All posts tagged: Cars

Novated vs Associate Lease?

November 6, 2017 JBS Salary Packaging Salary Packaging, Uncategorized No comments

We often get clients ask us which type of lease is better, a Novated Lease or an Associate Lease? The simple answer to that question is “it depends”. It depends on your financial and personal situation.

A perfect example just occurred recently when I had to run through this exercise with a potential client. He was interested in both an associate lease and Novated Lease, but more importantly he wanted to know which one would be more beneficial to him. After running through both options with him he was amazed at how a model such as an associate lease will suit him better compared to a novated lease.

The easiest way to explain the differences between an associate lease and novated lease is as follows;

An associate lease is an agreement which is taken out between the employee and their associate with the approval of the Employer (Your Partner or family members over the age of 18).

The Associate rents their vehicle to the person who is salary packaging. The objective is to get the benefits of Salary Packaging and the associate get the opportunity to write off the vehicle against their tax by claiming the depreciation of the vehicle and if there is a loan they also get to claim the interest. (Associate Lease works well if the Associate earns under $35,000 per year due to the tax benefits that are available.) We recommend that you check with your accountant before proceeding.

The way I had it explained to me is:

– An Associate Lease essentially means you are your own bank. (You finance the vehicle through your own assets. I.e. redraw on your home loan), or you may already own the vehicle or pay cash for it.

– A Novated lease on the other hand is financed via a third party (bank or financial institution).

So if you have the facility to finance your own vehicle in your associates name then an associate lease will be the right way to go. If this cannot be achieved then the Novation is better for you.

If you have a vehicle without a loan, then the Associate may possibly be better option for you. If you plan on buying a new car then in most cases the Novated Lease will be better for you. Both options could be beneficial for you depending on your personal circumstances. At JBS Salary Packaging, we will provide you with the best possible outcome that puts more money in your pocket that is for sure.

Benefits for the employer

It makes sense that all employers take advantage of Salary Packaging as they too benefit as the GST paid by the employees is passed to them in a way of the employer claiming this against their BAS Statements, assisting in reducing the employer’s tax liability as well.

Remember to always discuss your options with one of the team at JBS Salary Packaging to ensure it’s the right decision for you and seek professional advice!

Preparing your car for holiday driving

December 1, 2016 JBS Salary Packaging Cars No comments

Christmas is always a busy time of the year and many of us enjoy a holiday even if only for a weekend. There are some important checks that you should do before heading off on your break to ensure the safety of your family.

car – Check under the bonnet and top up everything as needed: power steering fluid, windscreen washer fluid, engine oil, transmission fluid, brake fluid, radiator coolant, etc. If you don’t know how to do this, might be best to drop past a service centre for a quick fill
– Make sure your windscreen wiper blades work well, leaving no streaks on the glass. Replace them if unsure. You can buy windscreen wiper at any automotive store and they will have a manual to tell you which ones to purchase for your particular car’s make and model
– Check on the car battery for corrosion, and cleanliness
– Check that all lights are all working – dashboard, turn signals, headlamps, high beams, hazard lights, etc
– If towing, check the electrical connectors and make sure that all lights and brakes on the vehicle that you will be towing are working well
– Make sure all of your tyres are wearing well and that they are pumped up to the manufacturer’s tyre pressure level. This includes any spare tyres
– If you have child seats, check that they secured properly and cleaned. Seats may wiggle lose over time so it’s always a good idea to check them
– Get your car serviced and checked by an authorised service centre a few weeks before you head off. It’s always best to get a professionals opinion and your car is no different
– Many forget but wash your car before heading off. This will ensure all windows are clean and clear giving you the best visibility for driving
– Ensure you have emergency gear in your car such as road reflectors, torches and water…just in case

We would love to see your holiday snaps, especially with your packaged car. Let’s see how far our cars travel this year.

