My novated lease contract is expiring soon and I am thinking to pay it off, sell my car privately and take out a new contract.
I am currently with VW Finance and owning Polo.
Anyone can recommend any good provider? Some recommended me fleetpartners or prosperion.
Thanks in advance
try NLC…I am with them now. www.nlc.com.au
Pls note that the ex-Rudd Govt changed the rules on novated lease - so check your numbers. I know that when my lease ends next year, it won't be tax-effective for me to get another novated lease.
Most novated lease companies are the same (since fleet prices are on offer). Where you mostly will be stung is in the admin fee charged, the loan establishment fee, and interest rate. NLC's monthly admin fee is $20 and I can't remember the other charges.
Also pays to shop around and get quotes from various dealerships - could save yourself a few hundred bucks or get free tint as part of the deal. If you are from Melb, always include Rex Gorell GEELONG when comparing the fleet prices.
This won't be changed under Abbott, so leases are safe for at least one term of government
And also get your current car valued for a trade-in before you decide to pay the balloon/end-of-lease amount. Not everyone makes money and you may be stuck with a car that won't sell for a few months.
My friend paid off his Golf GTI recently for $21k…bargain, but he was greedy and wanted to resell it for $28k…4 mths later, he sold it for $25k…he was very lucky! During his holding period, he got it valued for trade-in and the best offer was for $23k…
I went to the VW dealer last Saturday and the sales guy gave me some rough estimate on my car value, which was on low teens. My current residual value is $10k. I am hoping if I can sell it off for at least 15k privately.
If it was me, I'd just hand the car back…Too much effort, time, trouble, cash outlay, parking arrangements, holding costs, rego and RWC issues to sort out to make such little money.
You'd be amazed at all the tyre-kickers out there or the newbies buying their first car who can't afford to buy…
Don't do anything with macquari* leasing, such a rip off financier. - A lot of small-mid size novated lease provides are using them as financier so please be careful.
NL providers don't work for free, you honestly think the $3-600 odd you pay each year will keep them in business?
To be fair, Stratton finances through Macquarie and can provide a mortgage-ish rate for $60k and over, I have had NL through a provider who uses Macquarie and it's 18% (1 year, $17k 65% residual), my workmate recently got a $18k 3 years 45% through Selectus who also use Macquarie and his is a whopping 21%…his marginal tax rate is around the 30% bracket making his effective tax rate quite low to really take advantage of NL in the first place.
Try Smart Salary their repaments are resonable. DO NOT use Remserv they are expensive.
Almost a year to this post but I am in more or less same dilemma
Want to buy 40K Qashqai. Remserv's effective rate turns out to be whopping 11.10% in cf Citibank's current promotion (http://www.citibank.com.au/personal-loans/low-rate-offer/aff…)
Obviously Remserv is pretax,GST free and salary sacrifice etc but do you think its worth giving 11.10%
Please advice fellow ozbargainers
If you are in a high tax bracket and you do a lot of kms then Salary Sac is well worth it because you get the tax back on fuel and running costs. Are you able to use other Nov Lease providers? if so get other quotes, definitely check Smart Salary.
The thing that is annoying with Sal Sac is knowing that the loan provider is taking a healthy part of your tax break to pay their inflate loan costs, so you end up coming out a little bit ahead and not a lot. It really sucks if you are in the lower tax brackets.
Sounds like you need to sit down and really do your figures for comparison.
my work uses Maxxia, can't comment on them personally but others have recommended them