Buying a car - advice needed please
- Thread starter Ali G
- Start date
Anyway, back to the originator of this thread, I think we have veered off course somewhat. I think the question was more about the ownership and financing structure to have the car in?
Cheers,
The Y-man
Seeing as he is working as a sole trader, the choice would probably be to either lease or HP the car.
I used to HP mine at the advice of the accountant, but I guess either one will be tax effective.
You can still do either with a sec/hand car, and as mentioned earlier, it will be a lot less of a hit on the pocket.
Going for a new one may provide more depreciation in the first couple of years, which will help towards minimising the tax bill, but you still need to come up with the monthly payments etc, and in the early years of a business cashflow is a critical factor.
Talk to your accountant as to which structure he/she recommends.
I used to HP mine at the advice of the accountant, but I guess either one will be tax effective.
You can still do either with a sec/hand car, and as mentioned earlier, it will be a lot less of a hit on the pocket.
Going for a new one may provide more depreciation in the first couple of years, which will help towards minimising the tax bill, but you still need to come up with the monthly payments etc, and in the early years of a business cashflow is a critical factor.
Talk to your accountant as to which structure he/she recommends.
My post wasnt about the fact that you choose not to buy an expensive car. Thats your decision and thats cool.
That you think anyone who does buy an expensive car is a w@nker is what i was referring to.
That you think anyone who does buy an expensive car is a w@nker is what i was referring to.
also try to buy a car in QLD - flat 2% stamp duty makes all the difference. our new car upgrade for the family will be around the $60k mark for a 7 seater 4WD 5star safety rating, in WA i'll pay $3964 stamp duty and in QLD i'll pay $1224. there's a holiday in the middle there somewhere
I think they stamped this practice out about 2 years ago.. it is now based on residency of the buyer, not where you buy the car. Please let me know if this is wrong as i would pursue it if the loop hole still exists.
Hi All,
I'm looking at upgrading my caravan to a bigger one thus need to upgrade the car (Currently a BA Falcon 2004 on gas)to a 4 wheel drive so as to handle towing better.I would like to have the 4 wheel drive on gas if possible.Can anyone recommend a vehicle that would be suitable for this.I have looked at the Grand Jeep Cherokee 2000-2004 models and they seem to be well priced,but I'm a little concerned about part pricing and servicing..I've also looked at the Toyota Prado although a little more expensive than the equivalent Jeep year, parts and servicing maybe cheaper.Other vehicles considered were the Mitsubishi Pajero but according to friends the Prado outshines this vehicle.Interested to hear the opinions of forum members.
Regards Martin
I'm looking at upgrading my caravan to a bigger one thus need to upgrade the car (Currently a BA Falcon 2004 on gas)to a 4 wheel drive so as to handle towing better.I would like to have the 4 wheel drive on gas if possible.Can anyone recommend a vehicle that would be suitable for this.I have looked at the Grand Jeep Cherokee 2000-2004 models and they seem to be well priced,but I'm a little concerned about part pricing and servicing..I've also looked at the Toyota Prado although a little more expensive than the equivalent Jeep year, parts and servicing maybe cheaper.Other vehicles considered were the Mitsubishi Pajero but according to friends the Prado outshines this vehicle.Interested to hear the opinions of forum members.
Regards Martin
I don't have any advice, but I'm about to buy my first car, probably a Holden Barina, Toyota Starlet or Corrola or a Ford Festiva from 1990-1993. I was tempted for a while to buy a Peugot 307, Renault Clio or a Citroen C3 as they're all really good-looking cars but I'm glad that my first will cost much less than I can afford.
Fair enough; maybe I'm being overly cynical and a bit harsh (no maybe's about it!).
But given that there are very few millionaires as a percentage of the population, and the Beemers, Mercs etc are traditionally the car for the rich, and they haven't got much cheaper recently, don't you think I maybe at least half right?
Hi Everyone,
Sorry that I just disappeared into thin air for a few days - my access to the net is a bit limited at the moment.
Thanks for all of your ideas - I am taking everything on board and appreciate your thoughts.
It seems like buying a used car is definitely the consensus. No surprises there. I understand there is greater depreciation with a new car but that is of no real advantage to me as my income is relatively small right now and will grow over time, whilst the depreciation will do the opposite. Can anyone shed more light on this though please? Does this mean that leasing a car is likely to be better than hire purchase? I'm still getting my head around the finance options as I'm not in a position to buy a car outright at the moment.
Thanks for the tip about stamp duty Blue Card! I'm actually going to Queensland for a seminar in April and may look at picking up a car then instead in light of what you said, depending on how great the saving will be. Does anyone know if the rules have in fact changed though? I couldn't find anything on a quick Google search.
