Fleet Sales ?

[gtfpv]

HI . is there any news or links out there regarding the state of the nation with FLEET SALES , for NOVATED LEASING . since the TAX rules were changed in may , as of yet .
i'm interested to know if anyone has any info if there has been a drop off / increase/ or similar take up of novated leases since then . it might be too early to tell . but i'm interested to see how the decision to increase tax / and decrease tax in some circumstances has effected the novated fleet industry take up.

[falconnut]

Slightly off topic but where could one pick up a ex-gov/fleet car?

[StrokedXT]

Auction houses

[freeze_dk]

pickles sell ex-gov/fleet cars

[falconnut]

Are they good or usually abused?

Any cheaper then private?

[freeze_dk]

mostly high km vehicles but being a fleet/gov car they would be up to date with servicing.. some are junk and some really clean

normally get bf's for about the 8-13k mark

[Auslandau]

Moving right along ........ and here is the topic at hand.

Originally Posted by gtfpv

HI . is there any news or links out there regarding the state of the nation with FLEET SALES , for NOVATED LEASING . since the TAX rules were changed in may , as of yet .
i'm interested to know if anyone has any info if there has been a drop off / increase/ or similar take up of novated leases since then . it might be too early to tell . but i'm interested to see how the decision to increase tax / and decrease tax in some circumstances has effected the novated fleet industry take up.

[vanman_75]

As where I work everyone has a lease car many have said they will not be getting another , there is still a big tax benefit which I try to explain even though its smaller than previously ...sorry no stats but my 2 cents

[mr smith]

My lease company called during the week as I have about 4 months left. When I told him I would be paying out and keeping the car he just gave a "sigh" as if to say "not another one" he wished me well and we said our goodbys.
Nobody at work (approx 10 people) are looking to move into a new lease once the existing one is over.

[jimmyxr6t04]

Originally Posted by mr smith

My lease company called during the week as I have about 4 months left. When I told him I would be paying out and keeping the car he just gave a "sigh" as if to say "not another one" he wished me well and we said our goodbys.
Nobody at work (approx 10 people) are looking to move into a new lease once the existing one is over.

How many kms per year do you do? I'll be looking at my first lease shortly, and i'll aim for 25,000km per year. From what i can see, i'll still get the tax savings... From my understanding it really affects those that do a lot of kms?

People in my job are still leasing, but we don't do massive kms... I'm still trying to justify the loss of some income, but i'm getting there! Who wouldn't be happy with 80k per year and a new fully maintained 50k car every 2 or 3 years?? At least that's how i'm trying to sell it to the wife haha

[mr smith]

Originally Posted by jimmyxr6t04

How many kms per year do you do? I'll be looking at my first lease shortly, and i'll aim for 25,000km per year. From what i can see, i'll still get the tax savings... From my understanding it really affects those that do a lot of kms?

People in my job are still leasing, but we don't do massive kms... I'm still trying to justify the loss of some income, but i'm getting there! Who wouldn't be happy with 80k per year and a new fully maintained 50k car every 2 or 3 years?? At least that's how i'm trying to sell it to the wife haha

I do in the 25 - 40km/year bracket at the moment. Changes to where I'm at to where its going are below.
http://www.nlc.com.au/2011-federal-budget/

People doing under 15K will come out on top from the changes, but I have never thought that was the most cost effective way into a new car. One thing the changes have done is made people at work look at if a lease is really cost effective. For it to really work earning over 80K and doing 25000km + was the key figure. Under that its better if your able to purchase the car out right and keep it for 7 - 10 years. Just remember a lease is not a free car.
That said, if the sums work and wont put any strain on the family budget, having a new car with a fuel/maintenance card is cool.

[jimmyxr6t04]

Originally Posted by mr smith

I do in the 25 - 40km/year bracket at the moment. Changes to where I'm at to where its going are below.
http://www.nlc.com.au/2011-federal-budget/

People doing under 15K will come out on top from the changes, but I have never thought that was the most cost effective way into a new car. One thing the changes have done is made people at work look at if a lease is really cost effective. For it to really work earning over 80K and doing 25000km + was the key figure. Under that its better if your able to purchase the car out right and keep it for 7 - 10 years. Just remember a lease is not a free car.
That said, if the sums work and wont put any strain on the family budget, having a new car with a fuel/maintenance card is cool.

My biggest problem is i struggle to keep a car for 2 years! So, whilst i did think about saving up and buying a GS outright, i know i'd lose a lot if i decided to sell it in 2 years. I guess i'll have to sit down and go over the lease figures and work it all out.

[gtfpv]

not a lot of ON TOPIC discussion here , but i'll put up my 2c worth .
i'll be re leasing my xr6 when the 3 years is up , instead of leasing a brand new replacement . i figure the low price of the residual , re leasing on that value will lower the cost versus , re leasing a new car . where as i woul've replaced the lease with a new car to lease if tax didnt change .
we have had this discussion in another thread though . so aside from people intentions , i'm really looking at the statistics of what has happened so far , and it seems from one reply ; business is falling in the industry . thats what i expected , and i dont think its a good outcome for the country or the car industry, especially LOCAL manufacturers like FORD . .
SOME PEOPLE are hoping that the tax change will be repelled down the track .

