Cars - Financing and Deals
Discussion
Following the 'daily dreaming'thread just wondering how others finance their cars and also what deals might be out there.
The finance possibles in Australia for what I can see involve:
- straight loan
- secured loan
- secured with balloon
- commercial hire purchase/Chattel Mortgage
- leasing
Now leasing I think is damn expensive and not really advantageous, even at a notated basis due to the full fat charge on everything and the tax offset isn't great.
Straight loans are ok but rates 10% +
The CHP/Chattel Mortgage is ok but solely business use and also the interests rates seem worse an normal loans and only good if you can claim the GST being self employed/ABN.
This leaves the affordable option being secured with/without balloon as rates seem to be around 6-6.5%. Also if you sue for business you can till offset a % of business use as tax deductible.
When i got my Falcon at $43k, it had a 40% balloon, cost $700 pm but with the tax deductions the rebate was c.$5k(including depreciation) so it actually came in at about $300 pm which was great.
The issue you have is that you can't get good finance balloons on cars over 4 years which means nice cars e.g E9# M3's etc are out the question unless you can afford $1500 pm so for most people you are looking at sub $50k cars and newish which leaves you with Commodores etc.
What's the view on this, how did you get your car financed and any tips ideas on getting something special/older easily financed?
The finance possibles in Australia for what I can see involve:
- straight loan
- secured loan
- secured with balloon
- commercial hire purchase/Chattel Mortgage
- leasing
Now leasing I think is damn expensive and not really advantageous, even at a notated basis due to the full fat charge on everything and the tax offset isn't great.
Straight loans are ok but rates 10% +
The CHP/Chattel Mortgage is ok but solely business use and also the interests rates seem worse an normal loans and only good if you can claim the GST being self employed/ABN.
This leaves the affordable option being secured with/without balloon as rates seem to be around 6-6.5%. Also if you sue for business you can till offset a % of business use as tax deductible.
When i got my Falcon at $43k, it had a 40% balloon, cost $700 pm but with the tax deductions the rebate was c.$5k(including depreciation) so it actually came in at about $300 pm which was great.
The issue you have is that you can't get good finance balloons on cars over 4 years which means nice cars e.g E9# M3's etc are out the question unless you can afford $1500 pm so for most people you are looking at sub $50k cars and newish which leaves you with Commodores etc.
What's the view on this, how did you get your car financed and any tips ideas on getting something special/older easily financed?
Some Interesting answers cheers.
Quotes at moment for a secured with balloon coming at 6.5%.
Chap at work buys new, runs 3 yrs then gets rid and he swears its the only way for him because new cards get a greater depreciation tax write off than older cars means together with tax offsets means he can run a $50k car for about $2500k per annum net.
Quotes at moment for a secured with balloon coming at 6.5%.
Chap at work buys new, runs 3 yrs then gets rid and he swears its the only way for him because new cards get a greater depreciation tax write off than older cars means together with tax offsets means he can run a $50k car for about $2500k per annum net.
papahet said:
Pommygranite said:
Some Interesting answers cheers.
Quotes at moment for a secured with balloon coming at 6.5%.
Chap at work buys new, runs 3 yrs then gets rid and he swears its the only way for him because new cards get a greater depreciation tax write off than older cars means together with tax offsets means he can run a $50k car for about $2500k per annum net.
Buy Gallardo for $170K, $3k / month with $80K balloon you say?Quotes at moment for a secured with balloon coming at 6.5%.
Chap at work buys new, runs 3 yrs then gets rid and he swears its the only way for him because new cards get a greater depreciation tax write off than older cars means together with tax offsets means he can run a $50k car for about $2500k per annum net.
Not much different from all those new C63 AMG's - that's how they get bought.
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