Anyones Passat on Novated lease?

[cru22z]

Hi guys,

Just checked my monthly usage report and
Noticed when I filled up on the weekend in BP
Using high flow nozzle to fill up my diesel It showed
.15c Discount. Is this normal? Do u guys get more discount
Filling up on the weekend or using high flow nozzle?

[passatpout]

Sorry, forgot to reply. My FBT component currently comes out of me pre-tax pay so I don't understand the benefit in post tax payment. My total lease payment each month, including budgeted maintenance & FBT is deducted before tax.

Because you can't be taxed twice for the same thing, and if your marginal rate is lower than the FBT rate it saves you the difference. When my car was leased, I had 2 employers. Both approached me about it to save me money, the first did it retrospectively after about 8 months and that gave me a nice little present.

Have a look at some of the online lease calculators, or talk to an accountant. They should be able to tell you if it's worthwhile.

Now, if only laptop computers were still able to be salary sacrificed....

[BlackSuperb]

Now, if only laptop computers were still able to be salary sacrificed....

Depends on your employer. I can do one laptop each FBT year. Currently doing one now.

[MJW]

OK. Now I get it. Thanks.

I even used to salary sacrifice mobile phones. Aaaah, the good old days.

Because you can't be taxed twice for the same thing, and if your marginal rate is lower than the FBT rate it saves you the difference. When my car was leased, I had 2 employers. Both approached me about it to save me money, the first did it retrospectively after about 8 months and that gave me a nice little present.

Have a look at some of the online lease calculators, or talk to an accountant. They should be able to tell you if it's worthwhile.

Now, if only laptop computers were still able to be salary sacrificed....

[passatpout]

Depends on your employer. I can do one laptop each FBT year. Currently doing one now.

Yes, well mine can't understand the need for work laptops, even though we work in some of the remotest parts of the country... So bugger all chance for personal ones...

[Marakai]

Related to this topic:

Does anybody know if you can do down payments on novated leases? This to lower the financed lease amount or to lower the residual, etc.

It may not necessarily make sense, depending on the tax situation, but that's something for an accountant to figure out.

I'm just asking if it's principally possible or whether the leasing companies always insist of a lease based on the fully quoted amount for the vehicle.

Thanks
Mike

[introspekt]

Related to this topic:

Does anybody know if you can do down payments on novated leases? This to lower the financed lease amount or to lower the residual, etc.

It may not necessarily make sense, depending on the tax situation, but that's something for an accountant to figure out.

I'm just asking if it's principally possible or whether the leasing companies always insist of a lease based on the fully quoted amount for the vehicle.

Thanks
Mike

SGFleet advised me that it was not possible to contribute to the capital costs of the car, it's all or nothing. It works out in my favour not to contribute at all however.

However, you can novate a second hand car, or a car you already own. So I guess it might be possible to switch over to novated lease after purchasing via another method, but I think it works on market value. I really don't know

[FSI 220]

Something to think about... I had to face it over the weekend...

My novated lease has an early return guarantee which was reimbursed (up front) by my company (in my case it was 600 odd for the life of the lease)... I had to exercise it today.

I recently changed roles into a bolt on acquisition of a company I worked for for 20 plus years, new job, new boss, ultimatum passed down, a line drawn through 3 heads, one was mine...

Bounced on Friday... I had to make a decision... we own a 4yo Kluger KX-S AWD that I bought out (my old lease) for $17.9k in four years it will be worth around $15 000 ... or sell that and buy out my brand new lease for $58k in four years it may be worth $28-30k. The Passat is too small for our primary car, no towbar, blah blah... So... loose 2k in the car that fits the family? or lose 20k in a car that I fancy?

Because i am so anal with the care of the car, there were no "wear and tear" costs, so it cost me around $500 bucks (some excess Km and 4 days of "Hire") to walk away... compare that to if I had to try and sell a six month old MY12 if I had bought it outright... I would hate to think...

Anyway... food for thought... better go update my sig... sigh

[Riker]

Isn't that just a pain in the a*se...... Sorry to hear it mate but hopefully it opens the door for you to step behind the wheel of another VW at some point soon....

