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Car lease plan?


Guest alan_blue

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Guest alan_blue

As im sure some are aware here in U.K you can get a car lease plan where you per month for a car and hand it back in 3 years and get a new one. Obviously you dont own the car but it has extra benefits like running costs and maintenance etc.

 

My question is does anyone know if this happens in Oz at all? We are just researching as we are leaving in 9 weeks!!

 

many thanks in advance

al

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As im sure some are aware here in U.K you can get a car lease plan where you per month for a car and hand it back in 3 years and get a new one. Obviously you dont own the car but it has extra benefits like running costs and maintenance etc.

 

My question is does anyone know if this happens in Oz at all? We are just researching as we are leaving in 9 weeks!!

 

many thanks in advance

al

 

You can either lease a car just like the UK or do a lease through salary sacrificing. If you do through salary sacrificing then you do own the car. You pay for the lease payments and maintenance out of pre-tax dollars (ie. your payroll dept deducts the money before working out the tax due on your income). This means your pay less tax. Depending on the number of km's you drive each year you get charged Fringe Benefits Tax by the govt. This reduces the tax saving mentioned above so you need to talk to the company who handles the salary sacrifice lease (aka novated lease) to work out what's best for you.

 

Some companies/govt depts allow you to salary sacrifice out of pre-tax dollars other things like:

- laptops (must be for work purposes)

- phones

- private school fees

- additional super (retirement) payments

and many more....depends on the company...

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Guest mustang

Hi Guys/

 

I know of a couple of companys that can do it for you, one in Brisbane and Melbourne. the company in Brisbane just did one for a nurse who has come over for 18 months to work, she just pays a monthly set price and puts in fuel, with nothing else to pay.

If you send me email i will send you details

Thanks Mark.

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Guest yankee
You can either lease a car just like the UK or do a lease through salary sacrificing. If you do through salary sacrificing then you do own the car. You pay for the lease payments and maintenance out of pre-tax dollars (ie. your payroll dept deducts the money before working out the tax due on your income). This means your pay less tax. Depending on the number of km's you drive each year you get charged Fringe Benefits Tax by the govt. This reduces the tax saving mentioned above so you need to talk to the company who handles the salary sacrifice lease (aka novated lease) to work out what's best for you.

 

Some companies/govt depts allow you to salary sacrifice out of pre-tax dollars other things like:

- laptops (must be for work purposes)

- phones

- private school fees

- additional super (retirement) payments

and many more....depends on the company...

 

Great info, thanks!!! Does this apply to all of the states or just one in particular.! :smile:

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  • 5 weeks later...

I do novated lease, it's 250 bucks per week before tax, so about 200p/w out of my pocket. I get a Lancer Evo fully maintained with fuel, tyres, servicing, everything.

 

However.

 

They do it by dropping your salary, so while my package is the same, my hourly rate is now lower, which means your compulsory super is less, your overtime rate is less, and if you apply for loans they go off the salary value, not the package value. You also have to pay out the remainder at the end of the lease; 13.5% in my case on a 4 year lease, so don't jump in with your eyes closed and hope for the best. If you're not on 40% tax or higher it might actually be more worthwhile getting a finance lease post-tax.

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And watch out for the Fringe Benefits implications - you have to do 25,000km a year to make it worthwhile tax wise. You really do need good advice about it so go to a financial adviser who will be able to tell you whether it is worth it.

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