End Of An Era

November 7, 2016 JBS Salary Packaging Cars No comments

In October, we saw the very last Australian-made Ford roll off the assembly line at the Broadmeadows plant. What a sombre day for workers but it should also be for all Australians!

The Geelong factory opened in 1925, building both engines and vehicles but changed to engine and metal stamping in 1959 when the Broadmeadows plant was opened. In 1994, the NSW plant closed seeing the production of the locally made Ford Capri cease. In 2007, Ford announced that they would be closing their Geelong plant in 2010, however later cancelled the decision and instead upgraded the plant so that the engines produced would meet strict European standards.

In 2013, Ford again announced it would close its Australian manufacturing operations in 2016 and this time they meant it, after suffering a $141 million loss over the previous financial year. This would also mean the loss of jobs for around 1,200 workers.

In a nice gesture to both Geelong and Broadmeadows communities, the official homes of Ford, they will be auctioning the last saleable cars built at the plants with the proceeds being donated to local schools in both areas. The final vehicles built will not be sold but rather will be put on display.

car Dick Johnson, three-time Bathhurst winner and five-time Australian Touring Car champion has expressed his disappointment at the closure of Ford, and other Australian car manufacturers. Talking at Bathurst this year he was quoted as saying “For today to be qualifying for the Bathurst 1000, and to be the last Falcon to roll off the production line, it’s a date we won’t forget that’s for sure, albeit very sad.”

While there is $66 million provided in support for sacked workers, many are still struggling to find alternative employment. This is due to the need for their very specific skill sets in metal casting being almost redundant given that the majority of the automotive industry in Australia is closing, with Holden and Toyota also closing down vehicle production in 2017.

So it’s anyone’s guess what will happen from here in relation to car prices. Some are saying that with no manufacturing in Australia the prices will increase with the expense of importing and others believe that it will open the Australian market up to further competition and our exchange rate will also play into it. Either way, it’s sad to think that our kids wont have the option to buy an Australian built car but rather might be zipping round in a cheap import.

Second Hand Cars

July 13, 2016 JBS Salary Packaging Cars No comments

Novated leases aren’t just for new cars. If you’re thinking of getting a second hand car you can package it as well. The only real rule when it comes to including a second hand car in your salary package is that it should not be older than eight (8) years old at the completion of the lease. There is no restriction on where you can purchase your car, giving you the freedom to purchase from a private seller or a car yard.

If you are considering a second hand car purchase for your package, here are a few tips to think about:

Time
When buying second hand, it may take you longer to find the right one or you may have to compromise. Write a list of things you want in your car and divide them into ‘must haves’ and ‘would likes’. This way, you won’t be swayed by a lower price, quick sale or other salesman tactics.

Research
Do your research – this means, check reviews and google search the make and model of the car. See if there are repeated reports that it’s a lemon and maybe steer clear. In addition to general research on the vehicle type, do proper research on the actual car you’re looking to buy. Ask to see the service history book, do a check through your states registry websites on the details of the car, including VIN or Engine numbers or you may want to pay someone to do a proper full history on your car from websites like vehicle history.

Mechanical Checks
Make sure you get a full mechanical check of your car, and by someone you organise. There are mobile services that will come to you or alternatively get your personal mechanic to give it the once over. While a second hand car might be cheaper initially, it could end up being more expensive in the long run.

Include additional spending in package
One of the benefits of buying new is the limited need for major repairs. Make sure you take the history and age of the car into account when determining your additional spends on the car for your packaging purposes. For example, you may need to increase your servicing costs or add a provision for new tyres. When buying second hand, you need to be more diligent with the process. There are generally no warranties or guarantees and you could end up paying more than you would for a new car if you make a mistake. But if you do your research and get it right, you can enjoy your car and still get a tax saving along the way.

