Lease Car

Looking for advice here team. Just started a new job, in my last job I worked from home to a boss interstate and didnt really need a car so I sold my WRX, took my wife's old Commodore (2004 SV6) and bought her a new car (Passat Diesel). I have just started a new job and I need to do a bit of travelling to visit different work sites. Without revealing too much personal info, my accountant informs me that novated leases are definitely the way to go.

Requirements:

Wife has the Passat so we will use that for any family trips or trips that need room for more than 2 people. For work trips normally I am the only person in the car. I wont need much luggage space. Small car is OK with little need for space.

Sites I will visit are all urban/office based, no offroad/dirt driving needed so 2WD OK. I dont have a need to tow or carry around 8 kids, not interested in 4WD tank!

I am a frustrated boy racer going through a midlife crisis so something sporty is definitely required.

As a committed Ozbargainer, getting a deal that pulls somebody's pants down will be almost as important to me as the car that I eventually buy.

I know that depreciation is normally the biggest cost in buying a lease car. I need to find something that will depreciate slower than expected to maximise the car's value at the end of the lease. A 2 or 3 year old car would be OK.

In the past when I have bought a lease car I have managed to get a fleet discount and then the lease company has worn the GST component of the car's cost as an input credit; often saving me thousands off the amount I have to finance. With both I could potentially save up to $10K off a new car price which may make the benefit of a 2 year old car less attractive.

I HATE!! fake sporty cars, the type that has a 'sports pack' including a decal, floor mats and a leather steering wheel etc. I want the genuine article and the better engineering/handling and performance is what I am after.

Candidates:

2nd Hand

BMW 135i - Looks like there are some 09/10 models going around $39k ish. New model/shape out soon. Looks OK with serious performance. Likely to hold value over the next 3 years I think. An option.

New

Toyota 86/Subie BRZ - Looks like Tarzan goes like Jane. Looks well priced and goes well but underpowered for what it is. I am kind of interested but wonder if the sinking feeling when I hit the go pedal will annoy me.

Volkswagen Golf Gti - Once again probably underpowered and common as muck. Good reputation and potentially hold value but new model out end of year will slaughter retained value of one I bought now.

Opel Astra OPC - Looks OK but new brand/model. Will probably be hard to find a buyer in 3 years time.

Reanault Sport Meganne - Drool!!!!! Looks and goes great but probably overpriced. I have also had an RS Clio in the past and whilst I rate it as the best car I have ever owned, it was very hard to sell at the end of the lease.

VW Polo Gti - Maybe a bit small?

Renault Sport Clio - New model in Jan 14, looks great, would love one but cant wait that long. Not interested in the current model.

WRX - Had one, was OK, don't want another one now.

Focust ST - Underpowered again, looks like a great value package but I worry about the resale value.

Mini Cooper S - Not sure I like the Mini look, certainly not as much as some of the other options.

Veloster…..not even going to comment…just No!

Budget that I am prepared to finance is about $40K. I say prepared to finance as if I buy new, as stated I will look for a fleet discount and have the GST paid elsewhere. Any servicing, fuel and other running costs etc I pay out of pre-tax income so deals that include free servicing or fuel etc aren't of great interest, I'd rather a cheaper price.

Any recommendations or advice?

Comments

  • Have you looked at Mazda Sp25. Looking at some cars on the list I guess you may be interested in a Mazda.

  • Check with your accountant, in many cases the car has to be Australian made to get the best deal out of it. On the plus side this makes the choices much simpler. My personal interest in cars is very different to yours, so I won't make a recommendation.

  • +1

    Considering that the servicing costs are not too important, why don't you just completely give in to your mid-life crisis and buy a Porsche? You could get an 06/07 model boxster for your budget. They depreciate relatively slowly from this age.

    • I've previously had an 89 928 S4 which I leased for 3 years and eventually managed to sell for a small profit (compared to my purchase price) at the end of the lease. Good call, I'll have a look online at some boxsters. Another thought I have had is the new Merc A250, if i could find a great deal!

  • I would have no hesitation in going the WRX, especially the new one coming out soon if the concept pics are anything to go by. As a WRX owner I am biased though. Not much else in the price range will match its performance and you get AWD. The BMW is a great car but then you end up looking like another tool in a BMW

    • Wow, just saw the images of the new WRX and it looks nice. I bought my last WRX on a pre-order when the current model came out, this ones not due until 2014 though, not sure I can wait that long.

    • What I have been lead to believe about Subaru from an Ozbagainer's POV is that some time ago Fuji Heavy Industries sold the distro rights in Australia to a company called Inchcape. These guys signed a deal for all dealerships within 40Km of the CBD's. Existing dealerships that were within that radius either moved or had their distributorship cancelled.

      As a result all of the dealerships within most of the big cities are all owned by the same dealer. it is very hard to play a couple of different dealerships off against each other to get a better price. Most are linked to the same company inventory system etc and i think they can all look up what the other dealership has offered you etc.

      If you can find a dealership 41Km+ outside of the CBD that is still independent they are often more open to doing a better deal. I bought my last WRX from the dealership at Lilydale outside Melb and it was several K less than my local dealership.

      It wasnt as new/flash a showroom etc but at the time I was looking for a pre-order on a new model. The local dealership just had excuses about there being no details or pricing for the new model yet and telling me that the new model was the same as the old models they had on run out pricing wanted to get rid of etc. The Indy place gave me new model brochures, loads of info and happily took my pre-order at a price a few K less.

  • I just put in an order for a Toyota 86 under a novated lease (salacry sacrificed through company).

    The company was able to get a good deal on the car - ~$29k excluding GST (no GST payable).

    It will cost me about $190 a week on a 2 year lease (including 15k per annum, servicing, etc), after which I can purchase at ~55% of the value when new. I'd expect after 2 years this car will be worth more than 55% of the purchase price.

    PM for more deets

  • Another comment - when I put in the order in Feb - was advised end of June delivery. That has since been bumped back to end of August delivery - unconfirmed.

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