Questions Regarding Novated Lease for VZ SS

[gmeup]

I am thinking of getting a VZ SS on a Novated lease does anyone have a similar car on a lease what are the lease repayments? and would you reccommend them? Im a real estate agent i drive about 20-25k per year

[Beej]

I am thinking of getting a VZ SS on a Novated lease does anyone have a similar car on a lease what are the lease repayments? and would you reccommend them? Im a real estate agent i drive about 20-25k per year

If you are a real estate agent and you use your car primarily for work you would be better off leasing it yourself outright, claim all the GST you pay as a input tax credits for your business, and use a log book to claim a (high) percentage of the cars running costs as a tax deduction. You pay a lot less then vs paying for the car + FBT as you do under a novated lease arrangement.

Novated leases are generally the way to go for salaries employees who don't really use there car much for work but drive a lot anyway.

Cheers,

Beej

[Devoran]

I novated my VZ SS, optioned with:

leather/climate control
headlight prots
bonnet prot
boot liner
mats
bluetooth kit

and I'm paying just on $16k/yr (that's total cost of lease).

PS. to what Beej says above... my employer claims the tax credits on the novated leases and allows log book submission for FBT calculation (I do mostly work kilometres, about 30k a year), so you might want to look into whether your company does this. Makes it quite cost effective in the end. If they don't do this though, he's right, go for the personal lease.

[Zero5]

Devoran - How many years is your lease over and does in include maintainence (ie. Petrol)? Sound like a good deal.

[Beej]

Hi Devoran - so your novated lease monthly cost is low because basically you are paying close to zero FBT right?

Cheers,

Beej

[Rod]

Am I being shafted??? Devoran paying 16k/year where mines 25k/year. Is the difference because mine is 3year lease, >25000km/yr, no work kilometres?

Admittedly I only tried two lease companies and took the cheaper but did I go to the 2 most expensive companies for quotes or something?

[Beej]

Am I being shafted??? Devoran paying 16k/year where mines 25k/year. Is the difference because mine is 3year lease, >25000km/yr, no work kilometres?

Admittedly I only tried two lease companies and took the cheaper but did I go to the 2 most expensive companies for quotes or something?

Rod - you are not being shafted - Devoran is playing less because he is logging *most* of his usage as work related, thereby reducing the FBT liability his company accrues accordingly. If you log 90% of the km's the car does as business/work use, then you only pay 10% of the usual amount of FBT - which is somewhere between 10 and 25% of the original cost of your car each year remember!!

When my car was on a Novated lease (finished now) FBT was something like $8k per year (no business/work km's being logged).

Cheers,

Beej

[Devoran]

nod, Beej is right. The other reason it's a bit cheaper is it's over 4 years.

[Devoran]

also should mention that leasing company got me a $7k discount

[Rod]

ok, i feel better now...you know that sinking feeling when you think you've been ripped off, well its gone :)

[SteveK]

I am thinking of getting a VZ SS on a Novated lease does anyone have a similar car on a lease what are the lease repayments? and would you reccommend them? Im a real estate agent i drive about 20-25k per year

gmeup, I've been looking into leasing a VZ Monaro myself and find there are a whole lot of factors involved in determining your final cost. Depending on what your salary is affects the savings you'll be getting when you determine your FBT. So basically the best option for leasing is if you are well into the top tax bracket (of 48% in the dollar) and most, if not all of the cost of the car is coming out of this bracket and then the FBT is around 11% because you're in the 25,000km to 40,000km travel window (of 11% in the dollar). Theoretically that means you're only paying 11% tax for this chunk of money and the rest is being used to pay off the car rather than 48% being taken out by default and the rest going toward a personal loan. Confusing? Good cos it was for me too.

If you are after 'rough' estimates then, go to the following site nlc.com.au (http://www.nlc.com.au) (under the 'CALCULATE YOUR TAX BENEFIT" header) and fiddle with their interactive flash tool for calculating your novated lease cost.

Hope that link helps yourself and others.

Cheers,
Steve

[HOTSV6]

i get a very good deal at a major fleet company and just did a quote on a VZ SS with leather and guards etc and it came out to be $22600 pre tax over 3 years at 25000kms a year on a fully maintained operating lease. Details are:
Lease: $14.4k
FBT $5.4k
Fuel $2.8k

[jneil]

i get a very good deal at a major fleet company and just did a quote on a VZ SS with leather and guards etc and it came out to be $22600 pre tax over 3 years at 25000kms a year on a fully maintained operating lease. Details are:
Lease: $14.4k
FBT $5.4k
Fuel $2.8k

25000km a year and only $2.8k on juice...GOOD LUCK!! I'd be looking closer to $3.8k, especially with the price of juice at the moment.

Jeff.

[sloone]

25000km a year and only $2.8k on juice...GOOD LUCK!! I'd be looking closer to $3.8k, especially with the price of juice at the moment.

Jeff.
Depends on who is paying the GST on the fuel? My company pays so I get fuel cheaper, but I've blown the fuel economy now I have a 3.7 diff :D .

[HOTSV6]

25000km a year and only $2.8k on juice...GOOD LUCK!! I'd be looking closer to $3.8k, especially with the price of juice at the moment.

Jeff.


I would certainly go over the fuel levy but this particular fleet company do not charge me any extra unless I go more than 5000kms over the lease limit. If i buy fuel at a $1.50 it makes no difference. Prety sweet deal eh?

