Hi,
I am trying to buy a new car through salary packaging option. Have done some numbers and will work out well so long as I am not paying 7% or so interest. Therefore will like to go for the cheapest car loan available. Looking for a $40K SUV, Mazda CX-5 is an option but open for recommendations on this as well.
Also, depending on the salary sacrifice company, majority let you purchase from your local dealer.
So the steps:
1) get quote from salary sacrifice company
2) go to dealer, test drive car, look at all the options etc
3) ask them to beat the quote the salary sacrifice company supplied, if they can, buy through them and give the details to the salary sacrifice company.
This means you get the car you want, at a good price, at your local dealer rather than driving across town.
Good points - further to these if you're really keen to get the ball rolling on the vehicle order you can put a deposit down with the dealer (which will be refunded to you by the leading company) but to be safe you can make it subject to finance approval.
Otherwise you can agree on a price with the dealer without leaving a deposit, get them to submit the vehicle quote in writing to the leasing company, leasing company will calculate the repayments (with estimate of before and after tax components) and the lease residual and send you a novated agreement quote to accept. If you accept they'll do a credit check and afterwards they'll issue a purchase order to the car dealer.
I don't know if it is just my company's relationship with Leaseplan but they offer the facility to deliver the car wherever you want (e.g work). That said I'm ordering and picking up mine from my local dealer, my contact there was fantastic to work with and very competitive on price.
Agree on all points :)
Plus salesman will let you know of any benefits currently (Free servicing etc), or might have a demo that appeals better.
What do you mean, cheapest outlay or cheapest interest rate?
No one on the internet can tell you what interest rate applies to you without knowing your financials.
I'm assuming it was cheapest rate, as $40k certainly isn't the cheapest borrow ;)
Just cheapest interest rate. I am aware that there might be some variation on final calculation so that's ok. But I am sure most of us would be able to get comparative interest rate unless you have bad credit ratings.
Check out Subaru XV. Have loved mine. I went for it over the CX5, tried both out and the XV being slightly cheaper wasn't the deciding factor but a nice bonus.
Currently looking to lease an XV. Any tips?
Not sure what company your work usually deals with but I went with smart leasing. They have been very good to deal with and currently have my second car on order through them. Just finished the XVs lease. Anything particular you would like to know?
@kcbworth: Best price I got was via the leasing company. They obviously have pretty big buying power. I negotiated pretty hard at my local dealer and was happy with the price. Went to smart leasing and told them what I wanted and they ended up coming back with a price $1000 cheaper. Make sure to remove all the extra crap they try to add on that you don't want or need though. They tend to automatically chuck in paint protection, small damaage protection etc until you ask for it all to be removed. It's all pretty clear in the quotes what is on there, at least it was for my company.
@dwhes: Thanks mate sounds promising! Anything specific you are happy to (or can be bothered) sharing would be much appreciated :) !!
Really, you looked at all the cars on the market and decided that?
Thanks for the link. Some things to think about there for sure.
If you can convince Honda to bring the AWD auto hrv into Australia I'll get that instead? :)
@kcbworth: each to their own but I've been very happy with my XV. Also know 3 other people that bought them after seeing mine and being impressed. No it doesn't have the biggest boot space if that is what you need. Depends on your personal circumstances as per any car. But it worked for me and has been great to drive. Plus can't go wrong with Subaru reliability in my experience at least.
Make sure you know which novated lease companies your company deals with, you will probably find they only deal with one or two.
I'm sure you've already done this but check your employment contract, talk with HR/Finance and make sure you are eligible to salary package. There is some admin work involved for the company (eg calculating FBT on the novated vehicles) so they may not offer it to everyone.
I ran some quotes through my company's portal with Leaseplan for 36 month term, interest rate factored into the quotes is 5.26%
Hard to go wrong with a CX5, if you like medium Japanese SUVs then also check out CRV and Xtrail.