Geekzone: technology news, blogs, forums
Guest
Welcome Guest.
You haven't logged in yet. If you don't have an account you can register now.




2514 posts

Uber Geek
Inactive user


# 214895 2-Jun-2017 07:00
Send private message

Currently I am in negotiations with work over a company car, I do a little travel for work and usually expense it at 0.72c/km, this works fine but it would be nice to have a company car.

 

Currently my 2001 Commodore is costing around $13,500+ a year to run and is needing repairs more regularly now it has hit 260,000km.

 

In an ideal world I'd like a new Mazda CX-5 Diesel LTD, and since you asked in Soul Red Crystal.

 

My question is related to options for leasing myself if I am not approved for a company car, who has done this? What are the pit falls? I want to do a lease where the car is returned after the period and then get a new car.

 

I am not interested in getting a HP as I don't see the point in buying a new car, but leasing seems a better option.


Create new topic
31 posts

Geek


  # 1793420 2-Jun-2017 07:34
Send private message

If you are not self employed/contracting, then you may find the leasing offsets are not in your favour, versus buying on HP.

 

Best to spreadsheet it and look at what works for you. 

 

Factors for leasing

 

Leasing coys can sometimes come up with a sharp leasing rate, due to buying a shipload of these vehicles in bulk and passing part of that saving on.

 

Warm fuzzy feeling of knowing that you can take the car back in three years and get a new one

 

Potentially less of your money tied up in a depreciating asset (but this needs to be balanced against an HP arrangement that allows a balloon payment at the end)

 

 

 

Factors for buying/HP

 

May work out cost wise, being cheaper over the same period.

 

No potential sting around addtnl kms if your work varies and travel goes up

 

You can move off the vehicle earlier/later if your situation changes

 

Some (but not all) lease coys aren't interested in looking at ex-demonstrator or slightly used models. For a CX5, this could mean some good savings if you are okay with it having 3000kms on it. 

 

 

 

Not sure what work you do, but seriously consider some of the ute options around. They are retaining such a high value after 3 years (even with high kms) that it sort of makes you wonder whether they have special pixie dust sprinkled on them when they leave the yard.


14971 posts

Uber Geek

Trusted
Subscriber

  # 1793422 2-Jun-2017 07:47
Send private message

I don't think you have to use your personal vehicle, and if your car "breaks down and you're not fixing it" there's not much they can do about it. How about them renting you a car when you need to travel?


 
 
 
 


28108 posts

Uber Geek

Moderator
Trusted
Biddle Corp
Lifetime subscriber

  # 1793426 2-Jun-2017 08:03
Send private message

Paging @nate


2538 posts

Uber Geek

Subscriber

  # 1793445 2-Jun-2017 08:55
Send private message

Quite a number of lease options and leasing agents will only work with a business entity, so bear that in mind. Even those that don't care, in most cases that I've seen it works out more cost effective to simply finance the vehicle if you're not able to offset any operating costs as a business (sometimes there will be some great lease specials though, which may alter the situation). You may need to look at a finance lease, rather than a standard operating lease, with some providers.

 

You will probably pay ~40% - 60% of the vehicles value over a 36 or 45 month lease, and remember you get nothing back at the end, whereas if you finance, you at least own the vehicle and can sell it or trade it in.

 

 

 

 

 

 


779 posts

Ultimate Geek


  # 1793449 2-Jun-2017 09:01
Send private message

I went through this about a year ago. It wasn't worth it for me to lease as an individual. If you're being reimbursed 72c per km I would look at getting something more economic. I get reimbursed half that but get additional salary that in theory is to cover lease/repayments. However as I now pay for fuel there's a financial incentive to use as little of it as possible. 

 

NB I do 30,000kms work kilometres. 


1014 posts

Uber Geek
Inactive user


# 1793476 2-Jun-2017 09:52
Send private message

dickytim:

 

Currently my 2001 Commodore is costing around $13,500+ a year to run and is needing repairs more regularly now it has hit 260,000km.

 

 

As an ex-mechanic, I have to ask... how??? My considerably older and higher mileage Fairmont still costs virtually nothing in repairs and hasn't done in the 11 years I've owned it, even factoring in labour which I don't have to pay.


