leasing 4x4's
#1
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Joined: Jul 2006
Location: here there,fluck knows where?
Posts: 7,444
leasing 4x4's
i was talking to a friend yesterday who has just done a rekkie in perth.like me he is in construction and will be self employed out there..
he was advised its best to lease a 4x4 rather than buying it out right..
is this true?
what are the advantages and disadvantages????
thanks..
aston
he was advised its best to lease a 4x4 rather than buying it out right..
is this true?
what are the advantages and disadvantages????
thanks..
aston
#2
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Thread Starter
Joined: Jul 2006
Location: here there,fluck knows where?
Posts: 7,444
Re: leasing 4x4's
i was talking to a friend yesterday who has just done a rekkie in perth.like me he is in construction and will be self employed out there..
he was advised its best to lease a 4x4 rather than buying it out right..
is this true?
what are the advantages and disadvantages????
thanks..
aston
he was advised its best to lease a 4x4 rather than buying it out right..
is this true?
what are the advantages and disadvantages????
thanks..
aston
no one know???
thanks..ast
#3
Re: leasing 4x4's
Depends on the number of k's you do to see the tax advantages. You also have to lease it through a recognised company that the ATO like. Suggest you take a look round this http://www.ato.gov.au/individuals/
Some find its better to get a loan via a mortgage as the leasing company interest rate is alot higher.
Some find its better to get a loan via a mortgage as the leasing company interest rate is alot higher.
#4
Re: leasing 4x4's
i was talking to a friend yesterday who has just done a rekkie in perth.like me he is in construction and will be self employed out there..
he was advised its best to lease a 4x4 rather than buying it out right..
is this true?
what are the advantages and disadvantages????
thanks..
aston
he was advised its best to lease a 4x4 rather than buying it out right..
is this true?
what are the advantages and disadvantages????
thanks..
aston
#5
Re: leasing 4x4's
I looked into leasing a Nissan Navara for the business, the catch here [not sure if it's the same in U.K] is that the buy back at the end of the lease period is not guaranteed. It's subject to the vehicle being inspected for wear & tear. As tradies we tend to abuse our vehicles, we load them up with tools and materials, we get the occasional dent or ding removing scaffolding planks etc. All this is taken into account on the buy back offer. As such the 14k that is supposed to be the lease deposit on your next vehicle is usually short by quite a few thousand. not only do you have to make up the difference you still have to pay your monthly lease fees as well.
In effect your not actually leasing the vehicle here your actually stumping up a large deposit [about 14k] then your buying the vehicle with your next 3 yrs payments only to sell it back to Nissan as a deposit on your next one .
From what I understood of the U.K leasing deals that were available you didn't ever own the vehicle nor were you responsible for servicing etc. here you are still responsible for servicing costs.
This is only my experience of Nissan's Leasing policy, other dealers may offer much better deals.
In effect your not actually leasing the vehicle here your actually stumping up a large deposit [about 14k] then your buying the vehicle with your next 3 yrs payments only to sell it back to Nissan as a deposit on your next one .
From what I understood of the U.K leasing deals that were available you didn't ever own the vehicle nor were you responsible for servicing etc. here you are still responsible for servicing costs.
This is only my experience of Nissan's Leasing policy, other dealers may offer much better deals.
#6
Forum Regular
Joined: Oct 2006
Location: Bull Creek
Posts: 164
Re: leasing 4x4's
It is generally better to lease than to buy on HP, car finance, personal loan, or mortgage based car loan.
Lease repayments are fully tax deductible. If you fund the purchase of the car some other way, those payments are probably not tax deductible. If you have sufficient funds in your company to pay cash for the car, you will still need to pay tax on all the money earned. The cost of the car can be depreciated over a number of years, rather than claimed in the year you bought the car.
See an accountant or financial adviser for specific advice.
Cheers
Bob in Bull Creek
#7
Re: leasing 4x4's
G'day
It is generally better to lease than to buy on HP, car finance, personal loan, or mortgage based car loan.
Lease repayments are fully tax deductible. If you fund the purchase of the car some other way, those payments are probably not tax deductible. If you have sufficient funds in your company to pay cash for the car, you will still need to pay tax on all the money earned. The cost of the car can be depreciated over a number of years, rather than claimed in the year you bought the car.
See an accountant or financial adviser for specific advice.
Cheers
Bob in Bull Creek
It is generally better to lease than to buy on HP, car finance, personal loan, or mortgage based car loan.
