New Car Opinions

[highballin]

The situation is I have had a Ford Mondeo as a company car last 3 years and term is up. I have the option of a new Ford Mondeo or taking 15k car allowance. Leaning towards the car allowance.

Mondeo has been good but I find it a little big and clumsy in city traffic. Looking for something smaller and more nimble but also that I can get clubs and buggy in and leave in most of the time.

Anyone driving something that fits that bill.

$25k budget tops only want to get from A to B in relative comfort. Generally don't go over speed limit unless Coalesce is jibba jabbing and I don't see the speed limit sign:lol:

[Johnny Canuck]

The situation is I have had a Ford Mondeo as a company car last 3 years and term is up. I have the option of a new Ford Mondeo or taking 15k car allowance. Leaning towards the car allowance.

Mondeo has been good but I find it a little big and clumsy in city traffic. Looking for something smaller and more nimble but also that I can get clubs and buggy in and leave in most of the time.

Anyone driving something that fits that bill.

$25k budget tops only want to get from A to B in relative comfort. Generally don't go over speed limit unless Coalesce is jibba jabbing and I don't see the speed limit sign:lol:

15K is relatively low for a car allowance and you will most likely only breakeven unless you write off a boatload of the driving or take a novated lease.

I have had company cars and currently receive a car allowance.

I would take a fully maintained company vehicle 10/10 times.

[davepuppies]

Previously I have had a car allowance of 16-18k, in my current role I have a fully maintained car, but about to switch roles, and am taking a 18.5k allowance.

[highballin]

15K is relatively low for a car allowance and you will most likely only breakeven unless you write off a boatload of the driving or take a novated lease.

I have had company cars and currently receive a car allowance.

I would take a fully maintained company vehicle 10/10 times.



Previously I have had a car allowance of 16-18k, in my current role I have a fully maintained car, but about to switch roles, and am taking a 18.5k allowance.

Thanks Guys wasn't sure on what the going rate was.

[davepuppies]

You can take what ever you want, from your salary and use it as tax free car allowance,my ou just need to be able to justify it, cover it in running costs.

As I own my car outright and is now 4 years old, I can't depreciate enough out of it and will likley need to upgrade this FY

[Sydney Hacker]

15K is relatively low for a car allowance and you will most likely only breakeven unless you write off a boatload of the driving or take a novated lease.I have had company cars and currently receive a car allowance.I would take a fully maintained company vehicle 10/10 times. So long as there is no restrictions on personal use i.e. holidays, interstate etc. I would stick with the fully maintained company car everytime.

[Johnny Canuck]

You can take what ever you want, from your salary and use it as tax free car allowance,my ou just need to be able to justify it, cover it in running costs.

As I own my car outright and is now 4 years old, I can't depreciate enough out of it and will likley need to upgrade this FY

How do you use it as a tax free car allowance?

Car allowances are assessable incomes.

[PeteyD]

I think he is thinking of salary sacrifice.

[Johnny Canuck]

I think he is thinking of salary sacrifice.

Even so, only part is tax free.

Just a little curious.

[PeteyD]

yea and there are FBT issues as well.

[coalesce]

Can anyone explain in layman's terms how salary sacrifice works from a tax point of view?

I understand the sacrifice part is before tax, but what do you get stung for at tax time?

[davepuppies]

Car allowance is tax free as long as you can justify the total.

It if you receive 18k, and over the year, with receipts spend 18k on petrol (apportioned to business use) rego, insurance, servicing, tyres and finally depreciation come tax time you shouldn't have to pay tax on the allowance.

It is not taxed at time of disbursement from your employer to you, and you only pay tax if you haven't covered it.

FBT is only payable on private use of a company car, and most employers will cover that..... Or keep smarter log books.

[Johnny Canuck]

Can anyone explain in layman's terms how salary sacrifice works from a tax point of view?

I understand the sacrifice part is before tax, but what do you get stung for at tax time?

You don't get stung anything at tax time.

