Dear OzBargain members..
I have done some calculations and want to make sure I am not missing anything. It appears that in my case it might be cheaper to get a 36-month novated lease than buying outright.
Here are my calculations
Novated Lease quote including running expenses and insurance: $1,180 x 36 months $42,688
Residual Value of car after 36 months to own car after 36 months $15,888
Minus:
Tax Savings on my income ($400 x 36 months) ($14,400)
Fuel cost I currently pay (I won’t pay as now its included in NL) (120 x 36) ($4,320)
Comp Insurance cost I currently pay (I won’t pay as now its included in NL quote) (66 x 36) ($2,376)
CTP/Rego cost I currently pay (I won’t pay as now its included in NL quote) (120 x 36) ($2,376)
Interest Savings 36 over months by not buying outright and putting cash in Offset ~($2,000)
________
Net Vehicle Cost to own with NL $33,104
________
Cost to buy outright with same specs (List Price) ~$35,000
Seems like NL is cheaper over 36 months. What am I missing here?
If you leave employment unexpectedly and terminate early, you are going to lose far more than what you’ve calculated above. Not worth the risk.