Thread: Leasing - What will I end up with!?

Originally Posted by Barney2803

I highly doubt whether any packaging company would let you package a classic needing restoration.

Well it depends on your definition of "classic" but I was certainly allowed to have a novated lease in 1999 on a 1984 Mercedes 380SL.

They'll also calculate, or get you to validate the running costs. If the running costs are ridiculous like your spending $10000 on " servicing and repairs" when they'd expect it to be $2000... flashing lights appear on their packaging law "calculators" and the ATO would be very quick to ask you to prove your really eligible for packaging and is the vehicle essentially a work vehicle.

Interestingly it was the salary packaging mob themselves who suggested that packaging an older car that needed "repairs/restoration" was a viable approach.

If you have finance on it, most novated leases have to be on a vehicle upto 3 years old at the beginning of the lease so finance companies or leasing companies wouldnt touch it.

Equally interestingly it is the finance companies that are more difficult to convince than the salary packaging people. The issue is justifying the value of the older vehicle. It is easy and common to roll over leases on vehicles in excess of 5 years old.

I am waiting for someone to show me how it's better for me to buy a new vehicle under finance, than it is to keep my older ones that we owe nothing on, due to tax savings and residuals

Aahh this is another kettle of fish and I agree with you on this.

Also I should add that it is possible all this has been tightened up on but that hasnt been transmitted to me by the salary packaging company.

You lucky bugger...enjoy