Opinions on upgrading from SSV to R8 novated?

[rastas]

Hello people,i currently paying loan on 08 SSV voodoo m6 sedan(blue dash and blue leather inserts).Thing is with my works new EBA i can now do a Novated lease.For roughly the same fortnightly payment i could get into a new R8 LS3.I have never used a novated lease before and wondering if it is worth it.Do i sell the SSV pocket a few bucks after paying out loan then slip into an R8?

Thanks in advance

[Ghia351]

I'd get some financial advice first for your specific circumstances if you haven't novated before. I take it this isn't a "work" vehicle where expenses are tax deductible? Km's travelled and FBT are considerations when novating and sometimes you don't gain by novating compared to other forms of financing.

[SSV009]

My last four cars, including my current 09 SSV sportwagon, have been purchased on a novated lease, I wouldn't do it any other way. Obvoiusly I use the vehicle running around for work as well.

There are huge benefits on all car running costs being paid for out of you pre tax dollars rather than ofter tax dollars. This includes servicing, petrol, tyres rego the whole lot.

Most lease company's will provide you with a novated and non novated comparison on purchase price and running costs of the new vehicle both annually and over the term of the lease. You will be blown away at how much tax you will save by running the car through pre tax dollars.

Each to their own as they say, it works for me.

If you do consider the novated lease, check with the lease company first as they may have a policy on restricting modifications to the car. The lease company I use allows suspension and wheel upgrades. I have not yet asked about engine or exhaust yet, but I have a feeling it might not be a problem.

I would get some advice first from your accountant then a lease company, if it all check out, bite the bullet and get the best vehicle you can afford on you lease repayments.

I hope it all works out for you.

Good Luck

Jay

[Rub]

Leasing works great for me, i got my SS on novated lease and i am saving $2000 per year compared to purchasing it through a loan etc..

There are some leasing companies that will even purchase the car off you (which will pay off your loan) then lease the car back to you. A couple of mates have done that and has worked out extremely well for them.

[CraigH]

The answer to your question will depend on your likely usage (mileage) each year as that will determine the FBT costs in the novated lease. It will also depend on if you can normally claim your car usage as a tax deduction and to what %. So the choice could be claim % or Novate.

Cant recall the exact numbers but if you do over 20k a year a novated lease gets a lot cheaper in FBT and makes the break even point between lease/corporateHP and better.

For me as i do low kms the novated lease is much more expensive than lease or corporate HP. I can however claim 75% of my usage as a tax deduction if I use other methods (Lease etc).

[rastas]

Because i am a shift worker and public transport doesnt run to work location for all start and finish times,i do claim km's on tax.i believe after may budget even 20-30 000km's will be subject to 20%,correct me if wrong.

[Roonstain]

It depends on how much you owe on the SSV mate
You may end up quite out of pocket after the penalties and paying some proportion of the interest not paid yet. You may not sell the SSV for as much as that figure, so you may lose out.

I would speak to my bank and request a payout figure so that you are completely aware as to what you would need to sell the SSV for, so that this can be sound financially.

Sounds like a nice upgrade though - I have just signed the paperwork for an upgrade of my own - an 06 VE omega (modified by me) to a brand new 09 SSV sportwagon in voodoo. Payments arent that much more anyway.
The big thing i had to get through was the payout figure for my loan on my current car - once that is sorted you know where you stand.

Good luck mate, I hope it works out for you
Cheers
Mark

[rastas]

I will not be paying any exit early loan fees, and will have have a few extra bucks to put on the house after sale.
Plus the oprotunity to upgrade,re lease or buy the vehicle at lease end sounds good.

[LSX-438]

could you not switch the SSV to the novated lease arrangement? I think you could. Save even more. I wouldnt ask about the mods (chances are the answer will not be positive) just do it

[SS Enforcer]

could you not switch the SSV to the novated lease arrangement? I think you could. Save even more. I wouldnt ask about the mods (chances are the answer will not be positive) just do it

That would be the cheapest option but I think the OP really wants an LS3 R8 .

cheers

[fastestls7]

how to supose to drive the 6lt on you P's
It depends on how much you owe on the SSV mate
You may end up quite out of pocket after the penalties and paying some proportion of the interest not paid yet. You may not sell the SSV for as much as that figure, so you may lose out.

I would speak to my bank and request a payout figure so that you are completely aware as to what you would need to sell the SSV for, so that this can be sound financially.

Sounds like a nice upgrade though - I have just signed the paperwork for an upgrade of my own - an 06 VE omega (modified by me) to a brand new 09 SSV sportwagon in voodoo. Payments arent that much more anyway.
The big thing i had to get through was the payout figure for my loan on my current car - once that is sorted you know where you stand.

