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.
Business Owner Here Need to Purchase a 75k Car
fatboyslim on 13/02/2019 - 07:22
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I might have to as i might need to add a few options.. But i have other high yield investments so the car will be for pure enjoyment!
high yield car
You need to work harder on getting your memes right :-)
It's a "high yield investment vehicle".
My bad, I was half asleep when I typed out my first comment. Alas, I don't earn enough to drive a high yield investment vehicle and I have to rely on pleb transport to get to work.
You definitely won't get a job as a Westpac Analyst by dropping the ball like that!
Investment cars are a BOOMING ECONOMY đ
âNeedâ to purchase $75k car? Investment car? This business you own… is it Westpac?
I wish i could own a company listed in the asx..
Westpac only costs about $26.00 today
Suggest you talk to your accountant. Generally cash isn't a good move for a business in terms of tax deductions and cash flow.
This is the only relevant answer anybody could say!
Your accountant knows your business structure. People on ozbargain don't.
You're taking the piss surely…
"need to"?
Will this high yield joke ever get old? It's old for me, like most jokes that have been made more than 1000 times
Bikies
MS Paint
Price beat at Officeworks
What did the joke say when you asked it?
That "I am not a joke"
knock knock
5% off gift cards
Eneloops.
Tightarse
Broden
Phone is fine.
I still love it.
Band 28
$300k annual household income
NFC
Thanks bought 10
Have you tried turning it off and on again? :D
Price jack!
First post please be kind
Bonut.
Cyclists… Wait wrong Forum
Don't forget cashrewards
Asking for a friend
Unfortunately my car is not insured.
Who was in the wrong?
Plenty of cars to choose from what is it going to be used for?
Business asset. So all expenses r deductable
I hope the business you own isn't an accounting firm lol
No. Thanks for ur concern though
It doesn't work that way. You can't just classify something as "business asset" and tax deduct it. You need to prove that it generates revenue for your business (e.g. truck for a builder). No matter how you structure the financing, you won't be able to tax deduct it… Your business will have to pay fringe benefit tax on it. So if you work for a public listed company then it's ok because the poor shareholders would be paying for your luxury vehicle, but if you "own" the business, then your are just wasting your asset in the business…
Nah. Beer hat? Business asset. Ostrich leather jacket? Business asset. Now write it off, bean counter!
if you don't need to drive it regularly, and can keep your standard daily driver, have you considered getting a classic car that will appreciate in value - like a 1970/60s corvette or something which is horribly impractical but should hold value if you can keep it in good nick. Additionally i think certain classic cars are exempt from registration - will require a google. Then at least the car you buy will be an appreciating asset. Unlike virtually every other car which is a depreciating asset.
If you just want a cool car then get a mercedes AMG or Golf R Wagon Wolfsburg edition.
Im still trying to figure out how its ok business to blow 75k on a car. i wish i had that problem.
Additionally i think certain classic cars are exempt from registration
Vehicles 25 years or older are eligible for a club permit - and you also need to be a member of a registered car club (which generally just means paying a fee). The vehicle can only be driven only 45 or 90 days a year, and requires a log book. These cars have maroon number plates.
This has got to be a gee up.
If I was a financial advisor and a client asked me that I would ask back
Why a $75K car, why have you already determined what the car's value is vs what its needed for?
eg
I need a new delivery truck?
I need to impress my secretary/clients etc
I need to hide $75K
I need to appease my partner for something I did wrong
The local standover merchant has a black Merc they want me to pay for.
Its a used Trabant and I thought I could buy it and charge my business $75K and keep the cash tax freeThen I would look at your business and how it's structured and your cash flow etc
In other words when someone comes with some predefined specific concept, how well can I advise them without understanding the objective.
Crap in Crap out
Are you a financial planner?
Lol buy asset, depreciate over 5 years, sell to family trust for $200 buy back from trust for 20k repeat. Jail is free food is free tv is free "company" is… Unwanted…
Mostly up sides.
Do u speak english? Hang on this isnt england. This is australia
To clarify the situation.
1) if i pay cash, then 60k less to invest in the current stock market.
2) if i loan then ill pay interest but able to invest 60k in the ASX.
It will not affect the cashflow of my business.
Your money or the company's money?
Also don't leave us hanging. Which car?
Company coin.
Not a european car as to all those who wonders if it is an AMG or RS or M
So you don't want to tell us what vehicle, category of vehicle, it's intended use, you don't have an accountant, and you want to invest company assets in the ASX without professional advice?