Something to think about... I had to face it over the weekend...

My novated lease has an early return guarantee which was reimbursed (up front) by my company (in my case it was 600 odd for the life of the lease)... I had to exercise it today.

I recently changed roles into a bolt on acquisition of a company I worked for for 20 plus years, new job, new boss, ultimatum passed down, a line drawn through 3 heads, one was mine...

Bounced on Friday... I had to make a decision... we own a 4yo Kluger KX-S AWD that I bought out (my old lease) for $17.9k in four years it will be worth around $15 000 ... or sell that and buy out my brand new lease for $58k in four years it may be worth $28-30k. The Passat is too small for our primary car, no towbar, blah blah... So... loose 2k in the car that fits the family? or lose 20k in a car that I fancy?

Because i am so anal with the care of the car, there were no "wear and tear" costs, so it cost me around $500 bucks (some excess Km and 4 days of "Hire") to walk away... compare that to if I had to try and sell a six month old MY12 if I had bought it outright... I would hate to think...

Anyway... food for thought... better go update my sig... sigh

[clip]

I recently changed roles into a bolt on acquisition of a company I worked for for 20 plus years, new job, new boss, ultimatum passed down, a line drawn through 3 heads, one was mine...

sorry to hear that mate, not good after all those years of loyality! Just goes to show, at the end of the day it all comes down to the bean counters.

[clip]

Does anybody know if you can do down payments on novated leases? This to lower the financed lease amount or to lower the residual, etc.

No, never heard of it anyway. I can purchase a second hand car, but it can't be greater than 5 years old at the end of the lease (so I could buy a 2 year old car and lease it for 3 years). At least that's my understanding when I checked in 2010.

[wind]

. . . a line drawn through 3 heads, one was mine...

Sorry to hear that you got the short end of the stick - big time bummer!

I hope everything turns out OK for you.

[jsoto2005]

I opened up an NLC account on my Polo 77tsi and i find the whole idea great, its a privilege considering not many companies would accommodate this kind of program. The lease repayments are much cheaper than me taking out a loan and paying the vehicle off, and if your worried about "not owning the car" like so many will argue, then your not seeing the bigger picture, firstly ppl that take out a loan for a car do not "own" their cars anyways its the banks asset really, just under your name, and ive owned 8 cars in 7 years and not once have i made any money off of one, why? because owning a car these days is just a depreciating asset, you kno why celebrities have so much money? (larger scale here) its because they dont own these lamborghinis and maybachs, they lease them, i could easily afford my polo outright but it aint worth owning a car youll just lose money in the resale. NLC have been more than reasonable with the petrol/insurance/rego/servicing package and you save money from all of them, and at the end of the day you can trade your car back in and dust your hands and you will still have the 20k+ in your pocket that you were gonna spend on the car in the first place. This is my 2c, ive had a good experience so far, made so much sense to me.

[Marakai]

Sorry for waking up this old thread, but it seemed like the appropriate place instead of creating yet another new thread:

Has anybody done a novated lease while also making use of ATO tax variations for the purpose of investment properties and loss offsets? Does one affect the other? Does it get really messy? No impact? A Bad Thing? Impossible?

Wife and I are doing it now because we don't believe in interest-free loans to the government, which puts a nice chunk of $$$ in our pockets every month instead of at the end of the tax year.

I've passed the question to our accountant as well, but would be curious if others can relate any experiences.

Thanks
Mike

[FSI 220]

Related to this topic:

Does anybody know if you can do down payments on novated leases? This to lower the financed lease amount or to lower the residual, etc.

It may not necessarily make sense, depending on the tax situation, but that's something for an accountant to figure out.

I'm just asking if it's principally possible or whether the leasing companies always insist of a lease based on the fully quoted amount for the vehicle.

Thanks
Mike

Depend on the leasing company, in mine I could put in a percentage of capital... cant remember the exact number, somewhere between 5 - 20%... and second hand was OK as long as it was less than 7yo and less than xxx Km at the end of the lease...