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Buying a new car - Can someone explain leasing?

Discussion in 'Starting your journey' started by Anon, Jul 20, 2012.

  1. Anon

    Anon Member

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    I was hoping to get some help about this one. I've been wanting to upgrade my car and get something a fair bit better - Maxing at around $50k range. I had someone in bypass mention for me to look into leasing. Has anyone here not bought a new car but leased instead? Is it basically the same as renting the car but you can claim the repayments on tax? I run my own business and so I would assume I would be allowed to do this.
  2. Cooke Consulting

    Cooke Consulting Active Member

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    Hi Anon,

    There are numerous leasing options available – it’s really just a case of which one is going to suit you best.

    Novated Leasing – Employee Contribution Method, Logbook Method, Operating Lease, Fully Maintained Operating Lease, Tool of Trade Vehicle.....

    I’ll hazard a guess by the sounds of your post they may have been referring to Novated Leasing – whereby you sacrifice a portion of your pre-tax salary for cost of the vehicle and it’s running costs over a set term (anything between 12 & 60 months). Dependent on your circumstances, cost of the car etc etc - it may reduce your tax liability.

    I would strongly suggest you either talk to your accountant or check out someone like www.sgfleet.com.au (I used to be their Collections & Repossessions Manager prior to becoming a soloist).

    Also, have a look at their calculator http://www.sgfleet.com/au/salary-packaging/novated-lease-calculator/ that might be of assistance to you.
  3. MyGreatIdea

    MyGreatIdea Renowned Member

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    Whichever way you decide to go, you can only claim motor vehicle expenses as deductions for the portion of business use you have established after keeping a log book.

    Wendy :)

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