Good luck mate, I hope it works out for you
Cheers
Mark

Try stratton finance in melb, ask for Chris hanson, ive got my SS on a Chatel Mortgage
I'd get some financial advice first for your specific circumstances if you haven't novated before. I take it this isn't a "work" vehicle where expenses are tax deductible? Km's travelled and FBT are considerations when novating and sometimes you don't gain by novating compared to other forms of financing.

[Ghia351]

how to supose to drive the 6lt on you P's

Try stratton finance in melb, ask for Chris hanson, ive got my SS on a Chatel MortgageI'm no export however I thought to use a chattel mortgage and claim the gst in the same BAS reporting period as purchase you would need to be GST registered, purchasing a business asset which naturally includes vehicles (hence chattel terminology) which often means you have/need a registered business as well. Great for cash flow as I've used this method 4 times.

[Jarhead]

Another thing to consider in these economic times is Job security.

Consider carefully whether you will be working for the same company in the same position for the next few years.

I know of people that have transferred to another job and the car lease is a pain in the ar$e. Some companies simply won't do them.

I'm not trying to be a party pooper - just consider your options. Remember leases are very difficult to get out of with depreciation in the first couple of years.

If you've considered all this and still plan to proceed then Novated is the way to go. Just get your milage estimates on the conservative side. You will probably drive the R8 more than you think.:)

[rastas]

Thanks for all replies.Yes my job is very secure 11yrs service so far.Will put SSV up for sale next week and if i get the price i am after it is a done deal on R8.Evoke in leather m6.

Cheers

[shakows]

I would still make sure you get some sort of Novated lease insurance

If something happens in the first couple of year's of the lease and the lease is ended you will end up owing a lot more then what the car is worth

Due to the fact they use simple interest and calculate the payments upfront

[rastas]

I got them to put that insurance in the quote.Like you say just in case.

[tim_k]

I'd wait until after the Federal Budget before looking at anything.

[matthewfnorbert]

remember if you lose your job, the novated lease is 100% yours, the company can just walk away.. you also will not be able to claim the lowest fbt rate as you do not do enough km's pa.

[Roonstain]

how to supose to drive the 6lt on you P's


business vehicle - not officially mine - my employer only owns one vehicle - and it will be the SSV
Exemption is ready to go

[shakows]

remember if you lose your job, the novated lease is 100% yours, the company can just walk away.. you also will not be able to claim the lowest fbt rate as you do not do enough km's pa.

Thats why you get Novated Lease insurance, and the OP has done so

[mrtockley]

business vehicle - not officially mine - my employer only owns one vehicle - and it will be the SSV
Exemption is ready to go

Roonstain,

It doesn't matter who owns the vehicle, if it's a V8 and you are driving with a Victorian drivers licence and you obtained your probationary licence after July 1st 2007 then you are up for $227 and 3 demerit points everytime you are caught driving it (as per Road Safety (Drivers) Regulations R 211A). If you get pulled over without 'P' plates too you'll get stung another $119 and 3 demerits ..

Tock.

[MTC]

Roonstain,

It doesn't matter who owns the vehicle, if it's a V8 and you are driving with a Victorian drivers licence and you obtained your probationary licence after July 1st 2007 then you are up for $227 and 3 demerit points everytime you are caught driving it (as per Road Safety (Drivers) Regulations R 211A). If you get pulled over without 'P' plates too you'll get stung another $119 and 3 demerits ..

Tock.

He lives in NSW so maybe things are different there to VIC??

[Jarhead]

business vehicle - not officially mine - my employer only owns one vehicle - and it will be the SSV
Exemption is ready to go

I've tried to stay out but like the scorpion and the frog, I will always be a scorpion.

The owner of the vehicle is not responible for the driver of the vehicle or the actions taken by said driver. If you speed in your father's HSV then you get the demerit points and whatever licence infringment your are commiting at the time. In you case as a P plate driver you are not legally allowed to drive a SSV.

Also, I'm curious as to the finance side of the deal. If you are paying out a personal loan to your bank, how are you organising the next loan in a business name? The vehicle has to be insured as an encombered asset, therefore the insurance company will need the licence details of the primary driver of the vehicle.

Even if you manage to get past the finance company, if you have an accident and write off the car, you will not be covered by insurance.

