Tax: Buy new or pre loved?

Snelens · 28-05-2009, 09:32 PM

Gday All.
Finally I am about to get myself a ute. I have been trying to decide what, why etc for what seems like years. I would love an RTV, have found a beauty, but its not eligible for the tax offset (I'm self employed). A base FG is about $10K more for brand new and I would get the juicy rebate. The other benefits of warranty etc have to be factored in but then if you tip in the loss as you drive away it sort of evens up. The RTV is way tougher and my heart is set on that but the numbers / $ !! What to do??

Are there any accountants or numbers people who could share some advice?

Surely there are other Ford fans out there contemplating an upgrade for the tax benefits?

Thanks

cant · 28-05-2009, 09:46 PM

1/ What sort of work do you do?

2/ What sort of budjet if any do you have

3/ Is it all for work, or FUN on the weekend also?

If you have the $$$ then go the new FG, you get to drive a Brand new car and after a year you get half back!

Plenty of people here who wish they had such a problem

Rodp · 28-05-2009, 09:55 PM

For the record, you don't get half back. You can claim half the cost as a tax deduction in the first year as well as standard depreciation of the full price.

Tax wise, you might work out close to even when you do your tax and you have a new car with warranty and a known history. If I was in the same position, I'd be buying a new FG over the RTV. If you've been depreciating your current vehicle and you're disposing, you might even end up with a nice tax deductable loss ontop of that.

Snelens · 28-05-2009, 10:22 PM

I have lost so much on buying new utes over the years that I am now very cautious. Buying new is a great rush for the 1st 6 months or so then its same same.
I will get a quote on an R6 and way it up again.

Thanks for the input.

Rodp · 29-05-2009, 07:00 AM

Quote:

Originally Posted by Snelens

I have lost so much on buying new utes over the years that I am now very cautious. Buying new is a great rush for the 1st 6 months or so then its same same.
I will get a quote on an R6 and way it up again.

Thanks for the input.

Are you claiming that loss as a tax deduction? I hate seeing the value of my car fall drastically but then when I see a $12k tax deduction at end of financial to cover that loss, it starts not feeling so bad. :P

ZA-289 · 29-05-2009, 10:32 AM

Quote:

Originally Posted by Rodp

Are you claiming that loss as a tax deduction? I hate seeing the value of my car fall drastically but then when I see a $12k tax deduction at end of financial to cover that loss, it starts not feeling so bad. :P

Do you have to use the vehicle for work to do this?

If you want the RTV, buy that. I don't think you'll feel to good about driving around in a car you didn't really want all day, espcially when you go offroad and want that diff lock!

Rodp · 29-05-2009, 12:15 PM

Quote:

Originally Posted by ZA-289

Do you have to use the vehicle for work to do this?

Yes. My vehicle is 85% work related according to my log book. :P I'm an employee though using a private vehicle. A vehicle purchased by the business may well be 100% but it'll require a visit to the accountant (not the one in the other thread...) to see what the entitlements are.

Being a vehicle mainly used for work, I claim business expenses of depreciation, fuel, repairs/servicing/maintenance, insurance, registration and even the interest on the loan taken out to pay for the vehicle. When I dispose of the vehicle, what the vehicle was sold for is compared to what the vehicle was depreciated to, and if it's for less, that difference is also tax deductable. If it's more, oops. :(

Snelens · 29-05-2009, 06:30 PM

Tonight has me leaning towards the FG. Better finish, new, on gas, warranty, 50% deduction & its only $7K more expensive. I would love the RTV but I have to be realistic with what the vehicle will be doing for 98% of its life. Carrying a dirt bike over rough tracks will be VERY rare.
The whole thing is 100% deductable for me as I am an electrical contractor & have 6 vans.

I will get a poverty pack & spend a bit getting it right.

Thanks for the input, fellas.

Buzz Box · 29-05-2009, 08:07 PM

Personally I would go new.

Easier for tax, safer and also get like an XR8 or XR6 etc so a few options and nice.

cant · 29-05-2009, 08:24 PM

Looked at the cost of getting a new FG XR8 on Wed, if i had ordered it on the spot thay could not guarantee delivery before June 30, thereby not qualifying for the additional rebate!

So if its not a standard production pretty much currently in stock you prob wont get it in time.

Still the new car and the extra depreciation is too good to pass up isnt it.

Goodluck

fakegt · 29-05-2009, 08:57 PM

Quote:

Originally Posted by cant

Looked at the cost of getting a new FG XR8 on Wed, if i had ordered it on the spot thay could not guarantee delivery before June 30, thereby not qualifying for the additional rebate!

So if its not a standard production pretty much currently in stock you prob wont get it in time.

Still the new car and the extra depreciation is too good to pass up isnt it.

Goodluck

I thought the dates have been extended after it was announced on budget night?
Try this thread for some opinions on this Tax rebate.
http://www.fordforums.com.au/showthread.php?t=11260654