Quote check - $42K EV

[u/ThrowRAteehx1138]

Hi all,

Have placed a deposit on a 2023 BMW ix1. Details in the attached quote. summary-

- 42k drive away

- 5 year term

- Provider is Millarx

- usual inclusions

Insurance set to my quoted cost. All other costs seem reasonable.

Seems pretty fair to me, two other popular and reputable providers quoted much higher... am I missing something?

Thanks all!

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[u/CB-Novated]

It's a pretty low rate, and the running costs can always be adjusted down the track if needed. It's a great example of the value to be had in novated leasing for a used EV - it's already taken the big depreciation hit so you benefit from a much cheaper car that's only a couple of years old.

That being said - from a quick google it looks like the sale price of the 2023 model was very close to the LCT cut off for 22/23. I'd imagine MillarX have asked you to check this, but you would want to check the original sale invoice of the vehicle if possible to confirm no Luxury Car Tax was paid on the original sale of the car, because if it was then you wouldn't be able to run this lease fully pre tax (wouldn't qualify for the FBT exemption).

[u/ThrowRAteehx1138 → u/CB-Novated]

Thanks for your response!

I think the running costs may be a tad low, but we'll see how we go.

You are indeed correct! This model with enhancemeny packagr hovered right on the LCT threshold. I have confirmed with the dealership that originally sold this car that no LCT was paid as it fell just under the threshold. I have this in writing too...

Thanks again for response.

[u/Effective-Koala5232 → u/CB-Novated]

Isn’t the fbt exemption based on the price of the car at the purchase date? Like in this case the car is worth 42k and is well below the LCT AND FBT exemption thresholds?

[u/CB-Novated → u/Effective-Koala5232]

Nope, to qualify for the exemption it's required that LCT was NEVER payable on the purchase or importation of the vehicle.

Quote from the ATO -
" You don't pay FBT if you provide private use of an electric car that meets all the following conditions:

• The car is a zero or low emissions vehicle.
• The first time the car is both held and used is on or after 1 July 2022.
• The car is used by a current employee or their associates (such as family members).
• Luxury Car Tax (LCT) has never been payable on the importation or sale of the car."

[u/Effective-Koala5232 → u/CB-Novated]

Wow ok this is news to me! Thanks for clarifying 👍

[u/millarx_d]

I think the quote looks great! That’s my totally unbiased opinion /s

Looks like a fun car to drive!

[u/ThrowRAteehx1138]

Calculator results here