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Salary sacrifice a new bike?

Discussion in 'General Motorcycling Discussion' started by UserInterface, Jul 26, 2011.

  1. Hey guys, I have just found this forum and was hoping that you could give me some advice.

    I have just gone and grabbed my L's the other weekend and wish to buy a new bike. I am looking at the Yamaha R15 for about $4800.

    Would anyone know if it is possible to do salary sacrifice for a new bike?

    I am not really sure how this works, I just do not want to make another credit application (for other reasons) and was hoping that I could get work to pay for it and then they can take out $500 a month..

    Could you guys please help me fill in the blanks here, I don't even really know if this is how salary sacrifice works.

    Thanks heaps for any help!!
  2. pretty much thats how it works.. but your work has to be willing to do this... whats to say they agree to do it and you leave the company the following week ??
  3. Ah good thought, but it's not much they would just nick it from my severence pay i think..

    So do I just ask work and if they give the OK I assume that they would know how to do it all?
    It's a fairly large construction company (NSW\VIC\ACT\QLD) so am hoping that they will play nice..
    I was really not sure if it had to be a work related expence, like a computer or some such (i'm in I.T.)
  4. I imgine it would be the same as it is for a car?
    I found it easier to actually purchase the car, then got my employer to 'buy' the car from me (they'll only pay red book rates). I worked out what it would cost per year in fuel, maintenence, rego etc, and paid a certain amount out of each pay. I still pay for fuel by using a Mobil card, but I don't pay GST.

    Step 1: Check with your employer what your actual benefits are and if they'll allow you to buy a bike. If they buy the bike then they may only have contracts with one or two brands.

    Step 2: Work out cost of fuel, servicing/maintenence, tyres and running costs per year. Also estimate how many km's you're likely to do as this can affect level of benefits.

    Step 3: Go to your pay office & get some dummy payslips done so you can see how your payments affect the bottom line. you'll obviously need enough left over for rent/mortgage etc.

    That'll get you started. I've always said that you should salary sacrifice as much as you can as it really is money back in your pocket instead of the tax man!
    • Like Like x 1
  5. Excelent! thanks for your help guys..

    Just hope they play ball now...
  6. They'll play ball don't worry. Salary sacrifice is as good for them as it is for you.
  7. Why is it good for the employer?
  8. You will actually probably find resistance - most novation companies won't do it because it is a little 'different' or believe that you can't do it. (A bike is classified as a 'vehicle other than a car' for tax purposes and structured correct you won't pay FBT on private use :wink: )

    And your employer won't buy the bike. They don't have anything to do with it except paying one monthly amount for the costs/lease.

    You lease the bike through a financier, which is organised by a novation company who then novates (transfers) the lease to your employer for the period of your employment.

    If you leave employment, the lease continues in your name direct to the financier, not your employers. The novation company then fallls by the wayside as unnecessary. No payout needed.
  9. I get it now. Thanks froggy
    I was thinking that the employer just gave you a kind of loan. Like they put $5000 in your account then over the next few months they deduct X amount from your wage till it is repaid.

    My issue with getting finance is that I shot myself in the foot by applying for credit to many times, whist trying to consolidate my finances last year. :(
    This has nothing to do with how much I earn or have left after living costs, just that I will get rejected if I try to apply for credit based on this one premises.
    Though I have put it all into one place now, which is why I can afffored to buy a bike now, but...

    I know that bikebiz will try to put the bike over 5 years so that I only have to pay $20 a week, but I think that I will still get rejected based on the former reason..
    I assume that salary sacrifice will be out of the question for this same reason as well..
  10. It's good for the employer for some tax reason. But I would suggest you go to them & see exactly what their scheme is & work around that.

    Different industries offer different schemes & benefits some good, others not so good. Me, I work for a non-profit so I can take FULL advantage and sacrifice more than other idustries.

    Confusing as hell, but if you can do it, then I reckon go for it. For me though it's not like taking a loan out & paying your employer back. I basically 'own' my car & stll pay for running costs, fuel etc, I just don't pay GST.

    It's not free money, just a better way to spend it.
  11. Get a copy of your credit history and find out for sure.

    It is free at www.mycreditfile.com.au and takes about 10 days to come. I check mine every year or so (for personal checks on your own name these don't appear to lenders - also keeps an eye on identity theft)
    • Informative Informative x 1
  12. I really don't get why having an application for credit refused affects your credit rating. You haven't failed to pay anything on time, you haven't caused any credit company any troubles, and yet your credit rating gets altered negatively? Absolute bollocks IMO. I mean, all you've done is basically ask them: "Will you give me credit? I earn x per y and I own z" And they've said "No sorry, we won't tell you the reason why we won't give you credit, but since you asked, we are going to give your credit rating a hit." Why???
  13. I’ve never heard of this before but the Army did an interest free loan for my bond & a month’s rent in advance when I moved off base, they just recover it from my pay over the next year.
  14. I have been saying that to my creditors, but suposedly its how they all operate..
    Stupid if you ask me to..
    I have had a loan in one way or another since I was 17, and never defulted.. you think that would be good enough..
  15. i wonder if I joined the army if they would give me an interest free loan for a $1000 staintune exhaust
  16. I wonder if they'd have you.
  17. I don't see a free option here, am I missing something?
  18. When you apply for credit it only show's is that you applied it dosn't say whether or not you got declined or took on the loan....When you have say 5 application's within a year it tend's to put the alarm bell's on for lender's maybe said person has all these loan's and chasing their own tail etc...The only other thing that show's is a default....
  19. Ah ok, thanks for clearing that up