Twitch, I'd love to drive my car for another 6 months but it's just not an option as the cold weather will have started by then and my car is definitely not a reliable starter in the cold unfortunately. I drove all of last winter stalling at every set of traffic lights for about 10km until my car warmed up on each trip. Not good for your nerves when you really need to be somewhere on time!
Imonmyway, moving closer isn't really an option at the moment due to inflexible family commitments. The drive doesn't bother me though - I go against the traffic and the scenery is beautiful, so I just turn up the radio, relax and enjoy until I get to work. I've been doing a lot of driving for a number of years so I guess I am used to it also.
I notice a number of people here have suggested getting cars that are not even that new. I need to give this some thought. As I mentioned, reliability is paramount as I can absolutely never be late for work, so I really don't know how old I should go. Of course there is no real answer to this...
Thanks again guys - you've given me a few things to consider.
Ali G
Sorry that I just disappeared into thin air for a few days - my access to the net is a bit limited at the moment.
Thanks for all of your ideas - I am taking everything on board and appreciate your thoughts.
It seems like buying a used car is definitely the consensus. No surprises there.
I understand there is greater depreciation with a new car but that is of no real advantage to me as my income is relatively small right now and will grow over time, whilst the depreciation will do the opposite. Can anyone shed more light on this though please? Does this mean that leasing a car is likely to be better than hire purchase? I'm still getting my head around the finance options as I'm not in a position to buy a car outright at the moment.Thanks for the tip about stamp duty Blue Card! I'm actually going to Queensland for a seminar in April and may look at picking up a car then instead in light of what you said, depending on how great the saving will be. Does anyone know if the rules have in fact changed though? I couldn't find anything on a quick Google search.
Twitch, I'd love to drive my car for another 6 months but it's just not an option as the cold weather will have started by then and my car is definitely not a reliable starter in the cold unfortunately. I drove all of last winter stalling at every set of traffic lights for about 10km until my car warmed up on each trip. Not good for your nerves when you really need to be somewhere on time!
Imonmyway, moving closer isn't really an option at the moment due to inflexible family commitments. The drive doesn't bother me though - I go against the traffic and the scenery is beautiful, so I just turn up the radio, relax and enjoy until I get to work. I've been doing a lot of driving for a number of years so I guess I am used to it also.
I notice a number of people here have suggested getting cars that are not even that new. I need to give this some thought. As I mentioned, reliability is paramount as I can absolutely never be late for work, so I really don't know how old I should go. Of course there is no real answer to this...
Thanks again guys - you've given me a few things to consider.
Ali G
I'd rule a line through the lease and there are different flavours of HP. Ask your accountant.
I'd happily take my 9 year old car on a quick trip to Melbourne (from NQ) after just replacing a couple of tyres which are getting old. If reliability is critical, limit your search to Honda, Toyota and Mazda
I'd happily take my 9 year old car on a quick trip to Melbourne (from NQ) after just replacing a couple of tyres which are getting old. If reliability is critical, limit your search to Honda, Toyota and Mazda
Could you please explain the reasoning behind not leasing?
Funny you should say this - these are the makes I had narrowed my search to!
If reliability is paramount to you. Get a 2 or 3 year old Toyota with about 30 - 40k km, something like a Corolla. Toyota's are boring as bats$*t but the more you neglect them the more reliable they are
Toyota's have a deserved reputation for unbelievable reliability.
Regarding your finance.
Hire purchase is better than lease because with a lease you can claim the lease payments only against your income but not the depreciation because you don't own the car.
With HP (commercial HP if you can) you own the car so you can claim the repayments and the depreciation.
Toyota's have a deserved reputation for unbelievable reliability.
Regarding your finance.
Hire purchase is better than lease because with a lease you can claim the lease payments only against your income but not the depreciation because you don't own the car.
With HP (commercial HP if you can) you own the car so you can claim the repayments and the depreciation.
Toyota's are boring as bats$*t but the more you neglect them the more reliable they are
Toyota's have a deserved reputation for unbelievable reliability.
We have a Toyota Rav 4. Bought it new 11 years ago. We have never had any problems with it & rarely get it serviced, usually once a year before we drive interstate.
It is driven regularly over long distances & has well over 200k on the clock now. Prior to this we have had a few other Toyota's & have had few problems, even when they start to get old.Thanks evand and skater for your thoughts - much appreciated.
My current car is a Toyota so I can well attest to their reliability. My little old Corolla has served me well for eleven years but the occasional 'blips' are now making me nervous. Time for another car for sure, and possibly another Toyota... I am still having trouble making up my mind.
Thanks again everyone!
My current car is a Toyota so I can well attest to their reliability. My little old Corolla has served me well for eleven years but the occasional 'blips' are now making me nervous. Time for another car for sure, and possibly another Toyota... I am still having trouble making up my mind.
Thanks again everyone!
