Business Owner Here Need to Purchase a 75k Car

Can afford cash or loan. Which is the best for value? Business is GST registered. Hire purchase? Or pure car loan? Pros n cons?

Appreciate all comments in the know.

Comments

                  • +19 votes

                    @Hybroid: Type of vehicle and primary use dictates the answer to OP's original question.

                    Also commuting from home to work is not claimable, so we've established your knowledge of this area :-)

                    •  

                      @zeggie:

                      Also commuting from home to work is not claimable, so we've established your knowledge of this area :-)

                      You're actually right on this, I tried to claim my expense through tax when I was working and the tax guy said that's not applicable and doesn't count. BUT you can claim tax back on the mileage you drive DURING work if it's to do with work and nothing else….

            • -1 vote

              @pantsparty: He wont get a serious answer as the largest portion of ozbargain users are jealous bottom feeders. This site has become a sad reflection on what it once was.. Ditch the forums and remove comments from bargains and maybe, just maybe, Scotty wont go to hell.

  • +10 votes

    Honestly I don't understand why everyone is having a go at you.

    Owning a nice car in the business and writing off part of the costs is one of the great joys of being self employed.

    @fatboyslim - I made a similar decision recently.

    I chose to finance the car and invested the cash I had on hand into growing my business. In my case this was spent putting on a new assistant and developing salesforce to further automate a lot of what we do.

    Mod: Removed solicitation for business

  •  

    If i choose to finance. Would car loan/ business equipment loan/hire purchase or chattel mortgage is the best?

    • +7 votes

      Would car loan/ business equipment loan/hire purchase or chattel mortgage is the best?

      Your accountant can… oh wait, you don't have one!

    • +6 votes

      Put it on your credit card and pay the minimum amount each month.

    •  

      Chattel mortgage imo. We have a stack of business vehicles from 20k to 140k.

    • +3 votes

      You need to know what your interest rate, fees and tax deductions/liabilities are for each of these financial tools.

      We can't help you without your financial information such as current debts (business and personal), income, tax strategy, etc.

      The interest, fees and tax deductions all depend on your private financial information and your lender.

      There are also better finacial strategies than the ones you listed.

      Being a tightarse now is going to cost you thousands later on. Talk to a professional you trust.

      General financial advice will only cost you money.

  •  

    yawn this joke is getting boring.

    op needs to come up with some original material

  • +12 votes

    I'll try to answer this without making jokes.

    A car is a terrible investment, but it's a pity you didn't ask 2 weeks ago because an old car of mine was for sale and it would have been the next best thing to a good investment, ie. has not lost any value in 12 years and will probably appreciate from here.

    An accountant is not someone who just does your taxes, they are people who advise you on business matters.
    If you can't call your accountant and have this conversation with him or her, you need a new one.

    I had this exact conversation with my accountant last week (although I was talking about buying under $20k to hit the immediate write off limit).
    Right now finance is cheap, so if you're any good at picking stocks you can make way more by financing the whole thing and using the money elsewhere.

    But asking a bunch of cheap c@nts on the internet about a $75k car is just inviting ridicule

  • +10 votes

    Another in a long history of troll posts

    • +1 vote

      How is this a troll post?

      • +7 votes

        I suggest you return the money you took for that gumtree blender, put aircon in your investment property and buy a new cooktop 😀 and then if there is any money left urgently buy a car for your business.

        • +1 vote

          Ive done all of the above, so the rents keep coming in, cook tops been fixed n a lot of home cooked meals so saving heaps. Hence time for a new car.

    •  

      Agreed

  •  

    hot hatch not doing it for you?

  •  

    How does it work with having a 'business vehicle' . Ie. Is it sufficient to just get any vehicle, put advertising on doors etc, and then claim it as a 'business vehicle'
    .
    I have heard that if a vehicle is 50% business use 50% personal use, then you can claim on 50% of costs.
    Maybe placing significant amount of advertising on the vehicle for the business, covers any vehicle 100% ?

    • +1 vote

      That's a question for your accountant. Otherwise the ATO will rip you a new one.

      Just ask any tradie who was buzzing around jobs in a HSV Maloo a year ago but has suddenly downgraded to a older used Hilux.

  • +2 votes

    What ever you decide, don't get Mercedes or bmw. Or your car will spend more time at mechanic.

  • +3 votes

    You can't go past a reliant robin

  •  

    Can you lease a Rolls Royce? If so, I'd pay for a ride in one of em!

  • +4 votes

    You'd think that people would have learned never to ask for any advice on Ozb other than where can I get the cheapest xxx? Majority of responses are generally plain wrong or attempts at humor or off on a different tangent.

