Novated lease order to take 6 months

[MovieDude]

I thought I would check out the Novated lease route as the online calculator looked promising but having received the actual quote I am now told that the car will take 6 months. Was I being naive in thinking that it would be less?

[Ideo]

Yes.

It will not shorten the wait. At all..

[FJ Steve]

car doesn't change production times just because you're novating the purchase/ownership/costs

[MovieDude]

I suppose I thought that the lease companies had their own pre-allocated quota from which to pick.

Is going novated just a better way of buying by improving your cash flow or do you really make big savings and is this only for buying new?

[Ideo]

Talk to an accountant. It works for me. Doesn't work for others.

[Serge]

I thought I would check out the Novated lease route as the online calculator looked promising but having received the actual quote I am now told that the car will take 6 months. Was I being naive in thinking that it would be less?

what car were you after and what options?

[andrew7]

Savings are made up front as you will usually get a "corporate" or government fleet discount; then on-going taxing savings basically as the lease and operating expenses are paid out of pretax income (FBT cost is lesser than income tax). I will save about 14k over the life of my 3 yr novated lease. Its a no brainer if you're travelling more than 15,000km p.a.

As to wait for car, 6 months is pretty standard for a GTI with a few options added (though my wait has just reduced to closer to 5 months as my car is to be built in the next few weeks, thank god!)

[MovieDude]

what car were you after and what options?

Golf GTI with parallel park assist, bi-xenons and detroit 18s. Quoted base value for FBT as $43,834

[Serge]

Golf GTI with parallel park assist, bi-xenons and detroit 18s. Quoted base value for FBT as $43,834

Manual or auto, 3 door or 5 door?

[dieterbohlen]

Can someone explain the Novated Lease for me?

My understanding is that you don't own the car in the end, you just rent it and can swap at the end of your contract with the new one. So if you rent Golf for 3 years you'll end up saving a couple of thousands but you don't actually own it. Is that correct?

What is the length of the contract, can it be 1 or 2 years? I know people are usually signing up for 3 years.

The only advantage is that whatever you pay on the car (let's say $1000 a month) will reduce your taxable income (by $12,000 a year in this case). Correct?

Thanks

[FJ Steve]

Can someone explain the Novated Lease for me?

My understanding is that you don't own the car in the end, you just rent it and can swap at the end of your contract with the new one. So if you rent Golf for 3 years you'll end up saving a couple of thousands but you don't actually own it. Is that correct?

What is the length of the contract, can it be 1 or 2 years? I know people are usually signing up for 3 years.

The only advantage is that whatever you pay on the car (let's say $1000 a month) will reduce your taxable income (by $12,000 a year in this case). Correct?

Thanks

Here you go....
What is a Novated Lease? Novated Leasing Examples and Quotes

and for good measure

With a novated car lease agreement, you own the vehicle and have the right to take it with you should you change jobs and, structured correctly, there may be tax advantages with your remuneration package.

[dieterbohlen]

Here you go....
What is a Novated Lease? Novated Leasing Examples and Quotes

and for good measure

Thanks. Can I ask you one more question, what if you are self-employed? Does it work in your favour?

[FJ Steve]

mate...you're asking the wrong people.

Don't you have an accountant/tax agent?

[dieterbohlen]

mate...you're asking the wrong people.

Don't you have an accountant/tax agent?

thanks, will talk to my accountant next time i do my tax.
I just found out about it by reading the forum. Had no idea about this lease...

[PGS_AUS]

You actually probably DON'T want a novated lease if you're self employed. You actually want to look at Commercial Hire Purchase or similar (there's another purchase type thats of benefit to self employed that escapes me at the moment). As pointed out your accountant should be able to explain the differences and advantages of both and any other liabilities they entail. If they can't you need to look at getting another accountant.