Car Leasing

Peej · 26-07-2006, 04:18 PM

hey all,

Just a quick question regarding leasing. When you lease a vehicle are most expenses eg fuel and reg etc included in the monthly amount? Just wondering as im looking to aquire a new car for business reasons but will also be looking at using it for personal stuff to.

photn · 26-07-2006, 07:00 PM

hey peej well my car is leased and i pay 131 a week till 08 june. that covers insurance, rego, fuel, the lease itself, and obviously the car. im with mcmillian shakespear. i get a fuel card for the car that i can use at any caltex. and also the cars lease comes off my PRETAX pay. so it decreases the amount of tax i pay. hope thats helpfull dude.

pertuan · 26-07-2006, 07:19 PM

Just be sure to do the maths before you jump into a lease. Its not for everyone.

murcod · 26-07-2006, 08:08 PM

Definitely look into it closely. I researched it a bit and decided it wasn't for me.

You need to do a high number of kms per year or else you end up with a big bill at the end of each year. At least 15000km - I think the next bracket is 21000km which is cheaper again. It works on some percentage of the car's purchased value IIRC?

Also with the tax brackets changing this year the benefit of it is also reduced. Unless you're earning big $$$ and in one of the higher tax brackets (ie. over $60000) then it probably won't be worth it?

Just some points to check into (which I may not have explained too well)- go see a financial advisor/ accountant. ;)

Peej · 26-07-2006, 09:50 PM

Quote:

Originally Posted by photn

hey peej well my car is leased and i pay 131 a week till 08 june. that covers insurance, rego, fuel, the lease itself, and obviously the car. im with mcmillian shakespear. i get a fuel card for the car that i can use at any caltex. and also the cars lease comes off my PRETAX pay. so it decreases the amount of tax i pay. hope thats helpfull dude.

yeah mate that does help... ive looked at the benefits of leasing tax wise and decided its should be fine should i find the right lease for me

Also i'm under 25 and wanting to lease a turbo car, this would obviously impact on the lease monthly with the insurance and all right?

Peej · 26-07-2006, 09:52 PM

Quote:

Originally Posted by murcod

Definitely look into it closely. I researched it a bit and decided it wasn't for me.

You need to do a high number of kms per year or else you end up with a big bill at the end of each year. At least 15000km - I think the next bracket is 21000km which is cheaper again. It works on some percentage of the car's purchased value IIRC?

Also with the tax brackets changing this year the benefit of it is also reduced. Unless you're earning big $$$ and in one of the higher tax brackets (ie. over $60000) then it probably won't be worth it?

Just some points to check into (which I may not have explained too well)- go see a financial advisor/ accountant. ;)

i'm also pretty sure that ill do in excess of 20,000k's a year so thats all good

photn · 26-07-2006, 10:44 PM

Quote:

Originally Posted by Peej

yeah mate that does help... ive looked at the benefits of leasing tax wise and decided its should be fine should i find the right lease for me

Also i'm under 25 and wanting to lease a turbo car, this would obviously impact on the lease monthly with the insurance and all right?

4 sure, as ur under 25 you are high risk especially with the turbo, are you a P or Standard licence holder??? i am required to do 25000km a year, and also it also depends on the tax bracket that you earn. seriously youd prbably spend more on insurance than the car is really worth. but the car is up to you dude. what ever u may want to get. may i ask what it is???

Peej · 27-07-2006, 07:40 AM

Quote:

Originally Posted by photn

4 sure, as ur under 25 you are high risk especially with the turbo, are you a P or Standard licence holder??? i am required to do 25000km a year, and also it also depends on the tax bracket that you earn. seriously youd prbably spend more on insurance than the car is really worth. but the car is up to you dude. what ever u may want to get. may i ask what it is???

Well the tax man is currently taking enough from me and looking at getting an XR5 or a BMW 130i sport. Currently just a on P's, 2.5 years left on those I dont really wanna spend the $$$ on these outright cuz they just deprieciate so fast. What happens if you dont achieve that 25000km?

photn · 27-07-2006, 08:20 AM

YOU A|PAY alot more TAX!!! you will be up for alot more money becasue the vehicle is not getting used as much as the contract states.
yer you should be cool with those cars as they are stockies. not modified, so no probs. the good thing about a lease is that at the end of it, you can either just give the car back, or buy it. and if u give the car back and it sells for more than they are supposed to get back, you get the extra money. or you could buy it for however much the car is supposed to be worth at the end of the lease. up 2 u, as long as the leasing comany get there money.

pertuan · 28-07-2006, 05:40 PM

I've nominated my yearly milage to be 10,000km. I don't really benefit from it but it works like an interest free loan for me. That is to say, tax saved = extra paid beacuse of the lease per year.