Employee contribution method is by far the most common method used to calculate payments, etc.

You pay a portion of your lease and running costs pre tax (before you pay income tax) and a portion post tax, which is after you have paid tax.

If you didn't novate the vehicle, you pay everything post tax, just for comparison.

The main benefits of novating are that you save the GST on the initial purchase price, save GST on running costs and you don't pay income tax on a good chunk of your payments. There is GST payable on the residual (balloon) payment.

[Johnny Canuck]

Car allowance is tax free as long as you can justify the total.

It if you receive 18k, and over the year, with receipts spend 18k on petrol (apportioned to business use) rego, insurance, servicing, tyres and finally depreciation come tax time you shouldn't have to pay tax on the allowance.

It is not taxed at time of disbursement from your employer to you, and you only pay tax if you haven't covered it.

FBT is only payable on private use of a company car, and most employers will cover that..... Or keep smarter log books.

The majority of the time car allowances are taxed at disbursement and you can claim the tax back at tax time.

When keeping log books you need to be careful and travel from home to work and work to home is not considered part of your work travel

[coalesce]

You don't get stung anything at tax time.

Employee contribution method is by far the most common method used to calculate payments, etc.

You pay a portion of your lease and running costs pre tax (before you pay income tax) and a portion post tax, which is after you have paid tax.

If you didn't novate the vehicle, you pay everything post tax, just for comparison.

The main benefits of novating are that you save the GST on the initial purchase price, save GST on running costs and you don't pay income tax on a good chunk of your payments. There is GST payable on the residual (balloon) payment.

Thanks. Useful info :)

Is there a limit to how much you can do pre tax?

[davepuppies]

The majority of the time car allowances are taxed at disbursement and you can claim the tax back at tax time.

When keeping log books you need to be careful and travel from home to work and work to home is not considered part of your work travel
I have never had my car allowance taxed at disbursement..... Perhaps it is industry specific ( I am in corporate real estate and banking)

Most of my days start from home, and is travel to my first client or meeting.

I have always held a second car (for wife) in my name, and that enables me to claim a higher percent of my business usage as we have a justification should I be audited.

My best piece of advice- speak to your accountant and get a structure that works for you individually.

[Johnny Canuck]

Thanks. Useful info :)

Is there a limit to how much you can do pre tax?

The post tax amount is determined by 20% of the FBT base price of the vehicle, which is the purchase price, including GST less on roads.


I have never had my car allowance taxed at disbursement..... Perhaps it is industry specific ( I am in corporate real estate and banking)

Most of my days start from home, and is travel to my first client or meeting.

I have always held a second car (for wife) in my name, and that enables me to claim a higher percent of my business usage as we have a justification should I be audited.

My best piece of advice- speak to your accountant and get a structure that works for you individually.

I am considering switching one of my novateds over to the operating cost method. Every entry in my log book would have me travelling straight to an appointment and returning home from an appointment.

I will disagree on the accountant comment. In my years in the industry, the number that don't understand the product or give incorrect "advice" is staggering.

[Blackhelmo]

FWIW, I have had use of a work ute in my last two roles and haven't had to worry about FBT or any other issues that come with the trappings of a work vehicle.

[Grunt]

Not a new car as such but what are the opinions for Land & Range Rover vehicles? Looking at an upgrade for Rachelle's car as my new work car will be on the smaller side. Looking at 2 today
2005 Range Rover Sport
http://www.carsales.com.au/dealer/details/_/OAG-AD-10669763

&
2008 Land Rover Freelander 2
http://www.carsales.com.au/dealer/details/_/OAG-AD-12726076

Any advice on known faults problems would be appreciated.

[WBennett]

Not a new car as such but what are the opinions for Land & Range Rover vehicles? Looking at an upgrade for Rachelle's car as my new work car will be on the smaller side. Looking at 2 today
2005 Range Rover Sport
http://www.carsales.com.au/dealer/details/_/OAG-AD-10669763

&
2008 Land Rover Freelander 2
http://www.carsales.com.au/dealer/details/_/OAG-AD-12726076

Any advice on known faults problems would be appreciated.