Lease repayments are fully tax deductible. If you fund the purchase of the car some other way, those payments are probably not tax deductible. If you have sufficient funds in your company to pay cash for the car, you will still need to pay tax on all the money earned. The cost of the car can be depreciated over a number of years, rather than claimed in the year you bought the car.
See an accountant or financial adviser for specific advice.
Cheers
Bob in Bull Creek
In the UK we (company) always bought our cars and found it cheaper in the long run.
May not be the same here as I don't know many people with a company car.
#8
Forum Regular
Joined: Oct 2006
Location: Bull Creek
Posts: 164
Re: leasing 4x4's
Now let me see? Interest rate 13%, tax 45%, hold on, I'll go borrow a calculator.
#9
Re: leasing 4x4's
That's basically contract hire... Pay one month upfront plus say 35 more for a three year deal and the amount you pay covers all servicing, tires and road tax... You just have to insure it... Give it back after 3 years and start again... Can work for people who don't want the hassle, etc.
#10
Re: leasing 4x4's
See here... ATO
As Bob has said just about everything is deductible based on the % business use you do... So if like me you live 5 minutes drive from work you should be able to claim 90% plus as business mileage... Which gets you 90% plus of the costs of running your car offset against taxable income...
You can claim repairs, maintenance, rego, insurance, fuel, oil, interest on a loan, etc... If you claim the lease payments then you can't claim depreciation which is allowable at 22.5% pa... so work out which is higher...
#11
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Joined: Jul 2006
Location: here there,fluck knows where?
Posts: 7,444
Re: leasing 4x4's
so if you dont mind me asking,im a self employed bricklayer..
ive got £10 k to spend,what should i do,and what should i buy/lease,i have had a navara but the back end had a mind of its own..i was thinking about a nissan xtrail..
i want to tow my works trailer,and maybe a boat one day ,,i hope ,i know i'm a greedy basket..
i would really be grateful of your views ....
ive got £10 k to spend,what should i do,and what should i buy/lease,i have had a navara but the back end had a mind of its own..i was thinking about a nissan xtrail..
i want to tow my works trailer,and maybe a boat one day ,,i hope ,i know i'm a greedy basket..
i would really be grateful of your views ....
Last edited by aston man; Mar 16th 2007 at 9:09 pm.
#12
Re: leasing 4x4's
so if you dont mind me asking,im a self employed bricklayer..
ive got £10 k to spend,what should i do,and what should i buy/lease,i have had a navara but the back end had a mind of its own..i was thinking about a nissan xtrail..
i want to tow my works trailer,and maybe a boat one day ,,i hope ,i know i'm a greedy basket..
i would really be grateful of your views ....
ive got £10 k to spend,what should i do,and what should i buy/lease,i have had a navara but the back end had a mind of its own..i was thinking about a nissan xtrail..
i want to tow my works trailer,and maybe a boat one day ,,i hope ,i know i'm a greedy basket..
i would really be grateful of your views ....
#13
Re: leasing 4x4's
so if you dont mind me asking,im a self employed bricklayer..
ive got £10 k to spend,what should i do,and what should i buy/lease,i have had a navara but the back end had a mind of its own..i was thinking about a nissan xtrail..
i want to tow my works trailer,and maybe a boat one day ,,i hope ,i know i'm a greedy basket..
i would really be grateful of your views ....
ive got £10 k to spend,what should i do,and what should i buy/lease,i have had a navara but the back end had a mind of its own..i was thinking about a nissan xtrail..
i want to tow my works trailer,and maybe a boat one day ,,i hope ,i know i'm a greedy basket..
i would really be grateful of your views ....
If your going to be self employed here your probably better off with a tray back Ute as opposed to a styleside Ute, traybacks have a lot more space for carting sand & cement etc.. Prices for a typical tradies Ute [new] start from about 16k. Nothing fancy just a 2/3 seater Ute with an ally tray in 2 wheel drive.
If you need something 4x4 for launching a boat from the beach once or twice a month I'd buy a really sad old 4X4 for a couple of K. The first car I had was a one car suit everything 4X4 a year old. I did a lot of beach driving and it was just about wrecked when it's life was permanently terminated by a nice lady driver
Have a look at redbook for prices on new and used cars/Utes.
Check out each manufacturers website for deals on leasing some may offer better terms. Also check out the trading post online for private sales.