Prado Purchase - Novated versus ordinary lease

As you said you are only doing around 15k per year. You really need to do 25k per year. I suggest you need to get out more and travel. Co camping each weekend and holidays. In my last job I had a novated lease and like most of the people where I worked, March was spent driving around the country to get the clicks up. What a waste in some ways.

It's a hard one...but nobody knows your circumstances better than you...if you have doubts about, it shows that you are probably right with your sum's so far.....I leased my wife's Tiburon and she battles to do 15k a year...still it will be a new car still when the lease finishes.

The amount you save with the fleet discount, gst,taxes, etc will put a lot of extra's on your beast and gst free as well, plus you will know it's history.

The leasing can also benefit you by reducing your income through the pre tax part and so reduce your yearly income tax. I use this and salary sacrificing as well.

Don't know if this helps?

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Although I also have a Novated lease, I firstly wouldn't give advice based on my circumstances as they would certainly differ from yours. Second, I personally wouldn't be approaching a 4WD and camping forum for lay financial advice.

It shouldn't matter whether the vehicle is a Prado or a Camry, you should seek advice from a more appopriate source like a qualified financial planner or your accountant.

Thanks for your spin on things everyone. I like to be well informed by a wide range of people.

Oh and Wizard1 - just to let you know - I have spoken with my tax accountant, my financial advisor,my family, my friends, car brokers, car dealers, my neighbour, i even ran it by my pet dog and finally I Googled 'novated v ordinary lease' and surprise, surprise I was directed to another thread on this wesbite! Go figure...you can never ask too many people for their opinion of which some is always absolutely useless - like yours. Happy camping!

Novated leases work best with
1. High income
2. High Km's
3. low purchase price of the car

Based on you not meeting points 2 and 3 I think you will find the maths wont work for you

Going camping and on holidays sounds like a fun way to clock up the km's, but I have found it doesn't get the km's on car as much as daily commuting.

I found when on holidays - even 1000km from home - I'll do less travelling than my normal commuting to work. Once I'm at my destination - I'll stay put for a couple of weeks with very little distance covered.

Last year - even though I travelled across Australia and back in my novated lease vehicle - I clocked up less km's than I would commuting to work (200km per day).

I don't commute far to work now and have stopped novated leasing. I won't even think about again until I'm doing over 40,001km per year.

Bracket creep has made novated leasing less worthwhile over the past couple of years also.


good luck
swampy

Binstead,
Not sure if this is any help but a friend of mine bough a vehicle that depreciated quite quickly, the residual at the end of the novated lease was quite painful, so it's not only the start and duration the end is also a factor, what your left with at the end of the lease. He bought a Musso thingy, yea I know............. nuff said, costa lotta at the end of the lease.