Anyones Passat on Novated lease?

[cru22z]

Just wondering what's it like with end of lease? Do you guys get a good deal to clear the residual or do you have to pay extra.

[blutopless2]

not sure what you mean here... are you talking about paying it out early?
if you wait till the end you pay the residual + GST. If you want to pay out early then generally you will pay a penalty for it... will depend upon how early you want to pay it off.

[cru22z]

I'm talking about after or on the end of the lease period.
I.e after 5 years.

[ganue]

I just took out a lease, 3 yrs 120000km. Residual of 15k. Projected value of car 20k.

[Darks RS]

5years with residual of $12k.

[MJW]

Mine is thorugh Orix & is a 4 year lease with residual of $19k + GST. Be mindful with the changes to FBT vs klms travelled that it is less of a benefit if you do more than 25,000 klms per year. I do approx this amount & to be honest, the benefits vs the negatives is not proving to be that attractive anymore & I will re-assess with my next car.

Novated Benefits
1. Supposed preferred pricing (I negotiated a better deal on my own)
2. Reduced insurance through my work due to being a novated lease ($600pa)
3. No GST on service, fuel, repairs etc
4. No log books required & can be used for work or personal use
5. All pre-tax funding
6. Save on GST on purchase price

Negatives
1. FBT cost per year will rise from around $8.5k pa to $12.4k based on the 25,000 pa mileage.

If your intended yearly mileage is going to be much less then I am not sure if the novated option is of benefit.

[clip]

From memory my residual around 14k. But that's 4 year lease and I never get to 4 years, so pay a small penalty, never been more than $790, so no biggie. There are a few other ways u can maximise the benefits using this type of financing too that minimises the final payout figure by using your pretax $$$.

[dopey]

5yr lease, $11k residual

Hopefully the car should be worth closer to $20k so it's not too bad

[BlackSuperb]

5yr lease, $11k residual

Hopefully the car should be worth closer to $20k so it's not too bad

Really depends on a number of things as to it being a bargain after 5 years. Whether you are on an Operating Lease or Finance Lease, what your monthly repayments are for 5 years/the interest rate the lease company charges and how many new tyres are included for the duration. (I haven't managed to get my lease company to disclose what the interest rate is after 3 leases so far.) The government takes their share in the form of 20% FBT which lessens the desirability of salary sacrificing a lease as well.

[passatpout]

Mine is thorugh Orix & is a 4 year lease with residual of $19k + GST. Be mindful with the changes to FBT vs klms travelled that it is less of a benefit if you do more than 25,000 klms per year. I do approx this amount & to be honest, the benefits vs the negatives is not proving to be that attractive anymore & I will re-assess with my next car.

Novated Benefits
1. Supposed preferred pricing (I negotiated a better deal on my own)
2. Reduced insurance through my work due to being a novated lease ($600pa)
3. No GST on service, fuel, repairs etc
4. No log books required & can be used for work or personal use
5. All pre-tax funding
6. Save on GST on purchase price

Negatives
1. FBT cost per year will rise from around $8.5k pa to $12.4k based on the 25,000 pa mileage.

If your intended yearly mileage is going to be much less then I am not sure if the novated option is of benefit.

Did you look at the employee contribution method? Where you make a post-tax payment equivalent to theFBT amount, reducing FBT liability to nil? My two employers when I had mine under lease both recommended doing this - although I wouldn't be surprised if this is no longer allowable. I'm not sure, since I bought mine outright about 18 months ago, because I didn't think leases were worth it then, and still don't (other than allowing better finance options when a car is new....).