Novated Lease

Quote:

---

Originally posted by Expat
We have our D90 on novated lease and its working out superb,can claim for just abouyt everything (in reason) we claim on the diesel costs as well.
Have our min limit set at 15,000 Km per year which should easily be achieved.

Cant fault the thing so far seems the way to go....also banking on when our 3 year lease is up in 2007 that Land Rover will have the new defender up for grabs....nah...fat chance..

---

What you can claim is defined as anything that doesn't add value to the vehicle. So a snorkel is out, unless it was on the original deal. But tyres, replacement parts are ok.

Yup....


Call it three years of aggro free motoring...just make sure you stick everything you want on the original deal...bullbar snorkel etc etc etc.
That and cover the Km's that you originally specify [img]style_emoticons/<#EMO_DIR#>/smile.gif[/img]
As a sidenote as well...I think we are in a different tax bracket to all the other normal runabouts as we are able to class this as a commercial motor...will have to check that though.

For the lease itself got a few quotes on the finance beforehand and they were very very competitive.....in the end BMW finance actually beat all comers and even requoted to make sure they did.

Quote:

---

Originally posted by Expat
Yup....


Call it three years of aggro free motoring...just make sure you stick everything you want on the original deal...bullbar snorkel etc etc etc.
That and cover the Km's that you originally specify :)
As a sidenote as well...I think we are in a different tax bracket to all the other normal runabouts as we are able to class this as a commercial motor...will have to check that though.

For the lease itself got a few quotes on the finance beforehand and they were very very competitive.....in the end BMW finance actually beat all comers and even requoted to make sure they did.

---

You're lucky, I had no choice for the finance.

16,000km+ are required really.

Tax bracket; no we're not, that was discussed in some detail on the Overlander forum. It's the vehicle *and* the usage.

I'd recommend it, all things considered.

A few points to consider re Novated Lease
there are 2 types one where you carry the Residual risk ie up to you to sell or release or just pay out. Good point you can have more freedom.
The other where the leasing company takes the vehicle back. In this case a smart leasing company will be very interested in the way the vehicle is maintained etc.

A 45 000 kl per annum lease (inclusive of fuel etc) was qoted to me as virtually same cost as 25000 kl PA lease because of lower FBT component

Danger
ALWAYS make sure you do the right amount of KL per year in relation to the various FBT cut offs 15000 PA 25000 PA 45000 PA if my memory is correct.
Failure to do so will give you a very NASTY bill from your employer to offset the FBT you just cost him.

Great scheme so long as you know the game. Other comments about putting all the good bits on apply (watch you don't go over Luxury Car Tax threshhold.

Releasing at end of term is not always as viable so ask questions of the leasing agent in relation to a re lease and FBT.

nlc.com.au web site can give you estimated quotes. Paly with it and relative KL per annum.

GOLDEN RULE DO the KL you say you will :

Range Rovers are made for Novated Leases - they cost bugger all to buy when they are a few years old and then cost a small fortune to run!!!

My reasoning - the lease amounts are based on the value of the car - so in a RR case low purchase price then low interest amounts and low FBT - providing you go the Km's

THEN this is the best bit - ALL maintenance and running costs are out of your pre tax earnings!!! - so generally you get almost half price fuel and maintenance.

See my logic - buy em cheap and maintan them well!!!

Be careful when getting into rangies & discos as there is a "luxury" bracket at about $57,000-ish where leasing becomes a different story. I had to keep the acessories on my Xtreme to a reasonable splurge rather than an all out so as to avoid this limit.

A good point. It's possible to keep under the lux bracket with a new Defender. Not possible with most other options.

Rolled over 10,000 today after 4 months. Looks like I'll be good for the 25,000 bracket instead of the 16,000 and that's even without the forthcoming Simpson trip!