Calling Canuck.

Until last weekend, I didn't know any friends with RR's. But one of the netball Dad's sold his 2012 Range Rover last week at 90000km - the maintenance costs were getting increasingly large, and he figured it was worth selling before it completely depreciated.

And no, not sure of which model - it was just a sideline chat. He has since bought another BMW X5.

[Johnny Canuck]

Calling Canuck.

Until last weekend, I didn't know any friends with RR's. But one of the netball Dad's sold his 2012 Range Rover last week at 90000km - the maintenance costs were getting increasingly large, and he figured it was worth selling before it completely depreciated.

And no, not sure of which model - it was just a sideline chat. He has since bought another BMW X5.

I am no expert, but the reality of these are that they are expensive to maintain and you are looking at 11 and 8 year old vehicles.

It's a crap shoot. Be prepared to pay a good chunk of change for repairs, especially if due for a major service.

With so many great deals on new cars nowadays, i personally wouldn't look at something that old as there will be a lot of unexpected repair costs.

[Johnny Canuck]

And also, taking care of your dealer, don't enquire through Car Sales unless you are very serious about seeing the car as it costs the dealer $43 ex GST every single time that you submit an enquiry.

[Daves]

The old RR Sports is a big, super heavy mother. The new model shed something like 500kgs I think. With weight comes heavy wear and tear. The Discos have a big following, but it is mainly for its off road abilities. I know a few who got rid of theirs due to issues.They were basically a truck to drive otherwise. The Freelanders I have heard little about. You are talking a maker who has a dismal record on build quality, so you would want a solid service history with receipts and a full inspection check.

[Captain Nemo]

Anyone got, or know anyone with an Audi Q5?
Missus is keen on the S-Line.

[Daves]

Anyone got, or know anyone with an Audi Q5?
Missus is keen on the S-Line.

They have just updated the SQ5. I know a few who have one of the old diesel model and I haven't heard anything negative about them. The 3.0 Litre Turbo diesel is a well known and a highly regarded motor, used across the group on VWs and Porsches, and possible shortly even in a Lambo SUV! The SQ5 is a bit of a missile! if your Mrs is a bit of lead foot, she will love it. It will leave a lot of unsuspecting V8s for dead at the lights!

[Grunt]

Not a new car as such but what are the opinions for Land & Range Rover vehicles? Looking at an upgrade for Rachelle's car as my new work car will be on the smaller side. Looking at 2 today
2005 Range Rover Sport
http://www.carsales.com.au/dealer/details/_/OAG-AD-10669763

&
2008 Land Rover Freelander 2
http://www.carsales.com.au/dealer/details/_/OAG-AD-12726076

Any advice on known faults problems would be appreciated.

Went and looked at the Range rover today, was an absolute shitbox. Bald tyres, crazed headlights & trim falling off doors. Amazing how pictures can hide that stuff. less than 2 minutes walking around it and I was not interested.

[Captain Nemo]

They have just updated the SQ5. I know a few who have one of the old diesel model and I haven't heard anything negative about them. The 3.0 Litre Turbo diesel is a well known and a highly regarded motor, used across the group on VWs and Porsches, and possible shortly even in a Lambo SUV! The SQ5 is a bit of a missile! if your Mrs is a bit of lead foot, she will love it. It will leave a lot of unsuspecting V8s for dead at the lights!

Cheers Dave.
Yeh looking at the Turbo Deisel I think the v6?
She's a lead foot, I've had the 00 wrx and 07 turbo forester and she drove them harder than me....

[kiwitown]

Went and looked at the Range rover today, was an absolute shitbox. Bald tyres, crazed headlights & trim falling off doors. Amazing how pictures can hide that stuff. less than 2 minutes walking around it and I was not interested.

Mate I'm a big fan of range rovers but if it's more 5 years old stay away from it..