Top 5 Ways to have a Car Accident

May 2, 2016 JBS Salary Packaging Cars No comments

A few weeks ago and I stumbled across a survey from AAMI, which covered 3,700 people that had lodged claims for insurance and found that the top 5 claims were due to:

In the survey, many of the drivers indicated that they had changed their driving behaviours after they had been involved in an accident, with 45% saying they now drive slower and 25% of drivers upgrade their car to a safer one.

My Top 5 Ways to Avoid an Accident

1.    Plan your trip and make sure you are well rested before you drive
2.    Be comfortable and relax when you drive
3.    Allow plenty of time for the journey
4.    Listen to the radio for possible delays along the way
5.    Be alert as to what is happening around you.

It is my belief that these accidents can be avoided or reduced dramatically just by doing a few simple things.

Reduce Speed – most people would know that speed is one of the major factors that cause road accidents;
Use good time management – if it’s important, then leave at least 15 minutes earlier as it’s better to get there early than to speed or drive in an unsafe manner to get there on time or worse, never make it. When you’re running late stress builds up, blood pressure increases, you get distracted easily, and become more anxious;
Get a good night sleep – being well rested means that you will have good reaction times and increases your concentration. This would ensure safe driving but also the ability to take evasive actions if others are not so alert.
Reduce Distractions – things like phones, loud music or even conversation can sometimes be distracting. Try to reduce distraction and just concentrate on the job at hand – driving!

Understand that driving is a not a right, it is a privilege and we need to respect the road and other road users.

Let’s do our part to make our roads safer.

Source: AAMI Crash Index 2014

Car Review | Commodore V8 – SSV – Redline

March 16, 2016 JBS Salary Packaging Car reviews, Cars, Salary Packaging No comments

Last of an Australian Icon – Commodore V8 – SSV – Redline!

This is your last chance to drive or buy a rear wheel drive Aussie V8 with Ford ceasing production later this year and Holden at the end of 2017!

Holden has left the best V8 fittingly to their last version of the Commodore V8! The power output, standard safety features and creature comforts sets a new bench mark for Australian built vehicles.

If you are interested in purchasing a new vehicle please contact our team today.

I hope you enjoy the video as much as I enjoyed making it for you all to watch.

Thank you for watching ; and happy and safe motoring to you all

Rain Proof Your Windscreen

March 15, 2016 JBS Salary Packaging Cars No comments

JBSSP Car manufacturers suggest replacing the windscreen wiper blades every three months and they also recommend having a spare set in your boot. Using a product called Rain X or similar every few weeks can help minimise the work of your wipers by causing water to bead off the windscreen and in light rain make the wipers unnecessary.

Available in most automotive retailers.

What is my car worth?

March 1, 2016 JBS Salary Packaging Cars, Salary Packaging No comments

This is a common question. Usually there are a number of factors when determining what a car is worth however value and sale price can have little to do with each other depending on how you intend on getting rid of your vehicle.

Selling your car usually makes you reflect on the day you first purchased it; whether it was financed or if it was paid for with your hard earned cash. If you still have finance over your car or if you own it outright will also impact on what you do next.

Motor vehicles are generally one of those items you buy that depreciate in value the moment you drive it out of the dealership. Unfortunately, there is very little you can do to add value to the car.

If you intend on selling privately, it’s a good idea to know your stuff. Check out your competition on other sales platforms – used car yards, sales websites like car sales or trading post show the current prices that cars are selling for or redbook can help with giving you a guide on the value of your car, or even just drive around your neighborhood as there’s usually a few sitting on the side of the road with the big ‘FOR SALE’ sign in the window. Be realistic with your car and see the imperfections that might bring the price down. The next buyer doesn’t care that you bought it for $30,000 or that you spent $10,000 on it, they just want to buy the car as is at a fair price.

Car dealers, on the other hand, will always try to give you an embarrassing figure as a trade-in to make you feel down and disheartened. The car dealers are trying to win your business and to maximise their profits for the dealership by showing you that your current car isn’t worth anything but they can still put you in a brand new shiny vehicle.