Have you considered buying an Omega sportswagon and transforming it into a SSV?:jester:

[Roonstain]

what none of you guys seem to realise is that there are provisions for this kind of thing
If your employment requires you to drive a prohibited vehicle - you can get an exemption letter from the RTA
its an 8 page form and you need to attach a letter from your boss on company letterhead explaining the situation

95% of my driving is to do with my work, and my employer only will own 1 business vehicle, and I am required to drive it

And to those who assume that I do not know how to work out the finance and insurance properly, maybe you should do some reading yourself! I am doing everything by the book here.

And jarhead - typical retarded post by you - i have come to expect such dribble!

[Devil CV8]

what none of you guys seem to realise is that there are provisions for this kind of thing yes there are.

If your employment requires you to drive a prohibited vehicle - you can get an exemption letter from the RTA actually you fill out a form, pay your money and hope the RTA agrees with the exemption request


95% of my driving is to do with my work, and my employer only will own 1 business vehicle, and I am required to drive it

I'd love to see the explanation on why your employer requires you to now drive a prohibited vehicle when previously they didn't.
I do hope that you have the exemption already, and not just reading the exemption form and thinking it will be ok. RTA have rejected exemption requests previously.


from the form:
An exemption may be granted to a:
person who can demonstrate that an exemption is required for employment purposes,

and the best bit
The RTA may withdraw the exemption at any time.

Having read the form thoroughly.
You need to identify the prohibited vehicle, which means no exemption is possible until after the car is delivered, and then you won't be able to drive it until an exemption is granted. (If)
Not sure if you've mentioned it, but what is your job that requires you to drive 24/7, and will convert any non business related travel into business related travel.
On the form:why can't you use existing forms of transport, days and hours of employment, details of work duties
As the local RTA has nothing to do with granting exemptions it will be an interesting exercise.
good luck, you are going to need it.

[Jarhead]

what none of you guys seem to realise is that there are provisions for this kind of thing
If your employment requires you to drive a prohibited vehicle - you can get an exemption letter from the RTA
its an 8 page form and you need to attach a letter from your boss on company letterhead explaining the situation

95% of my driving is to do with my work, and my employer only will own 1 business vehicle, and I am required to drive it

And to those who assume that I do not know how to work out the finance and insurance properly, maybe you should do some reading yourself! I am doing everything by the book here.

And jarhead - typical retarded post by you - i have come to expect such dribble!


There is no way the RTA will provide you with an exemption to drive a 6lt V8 unless you are required to by your employer. To my knowledge, even if you were required - by form of sworn written affidavit - there is no obligation for the RTA to provide such an exepmtion. In other words, you could pay cash for the car an still not be legally allowed to drive it.

Now if your boss is prepared to do the finance and insurance himself in the business name and you drive the car unlicenced,then you will not be insured in the event of an accident.

While you have been coy about the details of the loan/insurance etc., I have assumed that you are personally buying the SSV (allbeit in the name of a business). Again, no finance company will allow you to take delivery of a vehicle without comprehensive insurance. NO INSURANCE COMPANY WILL INSURE A P PLATE DRIVER TO DRIVE A SSV. Regardless of your 1 in a billion chance of getting the exemption from the RTA, NO INSURANCE COMPANY WILL INSURE A P PLATE DRIVER TO DRIVE A SSV.

Does this make sense yet mate?

The only way you will be driving a SSV as a P plate driver is -

1. without insurance

2. without the required drivers licence

3. both of the obove

I realise my jibe about the "mock up part II" was a low blow and accept your derogatory remark as deserved.

As much as you must be burning to offload the "OSV", this is not the answer!

[Devil CV8]

- there is no obligation for the RTA to provide such an exepmtion. exactly. there's plenty of stories on various forums of people applying for and being refused an exemption


Now if your boss is prepared to do the finance and insurance himself in the business name As he, according to his profile, a landscaper and has talked about towing a trailer with mowers etc, my guess is his employer is himself or a family member.

NO INSURANCE COMPANY WILL INSURE A P PLATE DRIVER TO DRIVE A SSV. they will, but it will cost a small fortune...

Have a read on the nsw rta website about the exemption, then read the form.

[mrtockley]

Hmm,

well it might be pretty easy to get an exemption for work through the RTA. I'd like to know the justification for 'needing' a 6 lt V8, as if it's purely for towing, there are far better choices out there that are still legal, like a Navara etc that can pull over 3 tonne or there abouts.

The other issue as people are mentioning is the insurance. It would ultimately be up to the car owner and I would cringe at the costs..

I'm 33, a rating 1 for life with AAMI, never had an accident or lost my licence and I pay $1,100 !

Good luck if you can wangle it, but I'd hate to be the poor bastard who has to pay the premium ..

Tock.