Hi lana.graham, how can we model car lease through remserv? Thank you.
Hi eliana.gonzalez ,
Such an innocent looking question, yet oh so deadly and detailed!
Yes its about time we wrote a guide on this. I do love a complex model, so I'm going to attempt a quick and dirty guide for you below.
I don’t know about Remserv, but I assume it would be similar to this example have from sg fleet. I’ve highlighted all the important details below.
Quick outline of steps:
- Enter client salary of $89,000, however note that for the car lease scenario, some will be pretax, ie:
- Model $257.50 pf as tax free income, ie $6,695 pa
- Model the rest as taxable income, ie $82,305 pa
- There’s no need to model a fringe benefit as the post tax contribution offsets the FBT obligation.
- You would need to end this after 5 years and then model it without the pre tax income.
- Don’t forget to adjust your super guarantee to include the pre tax income.
- Enter Lifestyle Asset/Car purchase $47,000
- For Financing enter:
- New 60 month loan for $42,728, interest rate 8.62%, repayments $718.50 pm ($8,622 pa).
- Remember there will be a residual. Go to the display page for the loan and enter a lump sum repayment of $13,221 at the end of the 5 years.
- The upfront GST saving of $4,272. Enter this as a once-off tax free income at the start of the lease.
- Now you need to model the other costs. They total $619.04 per fortnight ($16,095 per annum). We’ve already modelled the lease repayments, so now we just model the other Vehicle costs, which will be $16,095 - $8,622). So enter Post Tax Vehicle expenses of $7,473 pa.
Please give that a whirl and come back to me with any questions - we may need to fix up a detail or 2.
- tyler.stephens4 months agoCurious Observer
Hi Lana,
Any chance you could provide screenshots for these steps please!? Sorry, I know it will be a pain, but will be so helpful!
Thanks so much.
- rainier.reyes4 months ago
Advisely Team
Thanks for your question tyler.stephens. Just tagging lana.graham in case it's buried in this massive thread!
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