pricing for the 150

[ntp Addicted PP Member Find all posts View Profile Close ntp]

Re: pricing for the 150

Had three dealers fighting it out for the sale. Started at $76000!!

76k for a GXL, someone was kidding themselves!!

What's he asking? 76k for a GXL...Tell him he's dreaming!

[Richoson Avid PP Poster! Find all posts View Profile Close Richoson]

Re: pricing for the 150

Hi Croozer

A novated lease is good if you structure it correctly. You need to consider the amount of k's you do as this affects the FBT, also how much you can claim pre tax and what your post tax cost will be. Also are you considering paying out the ballon, if so go for the lowest residual you can get, this is also affected by the k's per year.

Finally if you plan on accessories get these on the car. With a novated lease once that is established any further accessories are at your personal cost and very difficult to claim back off tax. Here's a tip, try and get the lease company to keep the car from the dealer under the luxury car tax and make a separate payment to ARB/TJM or your favoured aftermarket supplier, you will save thousands of dollars!!

Regards, Richo.

[Croozer Junior Member Find all posts View Profile Close Croozer]

Re: pricing for the 150

Thanks for the response so far. Interestingly, I figured the bigger the balloon payment the better. Just goes to show my mathematical abilities! I'll be drivinng 25,000kms + per annum so I'll be chewing up a reasonable amount of kms, hence I figured a lease may work for me (I'm also trying to reduce my tax). From the responses, it appears the lower the baloon payment the better (I realise this is not financial advice so no one need panic!). Why is this the case? It appears, however, that I do not get the benefit of a GST deduction on the price of the vehicle, rather the lease company does. Is this correct?

[ntp Addicted PP Member Find all posts View Profile Close ntp]

Re: pricing for the 150

From the responses, it appears the lower the baloon payment the better (I realise this is not financial advice so no one need panic!). Why is this the case?

Because this is the final payment you will need to make to 'purchase' the vehicle at the end of the lease. If you buy the car (payout the balloon payment) and then manage to sell the vehicle for a higher price - you keep the difference. So the lower the balloon payment the better!

[D4D Addicted PP Member Find all posts View Profile Close D4D]

Re: pricing for the 150

From the responses, it appears the lower the baloon payment the better (I realise this is not financial advice so no one need panic!). Why is this the case?

Because this is the final payment you will need to make to 'purchase' the vehicle at the end of the lease. If you buy the car (payout the balloon payment) and then manage to sell the vehicle for a higher price - you keep the difference. So the lower the balloon payment the better!

You still have to pay tax on any difference.

[Richoson Avid PP Poster! Find all posts View Profile Close Richoson]

Re: pricing for the 150

Selling the car, be careful about what the invoice price is as that is another way to minimise tax as well.

[nickchap Member Find all posts View Profile Close nickchap]

Re: pricing for the 150

Yep the tax man will get you :twisted:
I had a Hilux that I sold. Tax value $5000- sold it for $13000-
The tax man wanted his share of the $8000 :cry:

Nick

[ride_the_slide Lurker Find all posts View Profile Close ride_the_slide]

Re: pricing for the 150

FYI...

The inlaws bought a GXL Diesel auto bout 3-4 months ago. paid $60K (thanks to government grant) as they use it with the buisness..

they around 8.8 to 9L/100 when they drive down to Brisbane to visit. and up around 11L/100 when towing horse float full of Alpacas...

However.. I haven't heard what performance in the fun stuff is like. Will let you know more when I do.

Josh

[Croozer Junior Member Find all posts View Profile Close Croozer]

Re: pricing for the 150

For clarification, do I get the advantage of discounting the GST off the rrp of the vehicle or is this claimed later by the leasing company? Ie: I still pay full price on the vehicle?

[Corigator Avid PP Poster! Find all posts View Profile Close Corigator]

Re: pricing for the 150

On my deal, you pay GST on the sale price when you sell it.

