Ask Paul: Should I lease a car or buy it outright?
I'm 60 and the sole income earner. I work for a not-for-profit and have salary packaging.
My husband has no income and received a small inheritance - enough for a new mid-range car with a little left over.
We've been on one income all our lives, paid our mortgage and have no debt.
Raising five kids, we always just managed.
My salary package has offered a novated lease on a new car, but the deductions would not leave enough to pay bills.
Am I better off leasing or buying outright? I have five more years before retirement. - Lorral
Well, Lorral, if a novated lease would not leave you enough money to pay the bills, I am pretty sure that can't be a great idea!
Cars fit into my "necessary evil" category. Most of us need one for work, kids and our lives but, goodness, they are cashflow eaters. Personally, I'd be buying a low-cost, cheap-to-maintain, reliable secondhand car and spending as little of my money on it as I could.
My suspicion is that working for a not-for profit, your salary will have you in the lower tax scales.
You can check this online easily and see what benefit there is in a novated lease, but without knowing your exact package, I am pretty sure that a cheap secondhand car bought outright may be your best option.
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