Oh boi.
@Typical16-bitEnjoyer: Maybe he is talking about the Mitsubitsi ASX? alot of options on it if it is 75k
So your business invests in the ASX, but requires a 75k company car? Sounds legit!
Yes. I deliver youfoodz full time in my business asset (Not!)
Im just after some advice, thats all. No need for any other unneccessary details.
Yeah but nobody can give you actual creditable advice without ALL the details.
If I were you and you "NEED" the car and you invest in stock market, then loan assuming your investments have a greater return than your interest payments and you can handle the risk of the investment returns being less than the loan.
So OP got a business, but don't have a accountant ? ouch
I do. But he only does my tax thats all
Can afford cash or loan. Which is the best for value? Business is GST registered. Hire purchase? Or pure car loan? Pros n cons?
that is a question for your accountant.
Can afford 75k car with cash…. Doesn't pay for a proper accountant.
@Typical16-bitEnjoyer: Like all ozbaraginer, would like to do all brainstoming here first before my consult.
Isnt here the best place to discuss all of the following?
1) whos fault is it in an accident
2) asking for a friend
3) investing n legal advice
4) all other life advices
5) how to get out of uninsured car accidents@fatboyslim: Im been serious here, your accountant got the numbers, he or she be the best person to talk to based on your financial situation and give you the correct advice.
Unless you want to be the part of 99% of people here asking for useless advice/trolling category.
If your accountant can't help you, get a better one.Unless you want to be the part of 99% of people here asking for useless advice/trolling category.
…or just here to showoff. Wouldn't be surprised if he got the car even before creating this thread.
This is a great meme,
Has business tax deduction question, doesnât ask accountant because they only do their tax, thatâs all!
and he can't advise you on spending 75k on a business asset ? he is that guy in a pop up booth in westfields?
Just an FYI you can only claim GST and depreciation up to the depreciation cost limit (2018-19 it's $57,581), - not the full value of the car.
I find the tax implications of financing vs outright are negligible - the impact on your cash flow should be more relevant to your decision.
See my clarification above. No cash flow concerns
So just buy it outright unless you think you can achieve a better return on the stock market?
Is there any specific advantages if i get a loan?
@fatboyslim: You'll have 75K to invest! The interest/fees are deductible however interest rates are low at the moment.
I think your decision should be based purely on the whether you think you can average a return better than the effective interest rate you can get. From my perspective by buying outright you'd effectively be guaranteeing yourself a return of whatever the effective interest rate you can obtain.
@fatboyslim: Yes, if you can't affort it, they will just tow it away…problem gone..
putting cash on it will require you to sell it when you have cash flow problem.
Seriously tho.. you invest for a living and you asking about this?
@fatz: Have never gotten a car loan before hence wanna brain storm ideas.
I dont invest for a living. Its my side job. I have a full time business running job also.
I think there might be a bigger difference between buying and leasing, than between buying outright and financing.
But I second others' questions on why you need a $75k car.
Surely this isnt the entire reason… But if u r keen to know, then this is best answer i can give
If you want to surpass them rather than keep up stay with a modest $25k car. Your $50k saved will become $100k and when you live this lifestyle you will end up with far more wealth than your neighbours.. all of which might be sunk in the coming global crash and depression.
My last concern is needing to surpass my neighbours. They can be billionaires or pretend to be one. None of my business.
It just happen to me at this point in time i wanted a new car n prepare to spend 75-80k on my next purchase. Nothing more, nothing less.
@fatboyslim: Sounds absolutely essential to your business. Let's hope nobody from the ATO reads these threads.
Why do you need a $75k car?
See above
Honestly your reasoning above doesnât really make sense. I would love to hear what is really going on, whether this is serious or a troll post.
Serious post
@fatboyslim: Would be great to get a serious explanation then, you clearly arenât getting any advice here because no one believes in your credibility.
@pantsparty: Why does it matter though? Lots of people have 75k, 100k, 150k cars. So what? He's asking about finances, not the vehicle, which I agree should be discussed with accountant. But I don't get why so many on here don't believe people drive anything other than a Mazda 3, Camry or 10 year old high mileage car. To each their own.
@Hybroid: It does matter. Wanting a 75k sports car vs a utility vs a commercial vehicle changes the goal posts. Cars aren't just a "tax write off"
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Why not stretch your budget and get a high yield car?