I am planning to get a car on novated lease for 2 years. Leasing provider has sent me a quote for $730.13 fortnightly payment.
Cost of car is $43,470. Residual value after 2 yrs is $26.203.20 which includes GST $2,382.11
I am not sure if this deal is good or i would be better off by getting additional loan from my home loan whose interest rate is only 3.42% atm.
Income is $80k a year.
UPDATE: Finance has been approved. I am now waiting on the car price and the updated quote with only fuel expenses. Once, I receive that i will have clear picture of how much i need to spend fortnight and all.
Will update you all.
UPDATE 2: Enquired with bank to get additional loan and i was told that i might have to pay extra $1,000 LMI if i want to top up my loan with extra 40K as loan to asset ratio will be more than 80%. Currently it is at 87%.
More Dilemma on making decision.
UPDATE 3: I am not going with novated lease anymore nor i am buying a car. Instead, I am looking to buy a motor bike now.