Automotive Vloggers (Vol. 5)
Discussion
thanks for the comments chaps... plenty more videos to come
I'm editing another race vid at the minute and quite a lot happens. Failures, visits to the stewards, trophies... it's a pretty good race video. One of the best so far I think
eta: and yes, like the other youtubers here, i do check this thread now and then if I think I'm worthy of a mention on the almighty PH forum. Shame Shmee doesn't contribute here anymore but its not surprising
Challo said:
I love watch Danny's video's but its a niche content and wont appeal to the masses. Obviously more views and ultimately more money would no doubt be better, but like other posters have said I don't think thats why he does it.
Yeah maybe - but most Youtube channels are niche in one way or another.I'm editing another race vid at the minute and quite a lot happens. Failures, visits to the stewards, trophies... it's a pretty good race video. One of the best so far I think
eta: and yes, like the other youtubers here, i do check this thread now and then if I think I'm worthy of a mention on the almighty PH forum. Shame Shmee doesn't contribute here anymore but its not surprising
giveitfish said:
littleendbearing said:
I've run the numbers myself and apart from the small error (I think you used 25% for PAYE not 20%), numbers check out. To me this feels totally wrong, the key thing is with the finance you have had to earn less to have the car, hence payed less tax.
Here is an extreme thought experiment to show why it's that way.
Finance: You buy a £100,000 car, no deposit, pay £1000 a month and sell it after a year for the exact loan amount, lets say £90,000. It cost you 12 monthly payments of £1000 that you paid tax on, £14,400 to own the car for a year.
Savings: Same rules, total cost is £120,000 in earnings to buy the thing, giving you £90,000 in your pocket at the end. So it cost you £40,000 to own the car for a year.
I know there are loads of things in the real world that complicates it, the big one in this example is, with savings there is zero earned tax on the next car, you have already paid it. The finance person will need to pay it again, and the interest etc. After enough cars the bought outright person would have paid less (no interest at any point) but now I see when viewed in isolation it works that way. Sorry this is really off topic. Should I post some YT channels to make up for it?
Yes, that's it exactly Here is an extreme thought experiment to show why it's that way.
Finance: You buy a £100,000 car, no deposit, pay £1000 a month and sell it after a year for the exact loan amount, lets say £90,000. It cost you 12 monthly payments of £1000 that you paid tax on, £14,400 to own the car for a year.
Savings: Same rules, total cost is £120,000 in earnings to buy the thing, giving you £90,000 in your pocket at the end. So it cost you £40,000 to own the car for a year.
I know there are loads of things in the real world that complicates it, the big one in this example is, with savings there is zero earned tax on the next car, you have already paid it. The finance person will need to pay it again, and the interest etc. After enough cars the bought outright person would have paid less (no interest at any point) but now I see when viewed in isolation it works that way. Sorry this is really off topic. Should I post some YT channels to make up for it?
I think the 20% PAYE in my sheet is correct - if you earn £25k you pay 20% tax. 20% of £25k is £5k, so you only take home £20k after tax.
I won't post any more as it's not what this thread is about, but I found it interesting to work through. Looking back over my car history it adds up to the square root of sod all, but it does show how I could have funded braver purchases with the same earnings.
In Tony’s case, he owns his own company. Let’s say he takes out an extra £25k in salary and pays 20% income tax on it bringing it down to the £20k you mention. What about the fact that the company, his company, gets corporation tax relief on the £25k at 19%? That offsets the £5,000 income tax he pays by £4,750.
Working in the opposite direction, he has to pay employee’s national insurance so he would have to take more than that out to get to a net amount of £20k. What about the employer’s national insurance his company has to pay on the salary? This will also qualify for corporation tax relief.
If he took a dividend instead, there would be additional personal tax for him to pay.
Overall, it is beneficial for Tony because he uses the loan to avoid having to take as much money out of his business. Having said that, if the business is making money, he will have to find a way of getting that money out of it at some point, and that will involve paying tax.
The main thing is that it doesn’t apply to most people as they won’t have their own companies.
giveitfish said:
I think the 20% PAYE in my sheet is correct - if you earn £25k you pay 20% tax. 20% of £25k is £5k, so you only take home £20k after tax.
I'm struggling to follow this but if you're PAYE then you wouldn't pay 20% tax on all of your £25k earnings as you have a personal tax allowance to take into account.ro250 said:
giveitfish said:
I think the 20% PAYE in my sheet is correct - if you earn £25k you pay 20% tax. 20% of £25k is £5k, so you only take home £20k after tax.
I'm struggling to follow this but if you're PAYE then you wouldn't pay 20% tax on all of your £25k earnings as you have a personal tax allowance to take into account.Financing may be cheaper overall in some circumstances, but in this case it isn't because you're paying less tax.
"Here is an extreme thought experiment to show why it's that way.
Finance: You buy a £100,000 car, no deposit, pay £1000 a month and sell it after a year for the exact loan amount, lets say £90,000. It cost you 12 monthly payments of £1000 that you paid tax on, £14,400 to own the car for a year.
Savings: Same rules, total cost is £120,000 in earnings to buy the thing, giving you £90,000 in your pocket at the end. So it cost you £40,000 to own the car for a year."
I presume your income will be the same whether you buy or finance. So assume your income is £120k and now do the sums. You will have more money left for things other than your car if you buy.
For me, having funds available to buy outright, if I finance I would release funds to invest. It would only be attractive to finance if I could rely on making a higher return from investment after paying tax on that return than the finance interest charges. Which would be ambitious. I buy outright.
As others have said the sums are much more complicated for company owners who pay for their cars with funds which start off inside the company.
And different again for YouTubers for whom cars can be a business asset, and therefore the interest charges on finance can be tax allowable.
