Canna Campbell

other than a lifestyle one.

But you're playing with your adjustable taxable income.

So your employer, because you're now packaging a car, can only pay super, the 12% super guarantee, on your reduced salary.

So say I'm earning $50,000 a year and I go and package a $10,000 a year car and

So $10,000, I'm now being taxed at $40,000 a year.

My employer only needs to pay 12% on the $40,000, not on the $50,000.

So I'm actually now jeopardising what's going into my superannuation and therefore there is a consequence or a repercussion to my final superannuation account balance.

Did you know that?

And same issue could increase your HECS debts as well.

Not increase your HECS debts, sorry, increase your HECS repayments, the minimum repayments.

And also if you qualify for any sort of subsidies like childcare, it can also impact that as well.

Yeah, so you would need to factor into your budget to have like a regular savings plan over the course of your agreed term.

And they would give you a figure as to what the balloon payment would be.

So you know in advance, you know, I'm going to have a $20,000 balloon payment in, you know, 2029.

And you would want to save up for that so that when that comes, you can pay off the car, the balloon payment, and then obviously you get to keep the car.

But as I said, some people like to refinance this.

They'll take out the remaining balloon and turn it into another lease.

Or a lot of people get caught into this trap, I'm going to say, where they end up just trading the car and getting the latest model.

Good question.

I think it obviously would come down to the terms and conditions and the fine print, but I believe it's fixed in the contract.