How mush? what is it a Rnage Rover Sport?

My Civic Type R was around 1200 per month all in.....

Is that what you pay, or is that the pre-tax payment? (I really don't understand how it works)

In any case my car is probably around $4,000 more than yours and I only pay $600pm.

Insurance is about $450, Petrol $280 per month, so unless the annual service is $3000 I just can't see the benefit in leasing.

https://drivers.leaseplan.com.au/dri...ability/ac.jsp

I've just done a deal with the company I've just joined.

In return for giving up a salary of $10,000 per year, which would be about $6,000 in my pocket per year, I get a brand new Mini Cooper S with decent options, and all insurance, maintenance, tax etc and fuel included. Annual mileage is not stated either since they reckon on about 15,000-20,000k's a year.

Fuel is not going to get any cheaper so may as well have some fun and let someones else pay for it - ok, I'm paying for it, but the value to me per year for this car is about $17,500.

Ok, the alternative is to buy an old cheap car and thus save loads, but it's nice ot have a car and not have to worry about it...

Let me give you a idea of how it works.

Based on a 58k car

Car value 58,0000
less GSt 52,728
KM traveled per year 30,000k
Residual % 25%
Residual Amount 14,000

These amount dont include GST Tax credits of 1,448 per year.

So the above means

Total cost for package is 875 per fortnight, net saving 198.58 per fortnight

Based on a Gross of 86,000 the effect on take home is 677.25


toatl running costs

Rego 17
servicing 41
Fuel 169
tyres 20
RACQ 3
Copm Ins 33
Sundray 13
lease 561

So on a take home wage of 2961 per fortnight the Net Benefit is 198.58 per fortnight.

So its easy to work out if this is going to be any good,

Take the cost of the car from a dealer, calculate your payments over 60 months, then add that to the vechile running expense that you would have any way.

What is the interest rate if you want to buy a new car on a 36 or 48 months financing plan? Let's say the tag price is 26k.

Thanks

I got 6.9% through BMW Finance through the dealer. (Not a BMW though). Make sure you shop around and use some brokers as well, then get the dealers to match or beat the brokers rate.

Also be careful about early termination fees (Esanda are bad for these I think)

I financed $43,500 for 5 years, with 50% residual, 6.9% interest and $593 a month. ($2000 initial deposit)

And that was with no credit history, been in the country 4 months.

Thanks for the info. I will be arriving in Melbourne in two months and I am trying to make some plans regarding buying a new/used car. I am coming from Canada and here you can get a new car financed at 0% for 60 months if it is an american car, or 1.9-2.9% if it is a japanese one... totally different story. Probably that is why the nord american auto industry crashed )

We rented from nobirds.com.au for the first 4 weeks, then bought an old nail.

How does the residual work?

It's supposed to be a balloon/final payment - can either pay it, refinance, sell the care/trade in etc

As cars devalue so slowly here, especially 'premium' models there is far risk risk that the UK

Yes that's what I thought - so am I right in thinking that you can't really compare HP with leasing because at the end of HP you own the car outright. At the end of the leasing period you still have to pay the leasing company the residual? And who determines what the residual is - is it negotiable?

Yes it does but it depends on your mileage and the vehicle your running. My novated lease is around that. Mind you I don't pay it as such and its really convenient and very tax efficient.


Thats really cheap, whats included at that rate?

If you are novating which it sounds like you are as its salary sacrifice through your company, then mileage is VERY important as its can dramatically affect any FBT liability. Make sure you have checked this.

50% residual after 5 years I reckon could leave you out of pocket. Depends on car, mileage etc but sounds quite ambitious. I'm on 50% after 3 years which should be on the generous side.

I agree, thats a lot, I'm on about 22% after 5 years. Which I thought was quite realistic. looking at current model 5 year old cars, they are selling for average of 27% - 30%