Buying a new car - Can someone explain leasing?

[Anon]

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.

[Cooke Consulting]

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-pac...se-calculator/ that might be of assistance to you.

[Couple It]

Originally Posted by Anon

I run my own business and so I would assume I would be allowed to do this.

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