[Struggo]

Originally Posted by StrokedXT

Auction houses

http://www.manheim.com.au/

[mr smith]

Originally Posted by gtfpv

not a lot of ON TOPIC discussion here , but i'll put up my 2c worth .
i'll be re leasing my xr6 when the 3 years is up , instead of leasing a brand new replacement . i figure the low price of the residual , re leasing on that value will lower the cost versus , re leasing a new car . where as i woul've replaced the lease with a new car to lease if tax didnt change .
we have had this discussion in another thread though . so aside from people intentions , i'm really looking at the statistics of what has happened so far , and it seems from one reply ; business is falling in the industry . thats what i expected , and i dont think its a good outcome for the country or the car industry, especially LOCAL manufacturers like FORD . .
SOME PEOPLE are hoping that the tax change will be repelled down the track .

I re-leased my present car (in hindsight wish I had of got a new one, but I was hanging off for the TD Territory). My own situation along with others at work, is not only the changes with the tax rates but as work is slowing down this has caused them to evaluate the overall picture to see if it really is cost effective or just a good way of justifying in their mind spending on a new car.

[whynot]

I don’t have any first hand information … but I do know that a number of friends at work are doing the maths and giving up the lease option when it is due. I don’t think that it is so much the change in the rates as such … but it is a cumulative effect of tax rates, slowing economy spooking them, choked Brisbane roads, and a desire to save harder. Most of them are giving up the 4WD (rationalizing that they hardly used it 4WD anyway) and going for a small car or public transport (and giving the Misses the wheels).

This is great news if one is a Mazda dealer (very few leases through Mazda and lots of private buyers) and not so good news if one is a Toyota, GMH, or Ford dealer.

As for me, I’ll be doing one final splash with a Territory on a lease. But after that …

[cycle myth]

So how big is the impact of these tax changes?

Is it enough to overcome whatever incremental cost there is from owing a new car v a used car that requires more maintenance?

Why are individual leases considered a fleet?

[whynot]

Rough calculation on a lease that is costing $20K per year.
Previously, doing 40,000 kms per year the FBT was 7%. Post 2014 it will be 20%. Rough calcs indicates that is around $50 cash out of the pocket each week.

For some, that is not a lot of money. For others, it might be the final straw. I spoke to one chap today who gave up the car (after 15 years of leasing) for a pushbike. He is saving heaps of cash, lost ten kilos, and has gained a lot of fitness. The social engineers would be overjoyed at hearing that ...

[jpd80]

Originally Posted by cycle myth

So how big is the impact of these tax changes?

Is it enough to overcome whatever incremental cost there is from owing a new car v a used car that requires more maintenance?

Why are individual leases considered a fleet?

Under tax law, a novated lease is arranged through the employer and leasing company,
the vehicle has the same standing and tax benefits as a company owned/operated vehicle.

[gtfpv]

Originally Posted by cycle myth

So how big is the impact of these tax changes?

Is it enough to overcome whatever incremental cost there is from owing a new car v a used car that requires more maintenance?

Why are individual leases considered a fleet?

well for me , i bought a car GST FREE , and using a novated lease , worked it out to be the same as buying private with a 10% discount , and an interest free loan , then 10% discount on all running costs .
so now i would would say 1/2 of that has been taken away . it simply isnt worht it . remember novated leasing is something people took up when they were considering buying a late model 2nd hand car , they noticed they could lease a brand new one for the same money .
now its cheaper to buy the late model 2nd hand car .
so leasing didnt really make it easier for someone buying a new car , what it did do was increase sales and turnovers of new cars , pretty much captured the market on people trying to buy late model cars 2nd hand car.
well thats my opinion anyways.

[cycle myth]

Thanks guys.

Now I understand that the deal is not as good, but that the benefits are like a company claiming on tax - but how are cars bought by individuals considered a fleet buy?

[Ringo]

I work in the fleet business. The impact of the changes is still taking effect and will for the next 12-18 months I expect. There are 2 sides to the fleet business - the Tool of trade company car and the novated or 'User Chooser'

On the tool of trade side of things if you need a car to do you job then you still have a company car. You will likely find the company accountant giving you a log book to be able to do the FBT calculation appliacable to your car via the 'Operating Cost' method (aka the log book method) instead of the 'Statuatory Method'. The changes in FBT only effect the stat method. A number of large fleets (250+) I have contact with are going log book method for FBT and avoiding hundreds of thousands in increased FBT costs.

On the novated side of things the fact is that the high km novated drivers lose but the low km drivers win so while one market closes another one opens! The benefit has been reduced but not eliminated all together and the saving overall can still make it worth it but yes the FBT changes can make taking an car allowance as cash and paying for your own car more attractive.

I am sorry that i do not have stats to qute, its just too early, but my feel it has halved novated business but made little impact on tool-of-trade company cars.

PS If you looking for a fleet car as a used car buy make sure it has full service books. No books - keep looking - there are plenty more..plus the market is a little flat right now, not a lot of demand is the $15k+ bracket like there was 18 months ago. We think it is due to an overall tightening of financial belt (people don't buy what they want, they buy what they need now) plus winter and football season....

[Cúl-Báire]

Originally Posted by cycle myth

Thanks guys.

Now I understand that the deal is not as good, but that the benefits are like a company claiming on tax - but how are cars bought by individuals considered a fleet buy?

The car is usually purchased though your firms, or prefered leasing partner, not yourself. Most leasing firms such as Lease Plan and Fleet Partners procure large volumes of vehilces per year accordingly get "fleet discount"...

Alternatively you can go buy the car yourself but get the finance for an "opperating / fully maintained lease", then have a leasing partner take over from there - this will get you the specific car you want.

I am looking at options currently as my partner and I are searching for a new vehilce, but also looking to reduce our taxable income... It's bit of a head****, and I still haven't quite worked out if Novated Lease is better/worse off than financing a new car.

[gtfpv]

sorry to bump this thread, but anyone leasing these days . ????