Fuel costs vs total running costs inc depreciation.

[Captiva Fan]

browny, try www.fleetpartners.com.au ... there appears to be a calculizer/estimingler there.

[MartyHusseinXF]

I did the figures on a 2003 XR8 doing 12,000kms a year and I would of been worse off leasing then purchasing. That is with an employer contribution as well. Do you work for gumbyment or charity? They have different rules.

No I dont work for either of those.

I did the calcs for 2003 XR8 and XR6 turbo doing 16 thousand kms a year and it worked out worthwhile (the amount you pay out of your post-tax salary is much less at these kms).

I used a (low) purchase price of 25k for both of them too. Which may or may not have been realistic. They seemed to be advertised for a bit higher at dealers.

[Tardinator]

My example.

Purchase Price $2000, will have got 5 years out of it, so $400 a year.
Rego + Insurance $1000 (3rd Party Property FTW)
Repairs would total less than $100 a year. (Haven’t had to do anything major to it. mainly just consumables, even after being rear ended it cost me nothing to fix cause I got all parts for free, last set of 4 tyres cost me $100).

So up to $1500 a year on depreciation, rego, maintenance and insurance.

I’ve done 110,000k since I got it 4 years ago, so 27500km’s a year.
I get 8L/100km = 2200L a year. Even at $1/L that’s $2200 a year, way more than what I spend on other things. But that said, I’m going to keep on buying fuel no matter what the price.

So there are financial advantages of owning a shitta, although I have to put up with an ugly looking car that sometimes breaks down on me, but I can fix anything that goes wrong with it myself for near nix. Unfortunately not everyone has that luxury. And things like no tinted windows or power options or aircon, but at the end of the day I still end up getting from point A to point B like everyone else.

But still its cost me all up near 15k! (But 13.5c/km). (Yes I was bored).

[lumpy]

I get a car for nothing since it's an operating lease. Fuel cost me nothing, repairs cost nothing, servicing costs nothing. I someone prangs into me (has happened 3 times in the past 2 years) they pick up my car, deliver a hire car car, and repair it with no charge. The only thing I have to declare is the FBT amount which adds towards any govt family assistance I may get (which I don't). I can safely say this is the greatest car I've (never) owned.

Hopefully I'll never own another daily driving car again.

[MickyD]

^^^^ not far off my situation. Company has a base allowance to cover the lease, rego and FBT costs, then over and above that they pay ALL the running costs. works out nicely
If the base allowance doesn't cover then lease etc then I pay a bit extra pre-tax, if it's under, I get the extra cash. Off the top of my head I think I contribute about $130/month pre-tax to the lease.

[AlexinPerth]

^ this scenario is basically what GTSBoy was referring to earlier.
No ownership ftl.

Alex.

[BigMuz]

Well ... AU's are a special case, IMHO.
Better to use a Commode (which won't be worth that much more, but it takes away any ability to argue against your figures).
.

2002 HOLDEN COMMODORE

VX II Executive Sedan 4dr Auto 4sp 3.8i
Prices based on km 60,000 - 100,000
Trade in price guide* $6,800 - $8,000
National average price - private sale* $8,600 - $10,700
Price when new (RRP) $31,650
all prices quoted are GST inclusive

So it's almost line ball with the AU mate. Sorry :D

[GAZ914]

So there are financial advantages of owning a shitta, although I have to put up with an ugly looking car that sometimes breaks down on me, but I can fix anything that goes wrong with it myself for near nix. Unfortunately not everyone has that luxury. And things like no tinted windows or power options or aircon, but at the end of the day I still end up getting from point A to point B like everyone else.

This situation is OK when your young but if you absolutely need reliability due to work/family commitments, the chances are a new (or near new) car is going to break down less (generally - not always - OK).

In my situation, I do >33 000 km per year to and from work. I happen to earn resonable money and so a Novated Lease worked for me due to the fuel/repairs/tyres/etc costs coming out of pre-tax salary.

I used to drive a AE86 Corolla with 180 000 km on it - no air, no P/S, no handling... I used to do all the servicing myself but services came around pretty quickly and then things would break (water pumps, alternators, etc) randomly - making it inconvenient spending all weekend fixing the #&^$ing car.

I worked out roughly that it cost me about the same to lease a $25K car as to run the Corolla - so I did and have not regretted it since.

If you only do short trips to work and therefore not many Ks, and don't need a "decent" car for work related stuff, then shitter is probably the go

cheers
Gaz

[itsnotagsr]

I only do about 5,000kms a year, so theres no point anymore paying $40-60k for a new car. Just spend the difference on drinking and racing :D

[Merry Vanly Stan]

dunno how right the figures are, but this is a useful calculator!

http://business.commbank.com.au/disp...CH2689,00.html

[wiggah]

The most common mistakes I've seen with people comparing novated leases to outright purchases are:
* ignoring that there is a residual and you don't own the car at the end of the lease. you have to add the residual to the total cost of ownership if you want to compare it to an outright purchase over the same term.
* ignoring the fbt liability which is not tax deductible.
* not considering the cost of finance (interest) in the lease calculation.

Even on a 6 figure salary I find the benefit of leasing a $40k car marginal at best....

[MartyHusseinXF]

Even on a 6 figure salary I find the benefit of leasing a $40k car marginal at best....

You have other things to reduce your gross salary? Investment properties etc?

[Merry Vanly Stan]

so long as you set a realistic residual, it dosnt add to the cost of ownership at all.. and if you cant get it to stack up on a six figure salary then you need to get a better accountant.

[wiggah]

so long as you set a realistic residual, it dosnt add to the cost of ownership at all.. and if you cant get it to stack up on a six figure salary then you need to get a better accountant.

No but it makes a direct comparison of buying a car outright over the same term invalid.

You have other things to reduce your gross salary? Investment properties etc?

Yeah, but still >100k after deductions.

I'll try whip up a spreadsheet with my calcs. When you compare the lease to an outright purchase, are you taking into consideration that with an outright purchase you paid for 100% of the car and not the 55% (or whatever 100% minus the residual is) you own of the vehicle.

[MartyHusseinXF]

Yeah, but still >100k after deductions.

I'll try whip up a spreadsheet with my calcs. When you compare the lease to an outright purchase, are you taking into consideration that with an outright purchase you paid for 100% of the car and not the 55% (or whatever 100% minus the residual is) you own of the vehicle.

Fair enough, not too different to my situation then.

Thats actually the reason why I bought a cheaper car rather then the new one. Same running costs, shitload less FBT (or equivalent post tax payments using ECM method) to pay, less finance costs to pay.