So we can lease a brand new car for about $100pw. includes petrol, insurance and tyres. Hubby gonna be traveling to work 20-30mins one way. Where as we would be looking to shell out 10k cash for a car.
countrypete,
Mar 30, 8:52am
I would re-check that.It's VERY unlikely to include petrol.If it does,grab it by the nuts and don't let go!
clark20,
Mar 30, 8:53am
When does a lease include petrol!
angel404,
Mar 30, 9:01am
mmmm im rechecking my information. Even if it doesnt include petrol. Is a lease worth it! Or is it better to just buy a car outright!
curlcrown,
Mar 30, 9:09am
Including petrol! Where do I get one!
carstauranga001,
Mar 30, 9:11am
You will definately pay for petrol. You will also need yor own insurance. What car are you able to lease for $100 per week! Also check millage you can do at that price and the penalty if you go over. If hubbies doing an hour each day just to go to work I'm thinking 70 k's a day! A 5 day week equals about 17,000 km (factoring in 4 weeks off for hols) per annum without any further use. Many leases are advertised as 3 years 45,000 km (total). This car is likely to do 60,000km plus in three years so the lease won't be at advertised price. Even if it was then you pay $15,600 to "rent" the car for three years and have nothing at the end. Better to just go out and buy a $10,000 car IMO.
socram,
Mar 30, 10:53am
You have to do your sums very carefully, but no way are you going to get fuel included.Remember that car lease firms aren't charities.They do it for profit, so go figure.Agree totally with #6.
If you were hiring a new car, as opposed to leasing, you'd probably be paying over $100 for two days, not 7.
If $100 includes fuel, syphon it out into the other family car(s) as required.
angel404,
Mar 30, 11:08am
It includes a certain amount of fuel. It does include insurance. It is thru husbands work. I have decided its too complicated leasing. Would be simpler to buy our own car!
trogedon,
Mar 30, 11:32am
You could buy a really good car for $5k - there's plenty around. That's just short of a years worth of leasing and you'll own it.
socram,
Mar 30, 11:48am
Are you saying the husband's company is leasing him the car!That is totally different from leasing from a lease company.
The only problem with a5k car is that when things go wrong, you are paying.
I suspect that the company is prepared to basically lease him a car that they own, rather than get stung for fringe benefit tax.By including insurance and a certain amount of fuel (ie. you pay for your own private use when on holiday) it is a pretty good deal, just as long as the salary is OK but you'll presumably be paying out the $100 AFTER tax.
A lot of guesswork here.
trogedon,
Mar 30, 6:50pm
Our Mitsi cost me $5500 10 years and 3 months ago. It had 58k kms on it. Its just ticked over to 180 k kms and all its needed was a tie rod end. So many average, simple (Japanese) cars are so reliable now for not much coin. $100 wk over 10 years is $10 400. We're way into positive equity on this one.
r15,
Mar 30, 7:01pm
not many companied that require a vehicle as part of the job are too happy with a $5k wreck. .something from this millenuim might be a start
trogedon,
Mar 30, 7:04pm
If your spelling and grammar, not to mention your point of view is anything to go by.you're an idiot.
icemans1,
Mar 31, 12:14am
which school did you go to! 2 years @ $100pw = 100 x 52 x 2 = $10,400
r15,
Mar 31, 6:05am
And does it look like an old mitsi!
Or would you want it to represent your company's image!
I certainly wouldn't
budgel,
Mar 31, 8:22am
If the company is providing the lease, ask them if they would let you have a trial period so you can get to grips with the reality of the offer.
Leases can work if you are self employed as the associated costs can be deductible and free up capital to leave in the business.
meathead_timaru,
Mar 31, 8:34am
HP does the same thing.
But at the end of the day if you spend less you have more to spend on other things, things that can actually increase the value of your business, rather than detract from it.
meathead_timaru,
Mar 31, 8:35am
Why! What's wrong with having less expenses and being able to undercut the competition whilst maintaining the same margin!
franc123,
Mar 31, 8:48am
Image can work both ways, in fact if a company rep or service provider shows up in a new vehicle too often their customers start questioning how much they're being charged, it can actually cost you business. Pays not to come across as being too flash, an older but tidy vehicle is fine with most people.
meathead_timaru,
Mar 31, 9:40am
Not too tidy though, especially if you're a tradesman, or you look like a work-shy.
steptoe72,
Mar 31, 10:08am
Lease is good if it's lease for so many months, then a small cash payment and you own it.( got a $20K Van for $485.00 after a 36 month lease)
steptoe72,
Mar 31, 10:15am
Not the same, if self employed and HP, it goes in company name and you pay it monthly,, then you keep or sell it.With a lease. at end of term, you change it into your name and own it.With it being a lease, on the books its been handered back. and you go lease anther.now you have two.
Thats with a setup lease anyway. seams the same as HP but with a twist.
marblicious,
Mar 31, 10:15am
Not much apart from the fact that you don't make money by reducing expenses, you make it by increasing turnover. With reducing your pricing you will likely increase volume making the decision to spend 5 or 50k on a vehicle less stressfull. Don't forget John Key will take 28% of your companies profit and another 5% if you want to pay yourself a dividend. May as well spend it on something you like that will also have a positive impact on your business before John gets his hands on it.
meathead_timaru,
Mar 31, 10:33am
Or not buy that pointless item, pay the 28% tax and keep the balance of the 72% profit in the company as working capital.
marblicious,
Mar 31, 10:51am
Nothing pointless about buying a good vehicle. Done correctly it will help to increase turnover and profit. Generally that would be a smart thing to do with working capital.
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