I have been offered the following novated lease deal for a MY17 Subaru 2.5i Premium including tow pack and rubber mats and delivery to Albury
Residual after 36 months = $18399 excl GST
Annual lease payments = $9288 excl GST
Annual Management / Admin fee = $358
What is the best way to compare prices between providers as they all have different running costs. Do people think this is a good deal?
Does your company provides you with car allowance and fuel card?
I'm not a big fan of novated leases option I rather finance the car by myself, cover all the cost I incur running the car and then claim everything back on tax.
I looked at a novated lease and it worked out to be around 16% interest pa. The consultant wouldn't give me the rate despite asking multiple times. I ended up getting finance else where
most likely cash would work out cheaper. but if you were getting finance, then a novated lease is probably ok. they quoted the residual value without GST, but when you buy it back you will be paying the GST on top of that figure.
I've found the only real benefit of a novated lease is if you use the vehicle for work and can claim it on tax, and also to reduce your taxable income in the first place. Ask your novated lease company about a chattel mortgage if you can prove you use the vehicle for work, it worked better for me but without knowing your situation I can't really suggest anything further
I did quite a few kays on my previous novated leased vehicle and was quite out of pocket with the residual (don't make the mistake that they will take the car off your hands at the end of the lease, they won't, and they'll low ball you with an offer)
The benefit of a novated lease is when you don't use the vehicle for work at all, but it still can be claimed for tax
Chattel mortgage would only be appropriate if OP is GST registered, and as you mentioned using it for business purposes
Also, how much do these go for? You'll owe about $46k incl residual on this novated lease you've quoted
What's the finance interest rate?
Usually you give an estimated kms travelled and they work out an operating costs budget for you but it can be varied - just tell them to reflect in their quotes the operating costs you want to pay. If they aren't breaking down the costs for you then don't use that provider - less transparency usually means hidden fees
There are so many personal financial implications in this purchase. Unless you wish to expose your annual income bracket I suggest you speak to a financial adviser if you can't make the decision yourself.