Leasing - How Much Do You Pay Per Month?

[JimmyXR6T04]

Hey guys,

I'm considering a lease type option on my next car, as I've heard it can save a few bucks in tax, and various other good pointers... what I was wondering though, how much do you guys pay per month, and what was the purchase price of the car?

I'll be buying either another XR6T, VE SS, or GT, depending on price and deals. Hopefully I'll get away with spending between 40-55k.

Also, does the monthly cost include fuel, tyres, services, rego and insurance etc?? I'm basically trying to do the sums and see if it really will benefit me or not. At the moment, I pay $1050 per month (not lease) but that was because I added extra to the loan when I got the car.. so the total loan was a tad over 50k... based on that, if the lease cost is around $1000 per month and includes all of what I mentioned above, I think it may be a good option.

What do you guys think? and for those that lease, does it work for you?

Cheers guys,

Jimmy.

[TUFXRT6]

Yeap info on this option would be great

[Dagabond]

$197 a week, over 3 years, 30% residual, only the car.

Do a search guys theres plenty of threads on noveated in ere.

[Flukey]

I pay about $800 a month ( car only - add ful etc )

4 year, 40% residual.

Purchase price was $46K

[TUFXRT6]

I am just finding out about the lease services so my questions might be a little basic.

Am I right in saying the follow:

You can pay some where around $900 per month which will cover

1) car cost

2) rego

3) in some cases fuel

In regards to the residual

Am I right in saying the follow:

Some where around 35% risidual.

My questions:

-Does the monthly costs also cover insurance & servicing??

-in regards to residual does this mean the car needs to be worth 35% of purchase price otherwise you will need to makeup the difference??

-I cant see where the tax benefits fit in???

Thanks for the replies in advance.

[Flukey]

Tax benefits Daniel will vary depending on your work and what your car is used for.

I have a sales role, meaning I use my car to get to clients etc. I claim a percentage of all my car costs because I use my car for work.

That said, if you have buy a car and you only use it for personal use, leasing the car will have zero tax benefits.

Residual is the amount owing at the expiration of the lease period.

eg: You buy a $45K car on a 3 year, 35% lease, at the end the payout figure will be $15,750.

[Ralph Wiggum]

Tax benefits Daniel will vary depending on your work and what your car is used for.

I have a sales role, meaning I use my car to get to clients etc. I claim a percentage of all my car costs because I use my car for work.

That said, if you have buy a car and you only use it for personal use, leasing the car will have zero tax benefits.

Residual is the amount owing at the expiration of the lease period.

eg: You buy a $45K car on a 3 year, 35% lease, at the end the payout figure will be $15,750.

Not entirly true re the zero tax benefit. A novated lease's payments are taken from you GROSS income thusly reducing your taxable income by the amount of the lease payment each month. This is a good way to benefit from the lease system if you income is high enough to warant the tax relief.

Most companies will do novated leasing but im pretty sure you can only obtain a novated lease on a salarised contract. You can transfer the lease between employers too.

Edited 23/07/07 06:38 AM by hiddeous

[JimmyXR6T04]

thanks guys,

I really don't think a lease will have much advantage for me.. and I'm not sure I like the sound of a residual at the end.. at least if I borrow, when it's paid off the money left will actually come off the price of the new car. I completely forgot about the whole residual side of things..

[Ralph Wiggum]

be aware jimmy that the residual is usually less than market value on the vehicle. quite often the vehicle can be purchased out the the lease and sold for a profit...

[JimmyXR6T04]

be aware jimmy that the residual is usually less than market value on the vehicle. quite often the vehicle can be purchased out the the lease and sold for a profit...

yeah mate, I've heard that can be the case. It's something I'll look into for my next car... mind you, that might still be a year or so away.. but I'm just trying to gauge all my options. The more I know, the better my decision will be.