| Novated Lease Vs Loan from Car Dealer/Bank |
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4xsama
First Time Poster
Cash: $ 0.25
Posts: 1
Joined: 27 Jun 2010
Location: Perth, Western Australia
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| Novated Lease Vs Loan from Car Dealer/Bank |
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I am thinking of buying a new car. Approx (AUS)$50,000, 4 Yr lease
I am able to get a Novated Lease through work but I must do 25000km work related km's.
The alternative is to borrow the money which I do not really want to do.
My understanding of a novated lease is that the money comes out of my gross income, not net.
I have had two different opinions from people I respect greatly but do not really understand the way a novated lease works (other than my company gains some benefit somehow)
A quick rundown of funds is as follows ( I have rounded numbers for simplicity)
I earn about $150,00,
Car is worth about $50,000,
Loan term is 4yrs.
Any advice on what I should do?
Regards,
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Sun Jun 27, 2010 7:21 am |
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coaster
Senior Advisor
Cash: $ 1357.80
Posts: 6686
Joined: 11 Oct 2005
Location: Wisconsin
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Hello and welcome to the forum, but I'm afraid without being familiar with the Aussie banking system, lending practices, and tax code, that you're not going to get well-informed advice here. I could well be wrong, but I can't think off hand of any active members who are Australian.
Now, if you'd send me a prepaid ticket for round-trip airline fare plus room and board and all expenses for the time period of, say, November 1, 2010 to April 1, 2011, I'll gladly come and learn all that stuff so I can give you some decent advice. 
~Tim~
Eye Candy : Why Whimsy
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Mon Jun 28, 2010 7:06 am |
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