renting a laptop

sgermein · 29th September 2007, 6:33 PM

Hi everyone,

(firstly sorry if this is in the wrong thread) I know this topic has been discussed on this forum but I was hoping to get some opinions on my situation.

Basically I need a laptop for work, looking to spend around 2500k, I'm not registered for GST as I don't make over
$70 000 per year.

I had a small chat with my accountant about the tax benefits but to me they don't seem any better then claiming depreciation on the machine.

I did some sums using this calculator

http://www.flexirent.com.au/business...alculator.aspx

and considering I am still in a fairly low tax bracket any saving seems to be minimal and as such I feel it would be better to buy it outright and claim depreciation.

I guess though I haven't taken into account the ability to upgrade and such.

Does anyone have any thoughts regarding whether is worth it or not?

SSJX · 29th September 2007, 6:43 PM

straight off, renting/flexirenting/whatever you want to call it always costs more than buying outright in the long run

hence it's probably better to buy outright, claim depreciation as you mentioned, and when you don't need it anymore sell it off on ebay or here.

bigheadache · 29th September 2007, 11:04 PM

If you have the capital, then its best to buy and just depreciate. often times, a business doesn't have alot of capital (or has better uses for capital such as buying stock or advertising) but has good cashflow - in that case its best to finance/lease.

Diesmile · 29th September 2007, 11:53 PM

in general, u pay twice as much for renting compare to buy outright.

sgermein · 30th September 2007, 11:08 AM

thanks guys!

pretty much what I had been thinking so its good to hear you guys agree.

Cheers

Sam

2xCPU · 1st October 2007, 3:33 AM

A novated lease is the way to save money on a laptop.
As mentioned above, you pay more than buying it outright, but your paying with pre-tax income.

2.

sgermein · 1st October 2007, 7:25 AM

hi 2

thanks for your reply.

Sorry if this is a stupid question but is a novated lease similar to salary sacrifice??

2xCPU · 1st October 2007, 8:03 AM

As I understand it, yes it's the same thing.

2

collector1939 · 1st October 2007, 3:07 PM

Flexirent'ing is a ripoff, it prays on the people who cannot afford to pay for something outright, as others have mentioned you pay basically double the value of the item and you have to give it back at the end of the 3 year term.

One of the benefits they promote is you can buy the item at the end of the term, friend of mine had a laptop worth around $4k at the beginning, paid over $8k in load repayments then flexirent wanted nearly $1k for sell the laptop out at the end.

You are better off to get a laptop on interest free at somewhere like harvey norman and pay it off before the Interest free period is over.

daffy · 2nd October 2007, 6:18 PM

Quote:

Originally Posted by collector1939

Flexirent'ing is a ripoff, it prays on the people who cannot afford to pay for something outright, as others have mentioned you pay basically double the value of the item and you have to give it back at the end of the 3 year term.

One of the benefits they promote is you can buy the item at the end of the term, friend of mine had a laptop worth around $4k at the beginning, paid over $8k in load repayments then flexirent wanted nearly $1k for sell the laptop out at the end.

You are better off to get a laptop on interest free at somewhere like harvey norman and pay it off before the Interest free period is over.

Agree, i went with this stupid option and i'll give it back next february. having said that the laptop is still going strong almost 3 years later.

Kyl3 · 2nd October 2007, 8:01 PM

OP... You could try using certegy ezi pay.. I've used it twice now through www.bestdeal4u.com.au and had no issues

Laggy7 · 3rd October 2007, 4:36 PM

renting isnt as bad as it sounds, if you want to upgrade every year and get the latest and greatest its a good solution, if you want to own a lappy buy one outright. work/tax pays for mine and i get a new lappy each year with renting and i couldnt be happyier.

-Nathan

Jeffo · 3rd October 2007, 5:03 PM

I also did the flexirent option on my current laptop was around $3500 when i got it, almost paid back $5000 for the 3 years however i said i wanted out and they said if i paid back the final year of payments all at once they would let me keep the laptop. Seriously their contracts are water tight there is no way out. Also don't bother with the insurance for it if you do. I got a crack in the case for the screen wasn't anything bad and didn't affect the screen however they said that i could fill out the application form for the insurance to get it fixed, however i also had to send in a processing fee of $200 and it would take 6-8 weeks to get repaired.

Tony · 6th October 2007, 10:39 AM

if you can't afford like $1k for a laptop you need to reassess your business plan.

sgermein · 6th October 2007, 11:17 AM

errr did you read my first post?? Clearly states I was looking to spend around 2.5k and I was thinking buying outright was the best option but just wanted to hear some others thoughts.

Laptop has been bought so this thread can be closed. Cheers for all the input btw.

29th September 2007, 6:33 PM	#1
sgermein Member Join Date: Feb 2004 Posts: 204	renting a laptop Hi everyone, (firstly sorry if this is in the wrong thread) I know this topic has been discussed on this forum but I was hoping to get some opinions on my situation. Basically I need a laptop for work, looking to spend around 2500k, I'm not registered for GST as I don't make over $70 000 per year. I had a small chat with my accountant about the tax benefits but to me they don't seem any better then claiming depreciation on the machine. I did some sums using this calculator http://www.flexirent.com.au/business...alculator.aspx and considering I am still in a fairly low tax bracket any saving seems to be minimal and as such I feel it would be better to buy it outright and claim depreciation. I guess though I haven't taken into account the ability to upgrade and such. Does anyone have any thoughts regarding whether is worth it or not? __________________ EOS 300d//efs 10-22//ef 50mm f1.8 I have traded sucessfully with//locopano//bubbablair//almira//anthony256//nighthawk

