Advice on Properion Needed

[JiMb0]

Originally posted by bucket

1. By the sounds of one post it seems that you have to put it though a company ?? Or can you personally get this deal of them. As i saw someone couldnt get it cause he was with a fleet ??? Sorry ive jsut never heard of **** liek this b4

2. I am 18 with a rating 6, would they still accept me ??? (Got heaps of $$$$$ though) Or would i have to put it under my pars name.  

3. Are you able to pay it off before the contract finishes, eg. you get a 5g bonus, can you wack that on the total ???

4. When you get this deal are you then able to modifiy it ? Or does it have to be modified before you sign up ?

5. Is there any special place that you have to get your liner though ? or can you import it yourself, i thought you would have to purchase one though a car yard.

Nathan.

I'll try to answer your questions to the best of my knowledge Nathan. Any other information people have on these questions is most welcome.

1. As the finance is made available through the use of a novated lease, the payments do have to be made through your employer in pre/post tax payments. Your employer also has to agree to go ahead with making the payments, otherwise in the case where your employer does not wish to co-operate it does make it difficult to go ahead with.

2. Age is not an issue for the insurance facet of the package (have a looksee at my previous comments) however for the application of finance it may be nessessary to have someone back you, dependant on your situation of course.

3. I'd believe that as the pre/post tax payments are calculated to be made over a specific period of time, lump sum payments would alter this relationship and therefor cause a problem.

4. Certainly, mod away when you feel like it, once again read the previous comments on insurance. Just make sure you keep all receipts for your purchases and there shouldn't be any hassels.

5. Sourcing of the vehicle is usually done by staff at Prosperion as usually the relationships they have in the industry allow them to find the vehicle your after at a much lower price. However if you wish to go for a vehicle you know of, I can see no reason why the would not allow it.

Hope this gives you something to work with ...

[Duncan]

First up, I haven't bought my car through Prosperion, but I can add some information about company cars in general.

Always get an accountant to check out the numbers for you - they will be able to give you accurate figures.

If you have a car bought by a business (either outright or through a lease) - everything related to that car is tax deductable to the business - and they can pass this on to you as pre-tax costs instead of post tax.

Some examples (think what they cost you each year all up) - petrol (98 octane gets expensive), services, repairs (too much drift practice...), mods!, depreciation, insurance, stamp duty, rego GST on purchase etc etc.

For your pay - the total cost is deducted from your before tax pay - eg if you earn 45,000/yr you'll pay 10,600 tax, if you deduct $10,000 for your car from that gross, you only pay 7,400. You will need to get your employer to agree to make the deductions. The more you earn (esp over $60,000), the better it works.

The only catch is that you have to pay FBT on the total cost of the car (rate varies by Klm, down to 7%, most pay 11% for 25,000 - 40,000klm/yr).

Gotta love a system that costs you less the more you drive and the more you spend:D

This all probably sounds too easy if you've always had a privately owned and maintained car, but it all 100% OK - operating or novated leases like these are how most expensive cars are paid for.

[bucket]

thanks for the replys guys.. Really appreciate it.

One more question..

My biggest thing is i get a skyline do all the mods to it and then do i have to sell it when the "lease" is up ? or can i buy it ??? and what sort of price would be lost. ?

[ex-static]

You can either sell it, or buy it at the agreed residual.

So.. just say your residual is around $10,000 at the end of the lease, you can either buy it back for 10k, or you could sell it for 15k, and keep 5k .. if you know what I mean? Either way, you HAVE to pay the residual.

[bucket]

Ohhhhhhhhhhh okay

i get the idea now .... sweeet it sounds liuke a pretty good system.

I think i might have to investigate, I was wondering if anyone here is a contracter.. Im a IT contracter so i am always at different companys usally ever month/two doing SOE Rollouts, or Desktop Support. They said i can get a busiess manangment company of some sort that will do the payment **** for me. As i dont think my contracting company will do it.. How does that part of the system work.

If you cant understand that, sorry i have a bad hang over.

[JiMb0]

Also you can have the finance company sell it for you or sell it yourself (if your planning on selling it instead of buying it) ... I'd strongly suggest selling it yourself, against allowing the finance company to do it for you .....

[Duncan]

Hi Bucket,

I'm an IT consultant, but I contract through my own company - so my company just owns the car. If you can't or don't want to have your own company, you could work through a group like Consultant's Exchange who act as a management company for you, manages your contracts and billing and pays you as an employee (including salary sacrifices).

I'm not an accountant, but if you regularly work for different clients, you should be able to set up your own company to work through. Apart from the car etc, there's also a lower tax rate for company income (30% v 48.5% for personal income).