[Grunt]

Mate I'm a big fan of range rovers but if it's more 5 years old stay away from it..
No worries Kiwitown. Options changing by the hour.
The Freelander is being brought to our home on Sunday for a look/see
Another option popped up tonight at the wife’s suggestion, Brand new Ford EcoSport.
Main part of the dilemma is that Rachelle's current car (VW Up) cant have roof racks fitted for my surf Ski. New work car cant have racks fitted.
Options thought of so far, - $20K nett spend looking at $5-8K trade in for the Up, should be able to get $8.5-10K private.
Dual Cab Ute - Wife not real keen on that as her everyday drive
Soccer Mum Car - Freelander etc
New car $25-27K less trade in

[Dotty]

A 2009 Mondeo with roof racks may be on the market soon.

[Grunt]

A 2009 Mondeo with roof racks may be on the market soon.
Rachelle even brought the Mondeo option up, the poor little Up! just is not able to do the job. Fully optioned it will be perfect for someone.

[kiwitown]

Mate it's hard to find a car that covers all bases. Mate I have a 2014 prado as my personal car and a Holden Cruze as my work car. So one is to small for golf and the other is probably not going to suite your wife. My wife on the other hand has a 2014 VW TIGUAN. As a company car. It's the first VW we have ever had and it's great. I have two teenage children and it fits them in fine with plenty of get up and go. I was in carsales for 11 years across 5 different brands and I can say it's one of the best cars I have driven in a while...

[Grunt]

Looked at a few cars today, the options have not got any closer. The only thing that Rachelle and I have agreed on and that is the max spend, $25K. Have now decided that the VW Up! will be sold privately as it is too optioned up to get any sort of realistic trade in, lower spec models in the market for 7-10K. Was offered 3K max today at a dealer for a $25K purchase.

Cars looked at today

Holden Trax (New) :(
2012 Mazda CX5 :( 2K3-26K. Think i found a common fault with the carpet coming loose in 3 cars we looked at.
2010 Mercedes Benz CLC200 40000km. $23K Was nice but not so practical.
2014 Jeep Compass. $22K felt nothing with it, nice but never ticked any buttons with wanting it.
2014 Kia Soul, $21K Rachelle liked this car, big step down in features from the Up!

Looking at the Freelander 2 HSE tomorrow, they are bringing the car to me.

[WBennett]

Have a look at a 3 year old Kia Sportage Platinum TD. 23ish should get you close and you could get a year or two warrenty left over.

[Progolfgear]

Looked at a few cars today, the options have not got any closer. The only thing that Rachelle and I have agreed on and that is the max spend, $25K. Have now decided that the VW Up! will be sold privately as it is too optioned up to get any sort of realistic trade in, lower spec models in the market for 7-10K. Was offered 3K max today at a dealer for a $25K purchase.

Cars looked at today

Holden Trax (New) :(
2012 Mazda CX5 :( 2K3-26K. Think i found a common fault with the carpet coming loose in 3 cars we looked at.
2010 Mercedes Benz CLC200 40000km. $23K Was nice but not so practical.
2014 Jeep Compass. $22K felt nothing with it, nice but never ticked any buttons with wanting it.
2014 Kia Soul, $21K Rachelle liked this car, big step down in features from the Up!

Looking at the Freelander 2 HSE tomorrow, they are bringing the car to me.


The VW Tiguan is a really nice car in that 'soccer mum' category, well worth a proper look if you haven't already.

[Grunt]

Thanks everyone for the advice and it was all considered, we ended up buying the Freelander 2 after much consultation with both the internet and family/friends that have or own the brand. It was too good a deal for the money and condition. Yes it is a 8 year old car but for the money it was worth it.

41397

[WBennett]

Thanks everyone for the advice and it was all considered, we ended up buying the Freelander 2 after much consultation with both the internet and family/friends that have or own the brand. It was too good a deal for the money and condition. Yes it is a 8 year old car but for the money it was worth it.41397Good luck