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Novated lease for e bikes!

Posted: Tue Oct 25, 2016 8:15 am
by VeloGiro
Just found out about a start up company which is looking at novated leases for ebikes! Terrific idea - a sustainable transport option that might get people fit in the process...hope it succeeds

http://www.e-stralian.com.au/

Re: Novated lease for e bikes!

Posted: Tue Oct 25, 2016 9:22 am
by Calvin27
Is the tax treatment identical to cars?

Re: Novated lease for e bikes!

Posted: Tue Oct 25, 2016 11:21 am
by Aushiker
An interesting development. Thanks for sharing.

Re: Novated lease for e bikes!

Posted: Tue Oct 25, 2016 3:59 pm
by VeloGiro
Calvin27 wrote:Is the tax treatment identical to cars?


As i understand its exactly the same deal - pre tax payment over an agreed term...

Re: Novated lease for e bikes!

Posted: Tue Oct 25, 2016 7:57 pm
by bychosis
How many kms do you need to do? Does it include fuel, tyres and servicing? :twisted:

Re: Novated lease for e bikes!

Posted: Tue Oct 25, 2016 8:49 pm
by Calvin27
bychosis wrote:How many kms do you need to do? Does it include fuel, tyres and servicing? :twisted:


Lol it woul be funny coming up to dec and needing to hit another 10000kms!

Re: Novated lease for e bikes!

Posted: Tue Oct 25, 2016 9:31 pm
by trailgumby
I'll probably get roasted by those who don't understand how money works, but I'll take that risk in the hope of providing some education that might just change someone's life and free them from debt slavery.

This is just another way for someone to put a financial vacuum cleaner in your hip pocket. Using debt to finance lifestyle choices is never a good idea - compound interest works against you to multiply your outgoings and keep you pinned, working to make other people rich.

If you want to be financially independent it is something you should never do - only buy what you can afford to pay for in cash. The only good debt is that which someone else pays you to have - eg, investment or business finance.

A population-based study of the average financially independent american and how they got there:
https://www.amazon.com/Millionaire-Next ... 1589795474

The classic book on slow, sustainable financial independence:
http://www.ccsales.com/the_richest_man_in_babylon.pdf

Re: Novated lease for e bikes!

Posted: Wed Oct 26, 2016 3:33 am
by eldavo
A good mini-series with hooks to trailgumby's post.

http://www.abc.net.au/tv/programs/men-w ... -us-spend/

If you're young and fresh enough to do it, try paying your rent or testing your first mortgage in cash before signing up.
Gypsy RV living may be more comfortable than the mental trauma of this challenge.

Re: Novated lease for e bikes!

Posted: Wed Oct 26, 2016 6:53 am
by bychosis
I looked at the link. Includes servicing, roadside assist, insurance, a free cycling training course! So many benefits!!!! Didn't see whether it comes with steak knives. The numbers for a sample lease were low-ish, but it doesn't tell you the total cost of the bike (and extras).

When I looked at a lease for a car a while back the residual worried me a bit, not to mention being locked in. I can see how a lease including servicing, tyres etc would work for some for a car, having locked in $/month knowing exactly how much it will cost. That way you can max out your payments for a flashier car with no surprises (yeah, annual rego is a surprise for some).

I can't see how the 'benefits' of leasing an e-bike would outweigh saving for a few months to buy one outright. Servicing, roadside assist and insurance for a bike isn't a big enough cost on top of that to warrant the extra fees of a lease.