Car lease costs

[Belu]

Hi all,

Have an employee who wants to package a car into package and I am trying to work out how much it would cost.

i.e. a $28k second hand car, lease for 2 years. I am guessing around $10k but has anyone got any information or references please? I tried to google but couldnt come up with anything.

Cheers

Ben

 

[sanj]

Hi all,

Have an employee who wants to package a car into package and I am trying to work out how much it would cost.

i.e. a $28k second hand car, lease for 2 years. I am guessing around $10k but has anyone got any information or references please? I tried to google but couldnt come up with anything.

Cheers

Ben

i recently bought a car under the company through a chattel mortgage

ive selected a 3 year loan of $36k with balloon of 20k (i wanted the balloon to be well under what i would sell the car for if i had to after 3 years) and it is costing me $600/month.

not sure if that is any help but this is my only experience of doing so plenty of car repayment calculators online

 

[CHam]

Hi all,

Have an employee who wants to package a car into package and I am trying to work out how much it would cost.

i.e. a $28k second hand car, lease for 2 years. I am guessing around $10k but has anyone got any information or references please? I tried to google but couldnt come up with anything.

Cheers

Ben

Hi Ben,

If you are talking about a lease of 2 years with 0% residual the principal only will be $14k per year. Then you need to include registration, insurance, fuel, repair and maintenance, etc.

A standard car allowance is around $16-$17k per annum for an employee to lease a vehicle for work purposes (eg. sales - if that is what you are looking at).

 

[johnkerr]

Novated lease confusion

Sorry to semi-hijack this thread but did you end up deciding who to go with? I'm in a similiar situation but I'm a bit out of my depth. I've been looking at this novated lease calculator on their site

I currently have one of these short term car leases with them and there have been no issues but I'm finding it very hard to get information on the novated lease for an employee. I guess it doesn't make a difference who we go with but I'd like to stay dealing with the same company.

Does it technically operate the same as the lease I listed except the employee receives the tax benefits? Anyone with experience or advice on this would be greatly appreciated.

Thank you!

 

[Swannies]

Hi all,

Have an employee who wants to package a car into package and I am trying to work out how much it would cost.

i.e. a $28k second hand car, lease for 2 years. I am guessing around $10k but has anyone got any information or references please? I tried to google but couldnt come up with anything.

Cheers

Ben

Hey Belu,

I'm new here and was browsing the forum thought I'd reply to this as it is in my field.

When you say package the car does the employee have a current novated lease in place and would like to transfer it over?
or
Is the vehicle purchased/being purchased in the companys name?

Feel free to PM me and I can do some numbers for you on either scenario

Cheers,
Ian

 

[Swannies]

Sorry to semi-hijack this thread but did you end up deciding who to go with? I'm in a similiar situation but I'm a bit out of my depth. I've been looking at this novated lease calculator on their site

I currently have one of these short term car leases with them and there have been no issues but I'm finding it very hard to get information on the novated lease for an employee. I guess it doesn't make a difference who we go with but I'd like to stay dealing with the same company.

Does it technically operate the same as the lease I listed except the employee receives the tax benefits? Anyone with experience or advice on this would be greatly appreciated.

Thank you!

John,
You are currently running an operating lease which is usually taken out in the employers name. A novated lease is taken out in the employees name so yes you are right in that under this arrangement the employee receives the tax saving.

Under the operating lease there is one monthly payment which covers everything except your fuel and insurance. This monthly payment can be claimed as a business expense at the company tax rate the advantage here is the vehicle is off the balance sheet and only the monthly rental is reported. There is also no residual you simply hand the car back in at the end of the agreed term.

A novated lease is taken out in the employees name and works much the same way however all running costs are included and taken Pre tax (including fuel and insurance). There is a residual at the end which can be paid out, refinanced or you can trade the vehicle and use these funds to pay out the car keeping any surplus tax free.

Cheers,
Ian

 

[coastymike]

You will need to factor in the FBT costs as part of the salary package

 

[Ergophobia]

a novated lease is the simplest imo


i use maxxia, but there are many others

 

[johnkerr]

Thanks Ian, very helpful.

 

[johnkerr]

Sorry to semi-hijack this thread but did you end up deciding who to go with? I'm in a similiar situation but I'm a bit out of my depth. I've been looking at this novated lease calculator on their site

I currently have one of these short term car leases with them and there have been no issues but I'm finding it very hard to get information on the novated lease for an employee. I guess it doesn't make a difference who we go with but I'd like to stay dealing with the same company.

Does it technically operate the same as the lease I listed except the employee receives the tax benefits? Anyone with experience or advice on this would be greatly appreciated.

Thank you!

Ended up making the transition so far seems good. Personally I think negative gearing is a better tax solution but for this employee it worked quite well. Had to feel our way through it a bit though.