Veichle Leasing Options

[Spudly]

Just after opinions from people who have done this..

Been looking for ways to save money, as being out in the sticks its quite expensive to drive from here to batemans or sydney. Roughly costing over $400 a trip in Diesel alone. Diesel here has just hit $2 a litre.......

Through work I can get a Leased veichle, with Tax benifis and one came up this week that interested me...

A 2005 Comodore Berlina, for $350 a month....over 3 years... Includes Fuel, Insurance, Tyres and Servicing... That is Cheaper than One trip to sydney and I generally do 2 trips a month... Seems like a good idea to me?

[Jumpus GooDarus]

Well if you only fill your fuel tank 1/2 way you'll save $200 on each trip & that's a good saving

Rumpus you ninny, all leasing is , another form of finance & realistically there's no Tax Benefits @ all

You ger to depreciate the vehecle by 20 % each year that's it but the interest is tax deductable furthermore @ the end on your contract you get lumped with a residual & if you've got a smarty pants car dealer who's done the payment figures for you.

Then you can bet your short & curlies he's left a much higher residual on the contract which means when the 3 years is up [by rge way lease agreements were allways 4 years not 3 years] you'll owe virtually just as much on the car as when you purchased it.

And if you're not going to get rid of the landcruiser ??

Well your not very bright having 2 cars trying to save $$$$'s

[quintrex101]

yes there a nice car as well rummy, if im not wrong the commodore berlina has leather seats

[kkw]

yes you are wrong twit top. Well, partly anyway. Leather seats are an optional extra. I have a Berlina and it doesn't have leather. The Calais does.

[Spudly]

Its all done through our company and through salery Sacrificing, Im not good wih this stuff, so thats why I asked Jumps..

I dont wanna not have a 4x4.. but its killing me the costs of driving everywhere!

Been looking at the Gas injection systems for the crusier.. Might go and see em and take a ride in a car..

[Jumpus GooDarus]

Yeah well the talk is easy but the crunch is the payments

Add to those the extra cost of rego & insurance + maitanence

There's no way you'll be better off.

I was a smarty pants & would never take out finance on cars & toys if I had a good year I'd write out a check own the car etc & write it off as stock that way I got full tax benefits for that financial year.

And since there were no payments there was no burden on the years that were a bit slow.

I laugh @ those whose think leasing is a good idea including stupid accountants they live their lives on credit with no consideration to the real slow years

[Spudly]

rego, insurance and all servicing inc. tyres is included in the monthly payment..

[Spudly]

not disagreeing with you jumpy.. My Uncle is pretty good withthis type of thing, and he says very similar to you...

Im trying to find ways to drop my fuel bill....


Just imagine being stuck in the middle of no where with nothing to do and having to drive 10 hours and spend $400 just to get to the water!!

[oz man]

2 simple question what is the residual and you say 3 years is that a complete ownership. as you are going back in years for a lease car so the mileage must be under 100,000 otherwise most leasing companies will not except.
But you are saying it,s a salary sacrifice and you are paying $350.00 so what is the amount you are sacrificing in wages also as this sounds expensive to me.
We sell our company vehicles after 3 years to whoever will pay the depreciated price plus 10%.

[Spudly]

$30000 Large 4x4 at 30000kms/year, you could save $7,526.87 per year.

Total savings on vehicle: $8,617.74 Over the lease term of 36 months.
Total savings on running costs: $13,962.87 Over the lease term of 36 months.
Net annual saving: $7,526.87
Net weekly saving: $144.35

Monthly Payments $656.99

Residule Value: $13,500.00

Just an example...

So the residule valuve would take $375 a month put in a savings account to buy veichle at end of term..

657 +375 = $1032 a month....

Currently im Paying..

Loan, $1000 a month
Insurance and Rego $125 a month
Fuel $800 a month
Tyres $125 month

All up = $2050 a month

[A pirate]

my car is leased under this scheme the big catch point do you do the km's? and are you in the highest tax bracket?
If you answered yes then look for a car that holds its value.
When i looked into it falcons and commodores are worth next to nothing after 3 years vs the buy out fee (where you make some $$ back is at the end of the lease buy the car for the residual and then sell it privately and you should walk away with 6-12K tax free)

Im also leasing my car over 4 yrs as its a smaller fortnightly amount and a smaller residual at the end.

it all looks good on paper but i did shit myself when i first saw the deductions from my pay slip, you will not have as much $$ going into you bank account in the start, it only starts work its self out when you no longer need to spend $$ to run the car. eg fortnightly pay of $1700 into you account then lease plan starts and now only $1200 is gong into you account.

This post has been edited by A pirate: Jun 8 2008, 08:55 PM

[Christos]

I think that there is two people that you would need to talk to. One would be the payroll person to ensure that your figures are correct and the second person would be your accountant. Then you can made the decision based on that.

[jack]

have a look at running your diesel on used oil from your local fish and chips shop.
There is a guy in the UK who pays 20 cents excise a liter and filters the used oil from the local fish and chips shop.

The excise is to make it legal in UK as you are not allowed to run your car on anything that has not had excise paid on it (talking about highway robbery) and probably the same goes here
Your car may actually run better and behind you people will be having the smell of a fish and chip shop

Jack

[Spudly]

I know people who do it jack and i couldnt be bothered, besides, in a car like mine, id prefer having betteer quality fuel there for all the miles i do!

I am looking at Gas injection though...

[jack]

I know people who do it jack and i couldnt be bothered, besides, in a car like mine, id prefer having betteer quality fuel there for all the miles i do!

I am looking at Gas injection though...

Better quality from whose perspective? I'm sure the government and fuel companies will tell you that but what do tests say?

Diesels are pretty indestructible engines and when I remember correctly when this German guy invented his first diesel engine vegetable oil was used to run it.

Do the people you know that do this have any issues?? even if you mix it 50:50 you could save a bundle.

But we have two petrol cars doing only very limited km so I have not looked into it in more detail (we drive so little that even LPG may not be a viable option)
IN Holland I used to drive a diesel but diesel there is cheaper than petrol and my boss picked up the tab for all my fuel(company car:-))


Jack

[Spudly]

it takes alot of work to make the bio deisel.. It also makes your car stink like a chip shop..

Quality for deisel, here is the same grade as Europe, I forget the exact class but 5 rings a bell.. Woolworths and coles used to get away with selling lower quality deisel because they were not classed the same as servo's but they have been snapped into line..

Its VERY easy to tell when you get a bad batch of deisel also.. Luckily though, Deisels have better Fuel and water seperators than petrols to compensate this.

Gas injection would be my best option, either that or turbo...

Gas injection injects LPG into the Engine at 1/3 to deisel, and increases power and econemy by 20% and increases engine life by running cooler and giving a much higher fuel burn rate than straight deisel.

[jack]

Gas injection injects LPG into the Engine at 1/3 to deisel, and increases power and econemy by 20% and increases engine life by running cooler and giving a much higher fuel burn rate than straight deisel.

Weird, I always thought running on LPG would be running your engine hotter.

That's why in when in Holland they started converting cars to LPG and the japanese cars came out with these lightweight alloy engines they had issues because of that.

Ah well learn something every day :-)


Jack

[Spudly]

Deisel burns hot because of the high compression and incomplete fuel burn (thus why they spit dirty soot out the back end)

The LPG helps the combustion rate (95% instead of 75%)

Best thing is, if you run out of Gas, the car will run as normal on Deisel..