[jneil]

In my Fully Maintained Operating Lease (VYII SS 6M over 2 years/60000km), I have allocated $4k for juice based on the 30000km+ per year that I do (and the 15L/100km average) and at a dollar per litre, I am about $500 too short! It all worked out nicely when I did it, but as the fuel price rises beyond a joke, I'll have to use about $5k next year to make up the shortfall.

Of course using the 4c off Shell vouchers etc. helps a little ($2.50 saving per week = $130!), gotta use Optimax though. The other added bonus is that I told them to stick their Motorcharge card up their butts and I use my credit card, so I get FlyBuys, Visa points and 4c off!! I get a bunch of receipts and claim them back every 2 months or so.

HOTSV6: That deal sounds a little odd?? So you can give the car an absolute flogging, suck as much fuel as you can, don't do over 5000km more than the lease, and pay no more than $2.8K???

Jeff.

[HOTSV6]

In my Fully Maintained Operating Lease (VYII SS 6M over 2 years/60000km), I have allocated $4k for juice based on the 30000km+ per year that I do (and the 15L/100km average) and at a dollar per litre, I am about $500 too short! It all worked out nicely when I did it, but as the fuel price rises beyond a joke, I'll have to use about $5k next year to make up the shortfall.

Of course using the 4c off Shell vouchers etc. helps a little ($2.50 saving per week = $130!), gotta use Optimax though. The other added bonus is that I told them to stick their Motorcharge card up their butts and I use my credit card, so I get FlyBuys, Visa points and 4c off!! I get a bunch of receipts and claim them back every 2 months or so.

HOTSV6: That deal sounds a little odd?? So you can give the car an absolute flogging, suck as much fuel as you can, don't do over 5000km more than the lease, and pay no more than $2.8K???

Jeff.


Thats exactly right. i pay 11c per kilometre regardless of the type of engine my car possesses. 11c X 25000kms = $2750 per annum. As I said, I get a very good deal with this particular fleet company and if I could have afforded it, I would have bought a V8 instead of my SV6 for this saving alone. Needless to say, I put BP ultimate or optimax in it every time.

[gmeup]

I get a very good deal at a major fleet company and just did a quote on a VZ SS with leather and guards etc and it came out to be $22600 pre tax over 3 years at 25000kms a year on a fully maintained operating lease. Details are:
Lease: $14.4k
FBT $5.4k
Fuel $2.8k


is that over $22600 in total over 3yrs or per year????


Thanks for all your help guys i have been quoted $12000 per year or $230 per week for a VZ SS fully maintained over 4yrs I will get paper work to read over today and get back to everyone asap... cheers!

[jneil]

Thanks for all your help guys i have been quoted $12000 per year or $230 per week for a VZ SS fully maintained over 4yrs I will get paper work to read over today and get back to everyone asap... cheers!

Does that $12k/year include fuel and insurance? If so that seems like a bloody good deal. What is the balloon (if any) at the end of the 4 years??

With the new EBA at my work, I have been informed that in 18 months, when my current lease expires, I won't be able to get a V8 on an Operational Lease (which I currently have - I'm on my 3rd 2yr lease). I can get a Novated Lease, but it will cost me about $6k more per year! Guess I shouldn't complain, I'll be paying what everyone else already is!

Jeff.

[gmeup]

ok the lease came out to be $13790 per year on a vz sss

this includes petrol,insurance,rego and maintaince. Its 48 months and the residual value at the end is $16280 at the end of the lease....

[jneil]

ok the lease came out to be $13790 per year on a vz sss

this includes petrol,insurance,rego and maintaince. Its 48 months and the residual value at the end is $16280 at the end of the lease....

I don't think this is too bad of a deal. Although, perhaps have forgotten something or stuffed it up totally, but it look pretty good.

Total VZSS $13790*4years = $55160 + $16280residual = $71440 over the 4 years

but out of that you take

Fuel @ $2800*4 = $11200
Insurance @ $1000*4 = $4000
Registration @ $500*4 = $2000
Maintainance @ $500*4 = $2000
Total deductions = $19200 this is probably less than what you'd pay on a decently priced car over the 4 years

So $71440 - $19200 = $52240 which is about 2 grand more than rrp, so the lease company is only getting about $500 a year in interest.

Jeff.

[Rod]

I know it varies from driver to driver but there appears to be no allowance for tyres in there, thats about $2000/year as well for some.

[jneil]

I know it varies from driver to driver but there appears to be no allowance for tyres in there, thats about $2000/year as well for some.

$2k a year!! :eek: Me thinks someone has a little too much fun! :burnout:

[EL2]

$2k a year!! :eek: Me thinks someone has a little too much fun! :burnout:

I've got a 4yr lease @ 25k km per year (sidenote : I may have underestimated the km I will do : the SS has it's 20k service yesterday after 7.5 months, so I now estimate at least 30k per year.... makes no difference to FBT figures cos I won't reach the magical 40k km mark, but cuts into my fuel calculations..... but too late, the lease has already been signed sealed and delivered.... oh well... ;) )

I have allowed for 2 lets of replacement tyres during the lease, at $380 per piece, thus $3040 of tyres over the 4 years :D

[Rod]

$2k a year!! :eek: Me thinks someone has a little too much fun! :burnout:

While I enjoy a bit of wheelspin I'm too paranoid about getting caught/confiscated to enjoy it often. Most of my tyre wear is actually on the fronts as I love the way it goes round corners with a bit of speed, and the kids are always begging for the "rollercoaster" which is basically doing halfturns on the wheel rapidly im opposite diretions (at low speeds) to get them rolling around in their seatbelts. $2000 was a bit of rounding up but its easily a full set in less than a year.