Hello,
I'm looking at getting a new car but I'm undecided about salary sacrifice or a loan from a bank?
Does salary sacrificing a car live up to all the hype? Or am I better off just financing a vehicle?
I'm looking at the Hyundai Tuscon SUV at this stage. I'm still unsure about which model to go for though.
Any help and advice is appreciated.
Thanks =).
It really comes down to your own individual finances as to which is a better method. If you can borrow against the equity on a home loan, that would be better most of the time. Will you change a tax bracket? Do you plan on keeping the car or upgrading at the end of the lease. So much to consider and weigh up
Also depends on how much you drive, the more you drive the better the tax savings (fuel, servicing, tyres are inclusive).
Interest rates also tend to be higher with the salary packaging companies so may not be worthwhile either.
The lease option doesn't really affect my tax bracket and I am planning on keeping the car at the end of the lease. Apparently, $9,000 would be owing at the end.
Yes because you'll be driving a new car every 3-4 years and not worry about actually owning a liability. You give the old keys back and get a new key with your new car.
No headaches of ownership as all the cars will have full factory warranty etc.
Unless your buying a rare classic car, they are always going to depreciate, they will suck money out of you and their is no point in buying one that's going to cause you some financial burden. See if you can find a way to get it as cheap as possible.
Do you have any tips? I was thinking about going to the Hyundai dealership to see what I can negotiate. I'll admit this isn't a strength of mine.
Hold off on the Tucson if you can, a face lift is coming soon.
I’m 8 months into my 12 months novated lease. I did all the math before and works out great for me to do it this way, and I think at the end of the 12 months I will come out way on top. But I drive 45,000km per year and earn $100k which is what makes it good.
Just do the math and see if it works out for you.
I'm curious to know what you'll do after the one year?
Will to
a) extend to a second year?
b) buy the car out and do another one year lease?
c) have your spouse's lease company buy the car off your lease company and lease it through her for a year?
d) buy the car and keep it?
e) hand the keys back and get a new one?
f) hand the keys back and take the bus?
g) buy the car and sell it?
Not fully decided yet - due to work commitments my contract expires in feb so I won’t sign another lease til I get an extension on that.
I’m happy with the car though. Got a diesel qashqai which they don’t make anymore and I’m a fan of its fuel efficiency which there isn’t much else around that matches it, so I guess I’ll probably keep.
Outright purchase > Home loan Offset** > Salary Sacrifice* > Car Loan
*Depend, if you drive a lot for business purpose, and there are lots of hidden fees.
**Make sure to pay it off quick
Savings > Financing