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Investing in cars.

Discussion in 'Living Room' started by Dylan33, 17th Apr, 2016.

  1. Dylan33

    Dylan33 Well-Known Member

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    just watched a show called Extreem Restos. Got my rev head side thinking. How about I sell an IP and trade in cars? Combining my passions! No tax in selling cars and quick cash in hand if needed.
    Whatcha reckon?
     
  2. jaybean

    jaybean Well-Known Member

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    Friend at work kind of does this. Classic cars. Don't know much about it personally.
     
  3. Barny

    Barny Well-Known Member

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    Love that show. Cars can still take time to sell.
     
  4. LifesGood

    LifesGood Home Building & Development Consultant Business Member

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    Why no tax in selling cars? Income is income, is it not?
     
  5. Greyghost

    Greyghost Well-Known Member

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    Incorrect, if training cars it is a business a taxable supply.
     
  6. Johnny Cashflow

    Johnny Cashflow Well-Known Member

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    Probably once you start selling a few per year tax man would want their piece
     
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  7. Barny

    Barny Well-Known Member

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    If they are purchase in your own name and not as a business then it's ok, no tax. As long as you don't buy and sell heaps per year.
     
  8. Sonamic

    Sonamic Well-Known Member

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    I think it's six a year or something in your own name?
    I know a guy who does this for pocket money. Buy, sell, swap on gumtree. Not unusual to make $2k on a car a month. Low balls 4-5k for vehicles advertised at $8k. Successful in about 2 out of 5 offers. Takes them home, spends a day or two detailing the hell out of them in the garage. Then lists them for $9k or swaps. Traded up from a $4k Honda Civic to a $30k Harley in 4 swaps a couple of years back. That was pretty impressive. He does have the gift of the gab though.

    Some Porsches are appreciating well at the moment.
     
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  9. Barny

    Barny Well-Known Member

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    What kind of cars are you thinking of perhaps buying to sell?
     
  10. Dylan33

    Dylan33 Well-Known Member

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    Have to do a bit of homework first. See what's popular ATM. My preference is for American 50/60s. Or Brithish 60s classics. But probably work up to that.
     
  11. Hanison

    Hanison Well-Known Member

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    6 in own name, per year. I believe is the number allowed before seen as business.
     
  12. Dan Donoghue

    Dan Donoghue Well-Known Member

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    You should check out a show called Wheeler Dealers - Trading Up.

    It's a spinoff of Wheeler Dealers and has done 2 seasons so far, he starts with a budget of $4K or something and trades his way up to a supercar. Basically doing exactly the same as your mate, a little tidying up and cleaning and that's it.
     
  13. jim1964

    jim1964 Well-Known Member Premium Member

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    Australian 1970-1984 are good to make money on,especially chargers,pacers,gt,s and sandmans.Go by the rule no chrome bumper,no spend money.
     
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  14. drg86

    drg86 Well-Known Member

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    I have done well out of cars in the past. Especially the cheapies. Some were sold for double what I invested over a few months. Just cleaned them up/minor repairs or even did nothing just got in cheap.

    I make much more from property now but it was fun. Will definitely get back into it once I buy a new PPOR with a large shed.
     
  15. Barny

    Barny Well-Known Member

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    Been thinking about buying some now, but I'm not convinced I can beat 5% return year on year when all costs are factored in.
    Can I ask what cheapies have worked well? Happy to pm if you don't want to say here.
     
  16. mr500

    mr500 Member

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    I tend to do well on motorbikes. Like houses, you have to buy well.
     
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  17. drg86

    drg86 Well-Known Member

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    The ones I did well on were work utes. Just basic 2WD Hilux's that had been trashed by tradies. Picked up for say $1500, replaced a few parts from wreckers, fix ripped seats, polish cab, paint chasis, clean up tray, about $1500 plus a few weekends. Sell for $5500-$6000.

    A HG Kingswood bought $2000, washed, Sold $4000

    Just a hobby for me, never intended to invest in them, small change compared with property but great returns and had fun/learned new skills doing it.
     
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  18. Barny

    Barny Well-Known Member

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    Mate that's an awesome return. Why invest in houses with that kind of return. That beats it hands down.
     
  19. R377

    R377 Well-Known Member

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    Aussie muscle cars have and always will do well. I know a few phase III's that sold for half a mill
     
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  20. Barny

    Barny Well-Known Member

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    They definitely are the better sellers. Not all make money on them though.
    If you spend 100k on one for example,(or 50k) hold it for 10 years at roughly 4%, that's just under 50k in interest, 10k in insurances, 3k for services, storage free if you have the room. Need to sell at 165k to make it worthwhile.
    Probably best to buy 5 at around 20k or less that hopefully will appreciate in value. If they don't, hopefully you buy cars you enjoy driving.
    I reckon the vnss, vpss, will appreciate pretty quickly over the next 5 years. Been following these and other makes for the past 2 years, and prices are moving now. 8-15k will buy you mint examples. Tried to buy one last week and it sold within 24hrs in perth.