It also saves on GST... some companies will also allow you to purchase your wifes car in this way as well. It can be attractive providing you were planning on spending the money anyway because of the savings. As Alpha said the issue can be that the car goes with you if you leave. Not necessarily attractive if you leave before you intend to. A company called Paradigm are offering all sorts of salary packaging of which this is a part. I think it is AGC finance that offer you fixed buy back price as well depending on kilometers and condition of car that be agreed to at sign up. If you do low k's then it can be of benefit because the balloon can be less than the outstanding amount which leaves you in the black after your lease period.
