How do you buy and claim a luxury vehicle

As I drive my $1209.00 2004 Ford Explorer around town, I see an enormous array of $200k plus vehicles. Some of my finance customers for example have a net worth of some one twentieth that of mine, and drive cars worth 200 times my daily.

The only way I can see the tax deductibility and no fbt is if it was the trading stock of a licensed dealer or solely for motor racing use.

So how do they buy such expensive cars, is it in after tax non deductible dollars.

 

@Car tart - is that your car (on the nature strip)?

 

No, my wife’s.

 

@Car tart
i thought they were called Ford Exploders ?

I heard Mark Boris say something along the lines of "cars are the quickest way to go broke"
but i'm sure at the end of the yellow brick road one can spare the expense.

 

1 they lease them
2 they borrow to buy them or
3 your just tight

 

There is a fair chunk of "I want/I deserve" mentality when it comes to cars
Yet people get upset when trading in and they discover it has depreciated $15,000pa
But they still upgrade (mmmmm shiny!)

 

4. They rebirth them

 

Do you still have that shed up on Sunblest Cres?

 

Pretty sure novated leases are still popular with high income earners and many employers offer it.
I remember the big stink a few years back when one of the political parties tried to get rid of the tax perks and there was a pretty big backlash from all the various interest groups.

 

All your answers, don’t consider the unclaimability of vehicles over the luxury car tax threshold.

The 4.0 V6 is the exploder due to having one of the longest timing belts of any car.
The more expensive ($1209) V8 version is fitted with the mustang coyote engine.

 

You mean that panel beater/spray paint joint called 8 Ball?

Drive in the front with a white VN commodore, drive out the back an hour later with a blue coloured one. Cops are on the lookout for a white VN

 

I know little about this but I was under the impression that it was just the GST you couldn't claim on "luxury" cars (LCT cars) but you could still own them as a business/private and claim business use?

Happy to be wrong/educated

 

I just pay cash and don’t bother claiming it.

Our Net Worth dropped $150,000 last year, due to property and shares tanking it.

... and I have nothing to show for it .

I would have been better of spending that money on a luxury car. At least I would have a nice set of wheels in the garage .

 

I'm sure boats are a faster way

If your vehicle is used predominately for business use then this makes it more tax effective, but the reality is that it is still going to cost you more than driving around in the cheapest possible car. Especially given that depreciation is capped at the LCT limit and that is the biggest cost of a luxury vehicle.

For some like me I'd class myself as spending more than average on cars. But cars are a passion & I justify it as a lifestyle choice no different to living in a nice house.

 

Spot on. High business use but still going to cost you way more than a corolla

 

depreciation capped at a "purchase price" of $57,581.

 

That's a good looking 2 door merc in the drive-way ..

 

Many moons ago I worked for a property developer on the North Shore [Sydney] and he worked his way through every expensive car [Porsche etc] available at the time, all of which I was a passenger at various times.
Best fun and giggle was when he had a new Rolls Royce and we had to go to St Ives - he put a cap on, I sat in the back seat and off we went with me waving at anyone who looked. Still remember it and laugh ...
I was his bookkeeper and the cars were leased through the company and claimed as a business deduction.

 

Yours for $35k.
Wife wants something bigger.