Choosing the right car - Case Study
One of the advantages of having Autopia on your side, is that you benefit from our vehicle selection assistance. Choosing the right car has a large affect on the eventual financial outcome of your novated lease.
To demonstrated this, we’ll examine the difference between salary packaging two very similar cars.
Salary and vehicles |
|
|
Salary |
$100,000 + super |
|
Car allowance |
$0 |
|
Vehicle 1 |
Ford Falcon XT |
|
On road cost |
$45,599 |
|
Vehicle 2 |
Subaru Liberty |
|
On road cost |
$43,683 |
|
Annual kilometres (both cars) |
25,000kms p/a |
|
Usage (both cars) |
No business use |
|
Term (both cars) |
3 year lease |
Both family sedans are comparable in price, however when you come to dispose of the Falcon at the end of the lease, you’ll find that it’s depreciated a lot more than the Liberty.
3yr cost summary |
Ford Falcon |
Subaru Liberty |
|
Up front costs |
$0 |
$0 |
|
Post-tax running costs |
$40,426 |
$38,939 |
|
Opportunity cost |
$3,647 |
$3,513 |
|
Disposal cost |
$2,309 |
-$4,216 |
|
Total-Lifetime-Cost™ |
$46,382 |
$38,236 |
As you can see, the right advice, can make a big difference to the profitability of your novated lease.
By choosing to salary package a Subaru Liberty as opposed to a Ford Falcon in this instance, you would have saved $8,146 over the term of the lease.
Summary
Salary |
Vehicle |
Savings |
|
$100K |
Subaru Liberty |
$8,146 |
All of the above costs include GST.