Hi,My friend dennis bennis has the option of salary packaging a...

Hi,

My friend dennis bennis has the option of salary packaging a car loan (approx $20K). My tax rate is mostly 17%, with some at 30%. Is it better to buy a car outright for cash (may get a discount) or is it better (financially) to get a car loan and pay the repayments from my pre-tax income. Are the tax savings going to be bigger than the interest repayments? There is a 5% fee to salary package.

Also, what would be the FTB implications?

I am grateful of any assistance.

cheers,
Mr. Toad.