Novated Lease vs Chattel Mortgage?

If a fringe benefit is given for the car any otherwise-deductible fringe benefit will be reduced by operating costs paid by the person in receipt of the benefit. FBT laws dont allow a person with a fringe benefit car to claim any deductions even if a cost is incurred, those costs can only benefit the FBT as a reduced benefit.

 

Would you mind posting your calculations for the two options?

 

48,000 purchase price

Novated lease 5 years

68,855 costs over 5 years. This includes fuel 280 per month, insurance 71 per month, mainenance and tyres 125 per month, rego 67 per month, roadside assistance 9 per month.
(Repayments are 265 per week)

Residual 12,050

Total cost over 5 years is 80,905 through lease.

If I buy using 3.74% offset account interest will cost 1,795 per year, fuel/insurance/maintenance and tyres/rego/roadsid 6624 yearly.
Total yearly 8,419 X 5 years = 42,095,
Add cost of car 48,000
Total 90,095

@Jmillar falls into the highest tax bracket and his interest rate is cheaper than what I could get, so his savings would be much greater than mine.

 

You can try this calculator
Salary packaging calculator | Smartsalary

 

Don't forget if there will be a tax deduction for the car to split to the use offset funds to pay it down and then borrow to acquire the car, and even the operating costs and then claim the interest.