  •  

    Terrible financial advisor, did he advise putting money into Bitcoin?

  •  

    There you go
    https://www.ozbargain.com.au/node/438306

    Well under budget and you get two cars.

    Enjoy

  •  

    How old are you OP??

    • +2 votes

      Based on his spelling and grammar doesn't seem like he's finished high school yet. That would also explain the trolling nature of the post. I am honestly surprised people are willing to take the time to reply seriously to these kind of "questions".

  •  

    oh god….here we go…..

  • +1 vote

    Trolling?

  •  

    thanks to all above that posted, it helped with my first morning weight loss session.

  •  

    Just transfer me 75k worth of bitcoin and I'll sort out the rest.

    /s

  •  

    Got $75k looking for free advice. Dumb luck if you get the full picture.

  • +1 vote

    Chattel Mortgage. Macquarie leasing. Done.

  • +2 votes

    stop voting for the LNP. this sort of shit is clearly a farce.

    vote to better society not to line your smug pockets.

  •  

    Dude, as just about everyone else has said here, you need to speak to your accountant!

    Your options are pretty limited between novated lease (which basically doesn't require a log book but has many limitations), or as a company asset which is depreciated, which basically needs to be used for business only purposes as evidenced by a log book.

    •  

      Happy to spend $75k on a car but too cheap to pay $110 for the accountant's time. Go figures.

      •  

        Honestly, if your business does anything more than selling paper mache gift cards at the local market, then you need an accountant to do business. They won't even charge you for stuff like this, so I don't really know what this guy is doing.

  •  

    Fully loaded CX9

  •  

    people don't learn…..

    OP, people are just going to knock you for having the ability to buy a car that is deemed above the average consumer car and you not going to get advice from a forum from strangers ( who have no ethical obligations) and then act on it- are you???? if you run a business you probably shouldn't seeking this advice………

    go to your accountant and discuss the options not from posters with chips on their shoulders!

    disclaimer: assuming you are not trolling….. but who knows why people would post this for kicks! strange!

  •  

    Surely you can look into this yourself

  •  

    If op wanted a $74k car i could recommend quite a bit

    $75k, not so much.

  •  

    I know nothing about tax or business stuff but I'm am here to advise on the car. What kind of car are you looking at?

  •  

    If you have no other non tax deductible debt (ie. home loan, credit card debt) or short term future plans to buy a home, then buy the car with cash.

    If you have a home loan then pay down the loan and finance the car (assuming a reasonable interest rate)

    If you are planning to buy a house in the near future, then finance the car.

    The strategy here is to minimise your non tax deductible debt where possible.

    You should also look to finance the car if you think you can get a better return on the cash somewhere else than the interest rate you will be paying. ie. investing in sharemarket.

    The above all assumes the car is used primarily for work. You will likely need to verify this with a log book. Seek advice from an accountant regarding the various ways that you can claim vehicle costs on your tax.

  •  

    I’m not going to tell you how to purchase your car, but I’ll make a recommendation on which car to buy. The Tesla Model 3 order book is supposedly opening up in Australia in 2 months, with deliveries a few months after that. You’ll be smack bang in the middle of the price range, and if you charge at home, the savings you make in running costs could allow you to get a more expensive one from the outset. It’s the best car in the 3/C class of cars by a long stretch.

    •  

      That might be outside my budget. Arent they going to ship the long range battery or performance version first? If u add in a couple of options will be almost 90k

      •  

        When they say first it’ll be a couple of shiploads. I think for $75k you’ll probably slip into a LR Rwd or a MR with autopilot. They’ve reintroduced the LR rwd to China so it’ll probably come here with our comparibly expensive cars. After the first couple of ships you’ll be able to get anything you want. Definitely a superior car to anything else in that price range, and not long away now.

        •  

          My pick will def be the 35k usd version plus auto pilot. Thats it.. But i cannot wait that long. So its unfortunate

  •  

    OP how old are you, for the second time..

  •  

    NEED?! Right! You run your own 'show' & guessing you'll be pointing the finger at OZB when you get pulled up re: 'your decision'?!

  •  

    A Petrol Guzzling 1990s 4WD, Landcruiser or Patrol.

  •  

    yawn @ troll thread

    •  

      I'll play.

      $57,581 car limit for both depreciation and input tax credit. Also need to factor in FBT if it's a non-commercial vehicle.

  •  

    Hi OP,

    Are you still using poor old Shirley as your accountant? https://www.ozbargain.com.au/node/408002

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