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  1. #1
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    Default Novated lease is it a good idea?

    Anybody a financial adviser or know much about tax? When is getting a new car and putting it on a lease a good idea?

  2. #2
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    We have a novated lease, have for the last year. For us, it helped to bring DH wage into the lower tax bracket, saving us $100 a week on tax. If you claim family tax, we received more back with this due DH taxable income being much lower than his actual wage.

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    DH has one, he's still in the same tax bracket unfortunately but its made the household financial management easier for me. I dont have to factor in his car expenses at all and he doesn't have to eorry if theres money in our account for fuel etc. He'd put at least $100 fuel a week if not more

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    It used to be very economical if you were doing over 25,000km but then the government changed it. Now there's not too much benefit for me. However if you're buying a new car the fleet buying discount through your novated lease company can reduce the price. I saved about 10k on my car.

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    I've looked into it with work, nearly convinced however it was pointed out by a colleague ( then confirmed by novated lease sales man ) if you had to sell then you're liable for remaindered of $$ on contract and as the cars not yours sale revenue wouldn't offset balance.

    Ie purchased a car for 20k, paid 5k towards it, had to sell 3 years into owning it and value is now 10k.
    Under normal loan you only need to pay the remaining 5k ( 15k-10k =5k) where under the lease ( my one anyway) I wouldn't see the 10k and I still am liable for 15k

  7. #6
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    Back when youg had to kms per year it was worth it.
    But now I'm not so sure.
    If you keep the car for the life of the lease. ..you usually have enough to pay out the balloon payment at the end and keep the car. It's good for budgeting etc.
    We've had three cars on lease. But i wouldn't do it anymore. It did help with tax and there was a small amount of benefit.
    Worst part. ..don't lose your job! My DH has been made redundant three times which left us liable for the full repayment. Which was higher than a regular car loan.
    Honestly. ..I wouldn't do a novated lease again. I don't think.

  8. #7
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    Thanks guys I think I'll just buy it then 😄 😄😄😄


 

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