Is it worth buying MG4 in current climate as the depreciation is so much that savings are negated.
I got quote for MG4 lease where after two years residual or balloon payment is 18k with drive away of 32k
Fuel savings and tax savings are good for MG4 as one is able to lease it pre tax 100%
But end of lease balloon or residual payment is much higher than antcipated market value of the car.
Thoughts please?
If it’s got 50k km they would have bought it for excess of $40k. Is that not enough depreciation for you?
It doesn't matter what the original purchaser bought it for. A new MG4 is $33k drive away. That's the benchmark the car must be compared against.
Doesn’t reset their depreciation though.
Tesla had the same issue when they dropped their prices.
Asking price and actual sale price are two very different things.
I think you already know the answer.
All cars, EV, ICE, PHEV etc, apart from a few niche models, depreciate - a fact of life. Cheap CCP-made EVs are going to depreciate a lot because there's going to be so many of them sold.
Make a choice and move on.
They're fun to drive…. Might look at other models for better comparison. Check under tray as some dealers not covering it. Ours also being strange and did other weird things. Definitely have an under tray issue and now struggling to get it fixed. Can easily fix with sealant but bad experience so far. Car drives excellent despite many negative comments.
Definitely have an under tray issue and now struggling to get it fixed.
Shouldn't be a struggle, it is a known issue and they gladly fix it. Or is there more than one issue?
Yeah… Basically sold a car that looks like it's been used.
Definitely worth buying, that 4 powerwall with v2g coming out next year, a mobile power bank on wheels and point A to B transport. Unlike Hybird and ice cars which can only serve one purpose.
dunno all this novated lease stuff but my understanding was that vehicle lease repayments and usage costs were only tax-deductible if used for travelling between places of work and NOT for journeys between home and work
so having avoided an MG4 as something Made in China with low crash safety scores, I'm bemused by all this discussion of "tax savings" - anyone ?
Your understanding is incorrect.
Novated leased cars do not care whether you use it for 100% private or 0% private purpose.
In fact you don’t even have to be the regular driver - your family member can be.
Edit: see some FAQ which covered this question from this company. I only chose a random page but you will see similar information via any NL company or ATO’s own pages.
Is it worth buying MG4 in current climate as the depreciation is so much that savings are negated.
If depreciation is so high just buy a second hand one. I really don't get the argument that depreciation is a bad thing.
Depreciation is the single biggest cost of car ownership, only matters to those who have attained financial literacy
Its a $40k car. Let's assume horrible 2 year depreciation to 25k.
You can now buy 2 year old car for $25k. Depreciation has saved you $15,000. The financially literate would call that a good thing.
Definitely buying pre-owned is the way to go but few here seem to consider pre-owned anything. Everyone seems to want new via novated leasing to get the GST rebate. They'll find out the true cost when it's too late.
@sumyungguy: Lots of people mistakenly assume that only new EV get FBT exemption.
In reality any EV / PHEV first sold and used after July 2022 and have never paid LCT would qualify.
This means that if you find a used EV / PHEV which meet the above criteria and is significantly cheaper than new, then it’s actually an amazing deal when combined with tax saving and FBT exemption
Car Sales is full of dreamers expecting COVID era pricing. It doesn't help that Car Sales itself recommends people list cars at inflated prices.