New cars and PCP's

[crazmook]

Hi All,

 

I was wondering if anyone knew if personal contract purchase plans (i.e. where you have a new car and pay £200-300 a month or so for 2-3 years and then have the option of paying to keep it or having a new one again) were common in Oz?

 

It seems that it may help reduce our set up costs given that used cars are so expensive in Australia.

 

Thanks for any advice

[Mongrel]

Hi All,

 

I was wondering if anyone knew if personal contract purchase plans (i.e. where you have a new car and pay £200-300 a month or so for 2-3 years and then have the option of paying to keep it or having a new one again) were common in Oz?

 

It seems that it may help reduce our set up costs given that used cars are so expensive in Australia.

 

Thanks for any advice

 

If you had one you would know you need a wedge up front anyhow ,its a rip off any how and with the australian interest rate nah ,.

[Eera]

Novated leases are common and often offered as part of salary packaging, only worthwhile if you're on 40% tax or greater as it comes out of your pre-tax salary.

 

To give you some idea my Evo X is fully serviced with all fuel, tyres, insurance, rego and peripherals like washing and mats and costs me $200 per week after tax, something like $270-ish before tax. I found that company agreements are cheaper than getting your own lease quote.

 

There are downsides like your overtime rate gets penalised which I'll go into if you PM me, they're not for everyone so get some advice from an accountant before you commit yourself to one for 4 years or so.