Hi all, trying to buy a new Mitsubishi Outlander 22 for around 50k. Never had a car loan before, always paid in full second hand. Will be buying the car under company's name too.
I am able to pay outright in full. However, seeing the interest rate is at an all-time low, is it better to hang on to my cash? Even my ETF is returning 10+% return easily without me doing anything. Just wondering what are the best way around financing a car? House equity loan? Any trap I should be wary about?
Which ETF?
The one with 10% APY.
So not that, one. The one with 10+%.
Talk to your accountant about how to structure the purchase and the tax deduction so it best suits your individual situation.
Will be buying the car under company's name too.
Just wondering what are the best way around financing a car? House equity loan?
Your house in company's name too? Or you mean as sole trader?
House are not. Not sole trader, company structure I.e. Pty Ltd
If buying under Coy then def talk to accountant esp regarding instant asset write off's, any GST credits, fleet discounts etc.
Loan would be against company name too secured by the asset.
@netjock: Have you even considered a novated lease? This is why your accountant must be the first place to go, not us (as full of wisdom as we all are :D)
Have you even considered a novated lease?
That would be for his employees.
If the company is purchasing there are several methods of structuring the purchase. OP definitely needs to talk to their accountant
Efts can tank if the stock market does
So that's the risk you take
Just look at a price history chart