Originally Posted by Sweet Red
Would this be on a lease/salary sac type of arrangement? How many Km can you/are you allowed to do? Is the $300 pre tax or post tax? Its confusing because you have to buy your own $8k of fuel so this wouldn't be part of the lease package. Otherwise a quick calculation shows this deal would cost someone $29k plus at least $8k for fuel and who knows what other hidden costs so a total of at least $37k over 2 years after tax dollars, just to "drive one". You can pick em up under $50k now, would be cheaper to take out a loan at housing loan rates pay the $6k interest for the 2 years, add the fuel $8k, depreciation say $15k so total of $29k. Any finance expert here explain this one?
It's not dissimilar to the old (and horrible) Red Carpet options type of deal except there is no trade in valuation in the equation - the RV itself is the trade.
From the sellers viewpoint they are working on standard fully maintained lease figures to assess the averaged running costs (less fuel) and the 2 year time frame has been struck as it should equate to the sweet spot for operating costs - the reasons a lot of fleets now use this time period.
Given that figures for 2 year resale aren't generally available it's a little hard to assess whether this is a reasonable deal or not - but lets look at a few numbers.
Ignoring fuel, the maintenance costs for 2 years, assuming 20k km per annum will break down thus:
Scheduled Servicing: $ 1,100
Tyres (1 set) 1,980
Registration (Vic) 1,080
Insurance (30+ low risk) 2,500
Total: $ 6,660
The original purchase price of the car is around $63k including Vic Stamp duty and if we assume a standard 3 year 40% CHP this would amount to $1,346 per month. Ignoring the tax implications of the two different methods the actual raw costs are thus:
HSV Plan - Total 2 year cost: $ 31,096
CHP - Total 2 year cost: $ 38,904
However we need to look at the value of the CHP vehicle at the end of the 2 year period before we can equate these deals. The HSV Plan has a zero RV for the customer so lets look at the maths for the CHP.
Finance payout at 2 years: $ 38,510
Resale Value of car at 2 years: $41,990 private sale (source Carsales.com - VX2 with 40-45k km.)
Net Value: $ 3,480
Difference in total cost between HSV Plan & CHP: $ 4,328 better.
This works for HSV because they will use trade based costs on service components, do a deal for insurance and tyres and sell them with a retail margin at the end of the 2 years. You would expect that if there is a large take up on this that the resale value will suffer as they all hit the used market at around the same time but I am sure that is factored in.