29th September 2007, 6:43 PM	#2
SSJX Member Join Date: Apr 2006 Location: Sydney Posts: 2,746	straight off, renting/flexirenting/whatever you want to call it always costs more than buying outright in the long run hence it's probably better to buy outright, claim depreciation as you mentioned, and when you don't need it anymore sell it off on ebay or here. __________________ Good Trader list: click here 164 unique users and counting Add your PSN ID to OCAU's Wiki Sony Vaio Club Member #2

29th September 2007, 11:53 PM	#4
Diesmile Member Join Date: Feb 2004 Location: Adelaide Posts: 1,008	in general, u pay twice as much for renting compare to buy outright. __________________ GB MA770-US3 \| AMD Phenom II 720 \| Team Xtreem Dark 1066 2*2GB \| HIS 4780 512mb \| TOPOWER 500W EPS

30th September 2007, 11:08 AM	#5
sgermein Member Join Date: Feb 2004 Posts: 204	thanks guys! pretty much what I had been thinking so its good to hear you guys agree. Cheers Sam __________________ EOS 300d//efs 10-22//ef 50mm f1.8 I have traded sucessfully with//locopano//bubbablair//almira//anthony256//nighthawk

1st October 2007, 3:33 AM	#6
2xCPU Member Join Date: Jan 2005 Location: uk Posts: 1,347	A novated lease is the way to save money on a laptop. As mentioned above, you pay more than buying it outright, but your paying with pre-tax income. 2. __________________ Wanted: Naked GPS and HP-IB interface If "building a computer" doesn't involve powertools, your just assembling spare parts. ---- The universe is made up of atoms and empty space, the rest is mere opinion. Democritus, 400 BC.

1st October 2007, 7:25 AM	#7
sgermein Member Join Date: Feb 2004 Posts: 204	hi 2 thanks for your reply. Sorry if this is a stupid question but is a novated lease similar to salary sacrifice?? __________________ EOS 300d//efs 10-22//ef 50mm f1.8 I have traded sucessfully with//locopano//bubbablair//almira//anthony256//nighthawk

1st October 2007, 8:03 AM	#8
2xCPU Member Join Date: Jan 2005 Location: uk Posts: 1,347	As I understand it, yes it's the same thing. 2 __________________ Wanted: Naked GPS and HP-IB interface If "building a computer" doesn't involve powertools, your just assembling spare parts. ---- The universe is made up of atoms and empty space, the rest is mere opinion. Democritus, 400 BC.

1st October 2007, 3:07 PM	#9
collector1939 Member Join Date: Sep 2002 Location: Australia Posts: 35	Flexirent'ing is a ripoff, it prays on the people who cannot afford to pay for something outright, as others have mentioned you pay basically double the value of the item and you have to give it back at the end of the 3 year term. One of the benefits they promote is you can buy the item at the end of the term, friend of mine had a laptop worth around $4k at the beginning, paid over $8k in load repayments then flexirent wanted nearly $1k for sell the laptop out at the end. You are better off to get a laptop on interest free at somewhere like harvey norman and pay it off before the Interest free period is over.

2nd October 2007, 8:01 PM	#11
Kyl3 Member Join Date: Jul 2005 Location: Penrith Posts: 2,631	OP... You could try using certegy ezi pay.. I've used it twice now through www.bestdeal4u.com.au and had no issues __________________ \|www.kylesharp.com.au\|

3rd October 2007, 4:36 PM	#12
Laggy7 Member Join Date: May 2005 Location: adelaide Posts: 251	renting isnt as bad as it sounds, if you want to upgrade every year and get the latest and greatest its a good solution, if you want to own a lappy buy one outright. work/tax pays for mine and i get a new lappy each year with renting and i couldnt be happyier. -Nathan

3rd October 2007, 5:03 PM	#13
Jeffo Member Join Date: Dec 2002 Location: Brisbane Posts: 666	I also did the flexirent option on my current laptop was around $3500 when i got it, almost paid back $5000 for the 3 years however i said i wanted out and they said if i paid back the final year of payments all at once they would let me keep the laptop. Seriously their contracts are water tight there is no way out. Also don't bother with the insurance for it if you do. I got a crack in the case for the screen wasn't anything bad and didn't affect the screen however they said that i could fill out the application form for the insurance to get it fixed, however i also had to send in a processing fee of $200 and it would take 6-8 weeks to get repaired. __________________ You have been reported by a anonymous user that you need to get a clue, please called 1800-free-clues for details !!

6th October 2007, 10:39 AM	#14
Tony Member Join Date: Jun 2001 Location: Sydney, NSW, Australia Posts: 9,915	if you can't afford like $1k for a laptop you need to reassess your business plan. __________________ "Nowadays things are completely different, and auto makers are much more global in structure. Its difficult to see ANY new car these days as the product of any one company or country. There are honourable exceptions that prove this rule though. The R32, R33 and R34 series Skylines were the babies of an intensely focused faction inside Nissan, a group who still feel their heritage & family tree come from the Prince regime of ex-aircraft engineers who were really serious about racing and making great cars. Sadly, this group now seems to be feeling pressure to change." I drive a stock R33 non turbo automatic Skyline - 120kW at the wheels! OCAU Nissan Skyline Club Member

6th October 2007, 11:17 AM	#15
sgermein Member Join Date: Feb 2004 Posts: 204	errr did you read my first post?? Clearly states I was looking to spend around 2.5k and I was thinking buying outright was the best option but just wanted to hear some others thoughts. Laptop has been bought so this thread can be closed. Cheers for all the input btw. __________________ EOS 300d//efs 10-22//ef 50mm f1.8 I have traded sucessfully with//locopano//bubbablair//almira//anthony256//nighthawk