asher

Hi we are looking into buying a new 4x4 and can't really afford the Pajero we want, but have been told that salary sacrifice is a good way to do this and save money

anyone got any thoughts/experience on this?

goldchoccycoin

It can be a good move - as you pay for the car (and associated costs - fuel, servicing, rego etc) from your pay pre-tax. Therefore, your taxable income is less so you pay less tax overall.

It would likely be worth running the numbers through a calculator to see what impact it will have on your take home pay and if you can afford it even with SS. Here: https://www.remserv.com.au/novated-leasing

Personally, I usually buy second hand (1 or 2 years old) as they are significantly cheaper but that's just me!

Good luck.

asher

thanks for that will run the numbers through that

Jon77

Been here over 2 years and still haven't gotten around to buying a car!

We use 'goget' which has car pods all over Sydney, works well for us but apprechiate it doesn't for everyone.

RedDragon2008

If the tax benefit is the difference between making it affordable or not

Walk away

As recently shown tax changes can be made on a whim

quoll

We talked to our tax agent when we were thinking of buying a new car a while back and it wasn't worth it for us as we wouldn't be doing the miles - he suggested we would actually be better taking a personal loan to buy the car and sacrificing against that. We didn't, in the end, we bought the car outright and sacrificed into super IIRC. Talk to an independent financial advisor who will crunch the numbers for you.

Tramps_mate

Would say the same. If you can't afford it before then you can't afford it after. If things are that tight you shouldn't be buying a new car as expensive as a Pajero..