Volkswagen Finance

[BlackOctaviaRS]

Hi Guys,

Just wondering if any of you have used Volkswagen Finance to purchase a car.

I'm getting a car allowance at my new job and picking up a new Jetta soon, but I haven't finalised the finance yet, just trying to see what people think is the best option for finance when they get a car allowance.

[woofy]

You need to go see a good accountant. My wife is one, so wasn't a drama for me, but different options are better for different people. It's worth doing right, as it will make a big difference.

I started my current job in 2006 and it involves about 15k of travel locally each year which equates to about 70% business use, for me a hire purchase over 3 or 4 yrs (we have to have a car under 4 yrs old as part of the cond) and keeping a log book to work out business kms for 3mths was the best bang for buck. My car gets paid for fully and I get to pocket some change towards the next car each tax return.

Car finance companies generally are not pleasant, looking around outside will get much better interest rates, I have mine with Bendigo Bank now and pay less each repayment than I did with a car worth $10k less. I previously used GE finance which was arranged by the Mazda dealer, the rate they quoted was competitive, but the comparison rate it worked out to be in the end was 2% higher when it was all signed up, I was not happy.

Novated leasing is less appealing these days as you have to do pretty high kms to lower the FBT, and the income tax brackets shifted up a lot the last few years, so there isn't the benefit as much anymore doing it.

Novated leasing: Everything included, hand back car or get a buyout figure, pre tax savings, but then potential FBT later on.

Buy car outright: Can't claim as much, but still can claim some things.

Lease: Can claim payments as tax deductions (business use part anyway), same as novated lease at end of term, car belongs to finance company.

Hire purchase: Can claim business use from interest, depreciation, car expenses. You own car and at end of period, you need to come up with the balloon rather than just hand the car back. Most places like low/conservative balloons, don't let them make a high one, ie for a Jetta it should be well less than 15k after 3 yrs.

[anthony]

I used Volkswagen finance to purchase my Jetta,and it was a painless experience.

Their rates were the most competitive,and they were plesant to deal with.

[woofy]

I'd imagine they made it pretty easy, but I'm yet to see any car company finance that is competitive....Mazda made it really easy too, even when they looked competitive, they turned out to work out to be something else when tax time came. There was between 1-2% difference between car company finance interest rates with outside sources last time I did a review (late 200.

[Pana]

I used Volkswagen finance to purchase my Jetta,and it was a painless experience.

Their rates were the most competitive,and they were plesant to deal with.

completely agree with anthony. Used VW finance for the R36 and they were great to deal with, interest rates were the same or better than other finance companies like BMW finance (who are also supposed to be very good) and the banks (Mum works for Whichbank and even with an employee facility it was not much better than VW) and setting it up was easy. Would highly recommend them.

[dodgey]

I used Volkswagen Finance to finance my GTI. (Chattel Mortgage) Very easy and painless process.

Would have used them again for the Skoda, but in the end turned out I didn't need to. Was also told by friends that BMW finance was supposedly really good too, but I never had to use them...

[Brycem]

BMW finance is I believe only remaining finance offered in Australia which rebates future interest on early settlement. All the others include the future interest they have lost as a result of early settlement in their settlement figures. At least that is what the Finance manager at Brisbane Prestige told me. They are run by the same outfit that operates Brisbane BMW so it is BMW finance they offer.