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Novated Car Leasing
DH and I are in the market to buy a new 'run about' car. We're just looking at a small 4 cyl as we juggle cars, kids and shift working and only need one large car.
So, has anyone got any feedback about novated leasing. I know all the good bits - but I want the low down i.e. when things go pear shaped stories. Surely they exist?
TIA!
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I had a novated lease and when I could afford it, it was great. Salary sacrificed the whole thing. It was wonderful.
But....
They will not let you renegotiate repayments if you fall behind or pay fortnightly if your contract says you must pay monthly.
There is generally a balloon payment at the end which if you can't afford or get a loan to cover they will take your car and sell it, and make you pay the shortfall OR they will say just give the car back and lease a new one (another 3 - 5 years of payments), OR just give the car back that they sell with no shortfall leaving you with nothing after 5 years of payments.
In hindsight I would go with a car loan as at least you can generally negotiate if circumstances change.
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We have leased 3 cars, mine being the latest. My DH is away camping unfortunately, if you can wait a couple of days I'm sure he could answer all your questions! My preggy brain can't remember anything ever going wrong though.
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We're lucky to not have issues with pay cycles etc - being Government employees everything is regular like clock work thankfully.
Thanks CM, I can wait!
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Cool I'll PM you when he gets home. A new car will be very exciting though!
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Considering the run about car we drive at the moment has no working a/c, no power steering let alone few safety features I'm excited - but I'm letting DH pick the car & colour as he's never had the excitement of buying a brand new car before, the large car we have is one I bought prior to meeting him....But yeah, we both drive the 'runabout' car just as much as each other - so there is a pinge of excitement...
Oh, I tell a lie - I had only one requirement - that the car isn't white.
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So was I but ended up on maternity leave and moving interstate and couldn't afford it anymore.
We're lucky to not have issues with pay cycles etc - being Government employees everything is regular like clock work thankfully.
Thanks CM, I can wait
Anyway....
This might take longer but play a dealer off against the lease provider. My friend got a full tricked out rav 4 for a lot less then a friend of hers who works for toyota could get it with an employee discount by doing this.
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We haven't had any problems at all with ours, however things have been pretty cruisy. We've not been hit with any large repair bills (touch wood) and we've never had a service request rejected (which they tell you they can do if there are insufficient funds in your 'kitty') and having the fuel card to just go and get fuel without it eating into your household budget is fantastic too. But that said, we'd probably not do it again. Our Accountant thinks that we should keep doing it, but DH isn't keen as it would mean another 4 years with his employer and he doesn't know if he wants another 4 years with them kwim?
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Thats the part I don't understand.....Is it the lease companies job to source the car you want e.g. we say we want a blue Holden Barina, then they go off an find it - or do we locate the car and advise the lease company where we've found the car and they handle it from there??
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I think you can do it that way. I know of others through DH's work who have found their own car and gotten the leasing company to purchase it, but if they aren't happy with it, they wont do it. When we did ours, we picked which car we want and colour/accessories etc and then the leasing company got it from us from their dealer - which was Suttons of Homebush (NSW) because they are a dealer for nearly all the manufacturers. Then Suttons delivered it to us when it was ready.
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