Leasing a 2nd Hand BF Ghia

Iphido · 04-02-2007, 10:20 PM

Is leasing a 2nd hand car worth it..

Im thinking of leasing a 2nd hand 2005 BF Ghia. I belive you can lease a vechical up to 3 years old. Im playing with a few online estimations and the results seem marginal for a salary sacrific.

Given these are now approaching $25,000 now they seem like an excellent car for me and my salary ($50k). I would do 25,000 km a year, usually averaging over 500km a week. I though being in this lower FBT group would make it a easy win for lease? Am I missing something?

davocol · 05-02-2007, 08:28 AM

I have been looking at possibly leasing a simliar car, since the tax rates changed last year it is now really only beneficial in my opinion if you get a massive fleet discount on a new car or you earn over $75,000 which is taxed at 40 cents in the dollar. Last year it was 40 cents for $63,000-$95,000. The other thing with a buying a 2nd hand vehicle through a leasing company is more than likely it will have to be through a dealer and you cannot modify it. If you could get that car for about 800-9000 per month gross with everything included petrol etc. I think it would be worth it. Anything more and you would probably be better off buying it privately and working out your own finances.

GXL078 · 05-02-2007, 09:13 AM

You certainly CAN modify a leased car. It is YOUR car, registered in YOUR name. Your only responsibility to the finance company is to meet the lease payments and residual. If you need to get out early you will get ripped off as you have to pay GST on the remaining lease payments AND the residual. $3000 in my case. I lost $5K when I sold it.

Smoke Pursuit · 05-02-2007, 09:23 AM

Dunno about modifying a Leased car, its actually the finance companys asset, all your doing basically is hiring it.

GXL078 · 05-02-2007, 09:30 AM

Quote:

Originally Posted by LSTerritoryGhia

Dunno about modifying a Leased car, its actually the finance companys asset, all your doing basically is hiring it.

Not if its a NOVATED lease. I was told I could do what I liked as long as I met the residual at the end.

Rodp · 05-02-2007, 09:39 AM

Quote:

Originally Posted by Iphido

Is leasing a 2nd hand car worth it..

Im thinking of leasing a 2nd hand 2005 BF Ghia. I belive you can lease a vechical up to 3 years old. Im playing with a few online estimations and the results seem marginal for a salary sacrific.

Given these are now approaching $25,000 now they seem like an excellent car for me and my salary ($50k). I would do 25,000 km a year, usually averaging over 500km a week. I though being in this lower FBT group would make it a easy win for lease? Am I missing something?

Biggest problem with the Ghia is that they don't seem to retain their value too well, so if you decide to go with it make sure that you don't have a large residual as you'll end up forking over a wad of cash because its sale value will be through the floor.

I got caught out with my EF Ghia. Bought for $35k on a CHP and was worth $4500 in 3 years. After that episode I vowed never to buy another Ghia.

davocol · 05-02-2007, 10:23 AM

Good luck with modifying the car in a novated lease agreement, in most instances the lease agreement also covers insurance. The other point is, the novated lease company calculates an amount you will spend on tyres, fuel etc. I am not too sure how well it would go down with the lease company if you would to put 20" wheels and a blower on your lease car, probably doubling both your tyre expenditure and fuel expenditure. It would also make your insruance void, I am sure you could modify it though within reason, different floor mats, air freshener etc. If your lease company has said you can modifiy it Good Luck to you.