Buying car in Australia

Buying car in Australia

Loan from novated - EMI on salary sacrifice from salary - daily expenses on 0% on purchase card

Pros	cons	Risks
Higher EMI deduction	Low Net salary	Lease period can be extended on residual value
Greater tax benefit	Maxed credit limit
No GST/FBT on EV	FBT for non-EV
Tax benefit on insurance	Lease has to be closed if employment ceases
Tax benefit on rego
No immediate burden of purchase
Credit card debt can be extended

 

 

Loan from car company - daily expenses from salary - higher down payment on 0% on purchase card

 

Pros	Cons	Risks
No immediate burden of purchase	Lease period can be extended	Loan period can not be extended
Lesser loan due to high downpayment	No tax benefit
Credit card debt can be extended/BT	GST
Actual Net salary	No Tax benefit on insurance
Loan need not be closed if employment ceases	No Tax benefit on rego
Credit card need not be closed if employment ceases	Lower EMI deduction due to higher downpayment
	More down payment on credit card
	Maxed credit limit

 

 

Loan from car company - down payment on 0% on purchase card - daily expenses on 0% on purchase card

Pros	Cons	Risks
No immediate burden of purchase	Lease period can be extended	Loan period can not be extended
Credit card debt can be extended/BT	No tax benefit
Actual Net salary	GST
Loan need not be closed if employment ceases	No Tax benefit on insurance
Credit card need not be closed if employment ceases	No Tax benefit on rego
	Higher EMI deduction to low/medium downpayment
	Low downpayment on credit card
	More loan due to low/medium downpayment
	Maxed credit limit

 

 

Pay outright - huge down payment- no tax benefit - high rego - immediate burden of purchase

BT= Balance Transfer

Rego= Annual registration charges