[benjl Junior Member Find all posts View Profile Close benjl]

Re: pricing for the 150

I've been working on the novated lease option and a few other options. Obviously individual circumstances are most important..
1. Usually the novated lease statements are complicated at the best of times and deliberately don't allow easy comparison.
2. Add up the balloon payment + the annual outlay for the duration (3 yrs?) .. does this total number make sense to you?
3. A brand new car .. do you need to include all the maintenace costs eg. why pay for new tyres in year 1/2 when you may not need newies until year 3.
4. Toyota have fixed price servicing built in to the purchase price (I didnt know this until a few days ago) - this makes the cost predictable.
5. Look out for other stuff that may not interest you - I had a $250 annual carbon offset .. choice magazine say most of these are ineffective money grabs.
6. You MUST lease the total value of the vehicle and you must include major vehicle modifications in that value under the lease conditions.. Ick!
7. Whats the finance rate and is it competitive?
8. Whats the petrol cost of meeting the desired KM's ??
9. The deal structures are probably great for people who want to perpetually upgrade their vehicle every few years.. funny I remember my dad telling me that 20 years ago.

My choice in the end was to use early home loan repayments, but increase my repayments to match if it was a car loan amount (at a far better rate). That way I could decrease the liability with my trade-in + savings and do away with some of the other rubbish. My work give me a fuel card, so that decrease the lease benefit.

Hope this helps .. not sure if I just doubled up another forum.

Ben

[starbuck76 Member Find all posts View Profile Close starbuck76]

Re: pricing for the 150

Went down the path of novated leasing and after some quick calculations turned around and ran the other way. It was far cheaper (for my circumstances) to finance myself by extending the home loan than a lease arrangement. Over the same time period I pay $240 month less and don't have to pay a 15k payment at the end. The tax advantage was only $900 per year and I don't have to do 30k kms a year (if I don't want to). I also have the advantage of making lump sum payments, if I have any money left after modding up the VX.
However, used the quote from the leasing company to work out what the vehicle price was and then took that to some dealers to see if they could match it...... voila.

You have to read the lease carefully, do the math and see what works best for you.

[Zenra Lurker Find all posts View Profile Close Zenra]

Re: pricing for the 150

Comparing novated leases is very tricky, most finance\fleet providers make comparisons near impossible.

I always recommend our clients to ask for the following information, inclusive of GST. Don't assume that they are incl or excl, make sure its noted.
Purchase price, Residual value, Monthly finance payments and if the term is structured.

The rest of a novated lease, ie running costs, its your money anyway... so you can always ask for the values to be adjusted.
But provision too high - higher month to month impact, the excess money has to be taxed via payroll to put it back in your wallet.
Or provision too low - may not be enough in the 'bucket' to allow for your long term expenses like tyres and servicing.

So the critical point is the finance is established correctly, the rest is based on how you drive and how you spend.

starbuck, you might be right... however did you think about taking the novation for the 3 years, at the $15k balloon, financing into home loan.
You would have the $900pa tax saving and all the expenditure provisioned and at the residual point, move it into the home loan, no worse off.
However, right now, you are paying for all of the car costs directly from your wallet, I.e. earn $157, pay tax (30%) $47.10, to have $110 in your wallet for a service... or have a novated lease where the $110 service, you don't pay the GST so costs $100 and most of that is paid pretax AND not from your wallet.

[Zenra Lurker Find all posts View Profile Close Zenra]

Re: pricing for the 150

Yep the tax man will get you :twisted:
I had a Hilux that I sold. Tax value $5000- sold it for $13000-
The tax man wanted his share of the $8000 :cry:

Aww bugger, yup one of the other choices between a novation and other ways of financing. (HP/home loans etc etc)

[Croozer Junior Member Find all posts View Profile Close Croozer]

Re: pricing for the 150

Well, after a little more digging it appears that a novated lease may well work for my circumstances. It certainly works out far cheaper than getting a personal loan and even works out to be a little more cost effective than purchasing the vehicle outright with cash (as it is inclusive all of running costs). Unfortunately, with the lease company used by my employer I have no choice about the size of the residual which is set about 47%, but I can live with that. All in all, it will cost me about $400 per fortnight from my takehome pay over a three year lease. Thats not bad! Considering that is inclusive of all maintainence costs, fuel, insurance etc for a GXL T/D auto. Not to mention through discounting the purchase price of the Prado is just a smidgen over $56k on road. Not sure I can haggle that any lower but I'll give it my best shot with a couple of dealerships! :P

Now to sell it to the boss who has her heart set on a Subaru Outback...