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Buying a new car

Discussion in 'General Property Chat' started by Beelzebub, 2nd Apr, 2016.

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  1. Beelzebub

    Beelzebub Well-Known Member

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    Last year I purchased an IP. I figure, since I want to get my LVR down that it probably wont be until 2018 that I make my next purchase

    Now I could put all the $35k plus interest into an account and have a deposit for another property.

    But, what's the point of acquiring all this property and wealth just to be well off when you're 50. Plus, decades spent with such an attitude would probably lead to me not spending money when I have it anyway.

    So, I have two houses while none of my friends even have one.

    There needs to be balance between enjoying what you have now and planning for the future. So I'm taking the hit to my serviceability and getting something shiny that I want.
     
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  2. Barny

    Barny Well-Known Member

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    May I suggest a Porsche gt3 RS. They retail new for 387k plus on road costs, and have already appreciated in value, people asking 600k already and they've just taken delivery.
    No cg tax when you sell.

    Do it.
     
  3. DaveM

    DaveM Adelaide Buyers Agent & KFC Strategist Business Member

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    Some people (like me) are car people, some couldnt care less.

    Everyone has their vices though and may spend the equivalent of a car loan on bikes, kayaks, scuba gear, rock climbing, holidays abroad, etc etc.

    There is no right or wrong answer, you just do what fits with your investment and wealth generation plan.

    Since 2002 I have always driven new cars... I am able to lease them through my company without any servicing impact though so for me its a no brainer. In saying that, I keep the price reasonable (max 50k) and dont go silly even though I could buy something far more expensive.... its the sane part of me overruling the heart part of me :)
     
  4. TMNT

    TMNT Well-Known Member

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    Ive met heaps of ppl who lease their cars throguh their business and boast that its throguh their business. Tax deduction etc (not saying you davem)
    I did the maths. At the end of the day whether you lease it throguh business or buy it outright personally. I find the costs essentially thr same
    So i dont see what the big deal is

    A 70k car might cost about 400 per week . And if you can sell it for the baloon payment at the end thats great. But essentially you still pay 20k per year to rent a new car for a couple of years and then upgrade.
    I think thebnet position is the same
     
  5. larrylarry

    larrylarry Well-Known Member

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    I need to replace my second car with a newer second-hand car but I think, I will drive my second to the ground before looking to buy. Right now, acquiring the next property is the one thing on my mind.
     
  6. DaveM

    DaveM Adelaide Buyers Agent & KFC Strategist Business Member

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    Some of the benefits are

    GST rebate on purchase price, fuel, servicing etc
    Company claims a tax deduction on lease interest + depreciation pus all operating costs
    Far less cost to company than paying a car allowance/km rate for business use (which most is)
    No direct loan in my name, so less servicing impact

    But one of the most significant aspects is the fact that a company run vehicle is a direct cost to income expense pre tax. The company pays that 20k direct from its income stream. If i was to pay 20k personally, I need to earn that post tax (so circa 36k gross), which allows my salary package to have all sorts of non cash benefits during the financial year for cash flow, then pay a franked dividend each June.

    Has to be considered in the context of everyones business and personal vs business km... if its just driving to/from office as personal use, often not worth it.
     
  7. willair

    willair Well-Known Member Premium Member

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    First off all you have to get too the big "50",as a lot don't from my experience and even if you do at 50 you may be become unrecognizable from the person who you are now,i say this too a lot of people second hand mercedes sell for the trade in price that the dealerships will give them,they are built like tanks,and are very cheap to buy,or as a quote from a well know person
    from the other site once said,don;t die wondering what if,just follow your heart not the herd..
     
  8. mini2

    mini2 Well-Known Member

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    Why delay gratifying yourself if there's little to no impact to your serviceability? There's more to life than simply collect houses.
     
  9. larrylarry

    larrylarry Well-Known Member

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    I like mercs.
     
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  10. mini2

    mini2 Well-Known Member

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    Till a Service B and other km/time based items are due. At the same time.
     
  11. bob shovel

    bob shovel Well-Known Member

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    So what are you getting?? I'd like one with power windows next!
     
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  12. BarneyRubble

    BarneyRubble Well-Known Member

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    Meh, over rated. So is aircon. Mine has neither ..and I live in Queensland.

    I used to be a car guy, probably still am at heart if you checked my browser history of visits to carsales. Just cannot justify the depreciation anymore.
     
  13. Corey Batt

    Corey Batt Finance Strategist Business Plus Member

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    Depends if you're buying new. Like most euro brands, they offer a fixed cost over the term. My Bimmer total servicing over 5 years costs $1200, but I trade on 36 months anyway.

    Most hardcore euro buyers I know won't hold them out of warranty because of the potential costs for repairs.
     
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  14. mini2

    mini2 Well-Known Member

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    Mercedes didn't introduce a capped price offering or a service plan like BMW did till 2015 or thereabouts.

    Horses for courses I suppose, a fixed/known depreciation and stamp duty hit on the replacement or unpredictable/unknown potential repair hit by keeping the oldie in the fleet. You gotta pay for them one way or the other.
     
  15. neK

    neK Well-Known Member

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    DO IT! DO IT! DO IT!
    Seriously DO IT!

    You've hit the nail right on it's head. There is no point scrimping and savings and not enjoying.
    I made a decision to buy a car (Toyota 86) i didn't need several years ago. It took me 2 years to pull the trigger.

    And when I've bought I was super happy - happier than when i've purchased a property.

    Even though the car sits in the driveway 99% of the time (as I don't have time to drive it - I drive the main car because it's more practical), but each time I see it, the thought of "what a waste" doesn't actually cross my mind. It actually reminds me to smile - because I've worked hard and this is my reward :)
     
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  16. Kate Moloney

    Kate Moloney Well-Known Member

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    Good on you, its important to have a balance and enjoy life along the way. You can always find a balance between taking a hit to your serviceability and having the car you want. You could get a second hand car or a demo model to save a bit of money whilst still having your shiny toy.
     
  17. willair

    willair Well-Known Member Premium Member

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    Some of the motors mercedes run have up too 40 sensors on the motors alone,that cover just about everything that kicks in once you pre warm the motor up,and yes the "B" service can be costly if you go to the dealership and pay 230$$ per hour even with the free food drinks you can have while waiting,but there are several German Mercedes trained people that start their own business models and work for themselves that charge only 85 per hours,or buy a simple 200 buck scanner that will clip in under the dash and give you a fault readout within 25 seconds,then just reset the onboard pc unit,plus if it's a big problem they go into slow mode
    very hard to blow those motors..
     
  18. willair

    willair Well-Known Member Premium Member

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    Then you might like this,start it at about 1.20 into the clip,those models leased are now down 100k in the amg range,and nothing in this world on the ground will push you back into the red leather seat and hold you there like something like this who cares about the service costs..
     
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  19. Scott No Mates

    Scott No Mates Well-Known Member

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    I saw an advert in the lift for a Jaguar with 0% interest. It shows that the European market is still keen for business.
     
  20. Daniel007

    Daniel007 Well-Known Member

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    If you were lucky enough to get an allocation.

    Most people i know that managed to get an allocation traded up from the 991 GT3 and have been regular customers at their local dealerships for years.
     
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