31 posts

Geek


  # 1793478 2-Jun-2017 09:55
Send private message

cadman:

 

dickytim:

 

Currently my 2001 Commodore is costing around $13,500+ a year to run and is needing repairs more regularly now it has hit 260,000km.

 

 

As an ex-mechanic, I have to ask... how??? My considerably older and higher mileage Fairmont still costs virtually nothing in repairs and hasn't done in the 11 years I've owned it, even factoring in labour which I don't have to pay.

 

 

That would include fuel. Possibly the reason why he is looking to go from a V6(?) to a diesel. The split of $13.5K into fuel, compliance, maintenance and repairs would be interesting. KMs a year as well.

 

 


 
 
 
 




2514 posts

Uber Geek
Inactive user


  # 1793497 2-Jun-2017 10:07
Send private message

ok, so the company car has been rejected!

 

Thanks all for the advise, this is what I have been looking for, and yes lease vs HP (3.9% currently) is a consideration, as is a demonstrator as I have a contact that can arrange one at a good discount.

 

My commodore is a V8 and I also do all the repairs myself, $13,500 a year includes fuel, rego, tyres, servicing etc. I do 30,000+ per year.

 

Fuel = $9,921.60

 

Repairs = $1,500-$2,000

 

Tyres = $800

 

Insurance = $600

 

Servicing = $416

 

At some point in the next year I am going to have to spend some real money as there is a bad vibration forming that feels like diff, the trans is also feeling sloppy, although it has for a couple of years now.


6357 posts

Uber Geek

Moderator
Trusted
Lifetime subscriber

  # 1793517 2-Jun-2017 10:27
Send private message

I'm a shareholder in a product called BestCar where we source new cars, and then give you a full spreadsheet outlining all the costs, and whether you're better to lease or to own.

 

I can contact you to discuss further if that'd be helpful :)


Create new topic



Twitter and LinkedIn »



Follow us to receive Twitter updates when new discussions are posted in our forums:



Follow us to receive Twitter updates when news items and blogs are posted in our frontpage:



Follow us to receive Twitter updates when tech item prices are listed in our price comparison site:





News »

Kiwi workers still falling victim to old cyber tricks
Posted 12-Aug-2019 20:47


Lightning Lab GovTech launches 2019 programme
Posted 12-Aug-2019 20:41


Epson launches portable laser projector
Posted 12-Aug-2019 20:27


Huawei launches new distributed HarmonyOS
Posted 12-Aug-2019 20:20


Lenovo introduces single-socket servers for edge and data-intensive workloads
Posted 9-Aug-2019 21:26


The Document Foundation announces LibreOffice 6.3
Posted 9-Aug-2019 16:57


Symantec sell enterprise security assets for US$ 10.7 billion to Broadcom
Posted 9-Aug-2019 16:43


Artificial tongue can distinguish whisky and identify counterfeits
Posted 8-Aug-2019 20:20


Toyota and Preferred Networks to develop service robots
Posted 8-Aug-2019 20:11


Vodafone introduces new Vodafone TV device
Posted 7-Aug-2019 17:16


Intel announces next-generation Intel Xeon Scalable processors with up to 56 cores
Posted 7-Aug-2019 15:41


Nokia 2.2 released in New Zealand
Posted 5-Aug-2019 19:38


2degrees celebrating ten years
Posted 5-Aug-2019 05:00


Sure Petcare launches SureFeed microchip pet feeder
Posted 2-Aug-2019 17:00


Symantec Threat Intelligence: revival and rise of email extortion scams
Posted 2-Aug-2019 16:55



Geekzone Live »

Try automatic live updates from Geekzone directly in your browser, without refreshing the page, with Geekzone Live now.


Support Geekzone »

Our community of supporters help make Geekzone possible. Click the button below to join them.

Support Geezone on PressPatron



Are you subscribed to our RSS feed? You can download the latest headlines and summaries from our stories directly to your computer or smartphone by using a feed reader.

Alternatively, you can receive a daily email with Geekzone updates.