Hi all,
This question is obviously better directed to my accountant (once I find one worth talking to) but would be happy to hear your opinions on what options I should explore in my situation.
I'm 21, I work as a sales rep on the road (approx. $40k base + comms), I do about 30,000kms + per year, and my current car is 6 years old but has 200,000kms already and is soon going to get expensive to maintain. It would be worth say $8k if I sold it privately now.
My car is probably about 70% business use but I have never kept a log book before. I think this is something I should probably be doing as well?
At the end of the year I will have about $10k cash to spend (+ extra for insurance etc), and I want to buy a motorbike worth $8k and upgrade my car. I don't need anything flash, just something reliable but with less kms.
So if I sell my car I'll have say $18k and I want to buy an $8k bike and $15k car.
I have never had debt until purchasing my 2 IPs, and have always been of the mindset to only have debt to purchase assets which appreciate in value and self-service. I was going to buy a bike at the end of the year, and then when I can afford it, sell my car and buy a new one in cash.
However, I was speaking to an acquaintance today who used to be an Accountant and he suggested due to the amount of kms I do, I may be better to look at leasing a car for 2-3 years in an arrangement whereby I do not own the car at the end. I suppose this would increase my tax deductions, increase my cash at bank, void the high depreciation of my vehicles due to the high kms I do etc. but will increase my debt and I will have repayments to worry about. Might also affect my borrowing capacity for purchasing property?
Can anyone point me in the right direction for who would finance such an arrangement so I can try run some numbers to see if this is a better option for me?
Any suggestions on what other options I should consider would be appreciated.
Many thanks.
This question is obviously better directed to my accountant (once I find one worth talking to) but would be happy to hear your opinions on what options I should explore in my situation.
I'm 21, I work as a sales rep on the road (approx. $40k base + comms), I do about 30,000kms + per year, and my current car is 6 years old but has 200,000kms already and is soon going to get expensive to maintain. It would be worth say $8k if I sold it privately now.
My car is probably about 70% business use but I have never kept a log book before. I think this is something I should probably be doing as well?
At the end of the year I will have about $10k cash to spend (+ extra for insurance etc), and I want to buy a motorbike worth $8k and upgrade my car. I don't need anything flash, just something reliable but with less kms.
So if I sell my car I'll have say $18k and I want to buy an $8k bike and $15k car.
I have never had debt until purchasing my 2 IPs, and have always been of the mindset to only have debt to purchase assets which appreciate in value and self-service. I was going to buy a bike at the end of the year, and then when I can afford it, sell my car and buy a new one in cash.
However, I was speaking to an acquaintance today who used to be an Accountant and he suggested due to the amount of kms I do, I may be better to look at leasing a car for 2-3 years in an arrangement whereby I do not own the car at the end. I suppose this would increase my tax deductions, increase my cash at bank, void the high depreciation of my vehicles due to the high kms I do etc. but will increase my debt and I will have repayments to worry about. Might also affect my borrowing capacity for purchasing property?
Can anyone point me in the right direction for who would finance such an arrangement so I can try run some numbers to see if this is a better option for me?
Any suggestions on what other options I should consider would be appreciated.
Many thanks.