Classic vehicle leasing - 60's porsche

[Michel]

Has anyone had any experience with leasing solutions on a 60's Porsche???

Have spoken with Mcmillan and they can do it...though would be interested to hear form anyone currently leasing their car?? Thinking of leasing the 65 912 recently purchased and having its resto costs packaged as part of a lease as 'running costs'.


Any thoughts on merits etc plus companies anyome has had dealings with
Cheers

Michel

[Craig T]

sorry - no experience with leasing

[OBRUT]

i've done it - used CBFC (CBA).

if works well if you are expecting high running costs as they can be offset against the FBT liability. you should check with the ATO if resto costs can will qualify in the same way.

however, it can be hard to do if you have already bought the car.

[Michel]

Thanks Ryan

Mcmillan do not seem to mind the fact that it is already purchased.

I read in Auto Business Solutions around 2 years or so ago an article that outlined a scenario based on the purchase of a tired MGB leased over 3 years? that included resto costs as an aspect of the cars runninig maintenance regime - perhaps ATO has altwered its view on this on past 2-3 years...

The scenario sounded feasible as the vehicle was obviously worth more than the residual after the lease period

[Paul W]

I’d be surprised if resto costs could be offset directly against a tax liability; would have thought they’d be considered capital improvements in nature and have to be depreciated. Might also be worth considering the financial vehicle you use as I thought a lease meant the title and depreciation benefits were transferred to the lessor. Chattel Mortgage or the like might suit you better.

[Michel]

Just been speaking with compnay in melb. called the Remunerator. They wrote the article i refer to earlier. the vehicle in that instance they packaged the car under an 'associate lease' as opposed to novated.

They are sending the article details which I will post.

Accordingly all running costs where you are replacing items whether it be; paint, body panels, engine rebuild etc etc are covered under the lease provision as pre tax deduction on your income. Off to speak with my accountant on whether trusts can qualify as the 'associate'

For all the bike afficiandos this company is currently running a test case with the ATO to allow bicycles as a salary packaged item.

[Michel]

Associate lease - classic car

attached is the article from Auto Business Solutions

[Michel]

leasing a 120Y

further info

[Fishcop]

For all the bike afficiandos this company is currently running a test case with the ATO to allow bicycles as a salary packaged item.

Something I've argued for a long time. They want a "green" planet, but give tax concessions on polluting items...

[Michel]

Expectinig to hear back form Rmunerator in next couple of weeks re: ATO's position on bicycles.

It also seems that Remunerator pioneered the ATO ruling on Resto costs (read replacement costs) being deductible as a running cost of the vehicle.

Michel

[IXXI72]

Do I get this right? - You are paying big money (Tax deductable or not) for a resto on a car which you do not own?

Am I missing something?

[Michel]

With an associate lease for instance a family trust can own it, or your daughter grandfather etc etc even an ex wife if you so share such a post nuptial friendship...

So you own it via some 3rd party relationship. Like any lease you opt to own it at the end of the period by paying an agreed balloon - an advantage here according to the Remunerator is that the costs for the resto become deductible as a running cost, same for depreciation etc.

So perhaps works for some not all if you are spending money on your car.

BTW motorbikes do not allegedly attract FBT.