+ Reply to Thread
Results 1 to 7 of 7
  1. #1
    Join Date
    Nov 2012
    Posts
    488
    Thanks
    57
    Thanked
    176
    Reviews
    0

    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
    Join Date
    Oct 2011
    Location
    Newcastle, NSW
    Posts
    3,974
    Thanks
    1,595
    Thanked
    1,318
    Reviews
    0
    Achievements:Topaz Star - 500 postsAmber Star - 2,000 posts
    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.

  3. #3
    Join Date
    Aug 2008
    Posts
    2,525
    Thanks
    673
    Thanked
    336
    Reviews
    0
    Achievements:Topaz Star - 500 postsAmber Star - 2,000 posts
    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

  4. #4
    Join Date
    Jul 2010
    Posts
    4,717
    Thanks
    3,730
    Thanked
    4,019
    Reviews
    0
    Achievements:Topaz Star - 500 postsAmber Star - 2,000 posts
    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.

  5. The Following User Says Thank You to Wise Enough For This Useful Post:

    BH-KatiesMum  (04-08-2015)

  6. #5
    Join Date
    Feb 2014
    Posts
    3,371
    Thanks
    337
    Thanked
    1,023
    Reviews
    13
    Achievements:Topaz Star - 500 postsAmber Star - 2,000 posts
    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
    Join Date
    Sep 2011
    Posts
    7,160
    Thanks
    1,701
    Thanked
    3,397
    Reviews
    3
    Achievements:Topaz Star - 500 postsAmber Star - 2,000 postsAmethyst Star - 5,000 posts
    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
    Join Date
    Nov 2012
    Posts
    488
    Thanks
    57
    Thanked
    176
    Reviews
    0
    Thanks guys I think I'll just buy it then 😄 😄😄😄


 

Similar Threads

  1. Slow cooker a good idea with new born?
    By LittleDove in forum Recipes & Lunchbox Ideas
    Replies: 4
    Last Post: 20-01-2015, 17:47
  2. Breaking a lease...
    By callmedragon22 in forum General Chat
    Replies: 21
    Last Post: 01-11-2014, 20:41
  3. Replies: 34
    Last Post: 30-08-2014, 10:03

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
FEATURED SUPPORTER
Sarah Tooke Childbirth & Parenting EducationProviding private, personalised antenatal childbirth & parenting education to expectant parents in the comfort of their ...
REVIEWS
"Made bed time less anxious"
by Meld85
My Little Heart Whisbear - the Humming Bear reviews ›
"Wonderful natural Aussie made product!"
by Mrstwr
Baby U Goat Milk Moisturiser reviews ›
"Replaced good quality with cheap tight nappies"
by Kris
Coles Comfy Bots Nappies reviews ›