I been thinking on our next car; a brand new semi-prestige car like Honda Accord and 2 year old prestige car like Audi A4 seems to cost quite same. If so, buying one of them on a fully maintained lease, which save on some tax, seems like a good idea. Any thoughts ?
Now that I have bought the car, an Audi A4 on the lease, I kind of understand how the system work. I think it is a wise thing to do, especially for those on higher tax bracket and drive to work thereby get max. benefit of Fringe Benefit Tax (FBT). With all tax and math, one would be paying only about 70% for the car. If the car is of good resale value, it can be bought back from lease company and sell on private sale and get onto another lease !!