
No, i would be paying for the full lease via salary packaging.
Novated lease - Jai - 07-12-2012 04:27pm
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.
RE: Novated lease - Nut - 08-12-2012 01:31am
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.
RE: Novated lease - leaf911 - 08-12-2012 07:23am
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.
RE: Novated lease - DefLeppard - 08-12-2012 02:04pm
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)
RE: Novated lease - BA74 - 08-12-2012 09:51pm
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...
RE: Novated lease - leaf911 - 09-12-2012 08:00am
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.
Novated lease - Jai - 09-12-2012 08:02am
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.