Car dealers are looking for the work they have to do in buying the vehicle and then making it look good enough to sell it quickly. Don’t worry about fixing small issues before trading in as it usually has little bearing on the trade in value – remember, they have access to a lot cheaper parts and labour to get it looking great again. If you were to pay $100 to fix something, they could probably do it for only $20.

JBS Salary Packaging has a few tips to help maximise the value of your vehicle when it comes to sale time:
• Keep the car serviced as per the log book with the details up to date in the book
• Your registration needs to have about 6 months to go before it is due to expire
• Polish the car at least every three months as this will assist in removing any road contaminates eating into the paint work, but particularly when you are ready to sell
• Keep the interior of the car clean and fresh
• Minimise the number of kilometres traveled in the car, (ideally if you can do less than 10,000 km per year) the dealers will give a little more.

However you sell your car, make sure you are comfortable with the process and the price. Make sure all the paperwork is completed correctly and you retain a copy to ensure that you don’t end up with any speeding or parking fines on a car you no longer own.

One of the biggest tips when selling your car, particularly if privately, never let someone test drive your car without keeping something of theirs as collateral or identification to ensure they don’t just drive off with it. I’d suggest that if they drove to meet you, keeping their car keys and drivers license as a minimum.

If you have any questions about selling your car or you are looking at purchasing a new vehicle contact the team at JBS Salary Packaging for some great deals.

Learner Drivers

February 3, 2016 JBS Salary Packaging Cars, Salary Packaging No comments

I have children who are at various levels of driving experience and knowledge but more importantly very different attitudes towards driving on the road.

My son, who has just passed his learners permit, thought it was easy. We jumped in the car and went through the basics; accelerator to make it go, the brake to stop, the indicators to turn. Right, we are ready to go. His first words were “where does the key go?”. With that sorted, I said “lets go” then all of a sudden the motor starts screaming. He wondered why it wasn’t going as he just assumed it was an automatic. I realised then that there is so much to teach a learner driver and it is up to us, as full licence drivers to teach them if we want them to be competent and safe drivers.

Five Tips to Driving you might want to impart on your learner driver …

– Always do head checks and mirror checks to know where other vehicles are around you. While you might not be moving into another lane or turning, it’s good to know your surroundings in case you have to take evasive actions in the event of an accident or trying to avoid an accident.

– While you might not know it, tyre pressure plays a major part in your driving. It can make your car pull to one side, drive slower and even cost you more in additional fuel consumption. Tyre pressure is not determined by the type or size of the tyre but rather the vehicles load or driving application. You can find the pressure details in the manufacturers tyre placard or the vehicles owner manual. Also, you should only ever check your tyre pressure when the tyre is cold.

– Some road rules are really unusual so try to learn as much about driving and the road rules as possible. Did you know that you can be fined $87 for parking over the footpath in a driveway (even your own driveway). In Victoria, you can be fined for leaving your car with the window down more than 2 centimetres – but Queensland gets 5 centimetres.
– Driving, especially while learning, shouldn’t be a fashion statement. Wearing the wrong shoes when driving can make it harder to learn and can even be dangerous. You should consider wearing flat soled shoes to allow you to better feel how the car responds to what you’re doing.

– If you’re doing your driving test, a quick tip that someone told me before I went for mine was to ever-so-slightly adjust your rear mirror higher just so you have to tip your head up slightly to see in it, rather then just moving your eyes. It ensures that the tester can see that you are doing proper and regular mirror checks.

There was an article recently released from the Roads Minister where he suggested the government were looking at rewarding young Victorian driver’s for safe driving. Those young drivers could be rewarded with a free three year licence worth $76 if they completed both their red and green probationary periods with no traffic offences or demerit points.There are also a number of free and government funded courses available for young drivers to help them practice their skills, gain experience and become safer drivers on our roads. Check out Vic Roads for more information.

Contact JBSSP if you have any questions or would like more information about learner driver courses.