Finance: You buy a £100,000 car, no deposit, pay £1000 a month and sell it after a year for the exact loan amount, lets say £90,000. It cost you 12 monthly payments of £1000 that you paid tax on, £14,400 to own the car for a year.
Savings: Same rules, total cost is £120,000 in earnings to buy the thing, giving you £90,000 in your pocket at the end. So it cost you £40,000 to own the car for a year."
I presume your income will be the same whether you buy or finance. So assume your income is £120k and now do the sums. You will have more money left for things other than your car if you buy.
For me, having funds available to buy outright, if I finance I would release funds to invest. It would only be attractive to finance if I could rely on making a higher return from investment after paying tax on that return than the finance interest charges. Which would be ambitious. I buy outright.
As others have said the sums are much more complicated for company owners who pay for their cars with funds which start off inside the company.
And different again for YouTubers for whom cars can be a business asset, and therefore the interest charges on finance can be tax allowable.
Mr-B said:
The AM does have a lot of Merc bits though so may be able to get most of the bits he needs through other channels and not Aston.
Yes it shares mechanical parts but a lot of parts for the front end are unique, I would imagine headlamps will be bonkers money and not like you will find them on ebay plus I dread to think how much a front bumper is. Shinysideup said:
If he was still here he would've ran a mile anyway after seeing his very own Stan and the guy who was allegedly involved with servicing more than just his cars.
I think it is time to move on from that, he is back with her now AlexNJ89 said:
Shame to see Sam is selling his RS6 already. He really must've hated it.
https://www.autotrader.co.uk/car-details/202205135...
Rather disappointing, he bigged up his new car search took ages to buy something, bought an RS6 said he was gunna do some big trips in it and love it... for only it to be up for sale 2 months after he revealed it. stuff like this puts me off a channel quick and makes me wonder if he only had it as a loan for a few months.https://www.autotrader.co.uk/car-details/202205135...
WY86 said:
Rather disappointing, he bigged up his new car search took ages to buy something, bought an RS6 said he was gunna do some big trips in it and love it... for only it to be up for sale 2 months after he revealed it. stuff like this puts me off a channel quick and makes me wonder if he only had it as a loan for a few months.
Yeah especially as it’s back at Baytree cars where he got it from. Doubt it was a free loan, but looks very much like a ‘give us the £1000/m finance cost to rent it’ type deal. ThomW said:
Yeah especially as it’s back at Baytree cars where he got it from. Doubt it was a free loan, but looks very much like a ‘give us the £1000/m finance cost to rent it’ type deal.
He could of just said in his first 1500 miles video... Yeah guys i made a mistake and its not for me, rather than lording it and saying how good it was and he was enjoying it, Also suspicious that he already had a car ordered so more of a short term rental to bridge the time.WY86 said:
ThomW said:
Yeah especially as it’s back at Baytree cars where he got it from. Doubt it was a free loan, but looks very much like a ‘give us the £1000/m finance cost to rent it’ type deal.
He could of just said in his first 1500 miles video... Yeah guys i made a mistake and its not for me, rather than lording it and saying how good it was and he was enjoying it, Also suspicious that he already had a car ordered so more of a short term rental to bridge the time.WY86 said:
AlexNJ89 said:
Shame to see Sam is selling his RS6 already. He really must've hated it.
https://www.autotrader.co.uk/car-details/202205135...
Rather disappointing, he bigged up his new car search took ages to buy something, bought an RS6 said he was gunna do some big trips in it and love it... for only it to be up for sale 2 months after he revealed it. stuff like this puts me off a channel quick and makes me wonder if he only had it as a loan for a few months.https://www.autotrader.co.uk/car-details/202205135...
I wonder if Baytree had a deal with him that he sells the car back to them or they get first dibs when it comes up for sale as he knew he would only be doing a small amount of miles in it?
S54B32 said:
thanks for the comments chaps... plenty more videos to come
I'm editing another race vid at the minute and quite a lot happens. Failures, visits to the stewards, trophies... it's a pretty good race video. One of the best so far I think
eta: and yes, like the other youtubers here, i do check this thread now and then if I think I'm worthy of a mention on the almighty PH forum. Shame Shmee doesn't contribute here anymore but its not surprising
Sorry Dan wasn't being derogatory. You seem to make the video's you want and enjoy, rather than play the YT algorithms and have lots of click bait videos etc. Challo said:
I love watch Danny's video's but its a niche content and wont appeal to the masses. Obviously more views and ultimately more money would no doubt be better, but like other posters have said I don't think thats why he does it.
Yeah maybe - but most Youtube channels are niche in one way or another.I'm editing another race vid at the minute and quite a lot happens. Failures, visits to the stewards, trophies... it's a pretty good race video. One of the best so far I think
eta: and yes, like the other youtubers here, i do check this thread now and then if I think I'm worthy of a mention on the almighty PH forum. Shame Shmee doesn't contribute here anymore but its not surprising
As I said I enjoy the video's, so keep doing what your doing.
The other similar channel i like watching is Involvo'd as he just fixes up old volvo's
Challo said:
There might be an element of that, but I get the impressions he has other cars on order and they have come earlier than expected. I presume he cant afford the new cars, and the RS6 as the same time.
I wonder if Baytree had a deal with him that he sells the car back to them or they get first dibs when it comes up for sale as he knew he would only be doing a small amount of miles in it?
I probably would give him the benefit of the doubt if he hadn't strung it out so much. I mean the will he buy a defender, wont he buy a defender videos. I wonder if Baytree had a deal with him that he sells the car back to them or they get first dibs when it comes up for sale as he knew he would only be doing a small amount of miles in it?
Also if he knew that was the case why not be transparent about it instead of giving off the impression it was a long term car.
I guess i thought he was one of the more transparent youtubers…
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