The Australian Taxation Office (ATO) has confirmed that legislation in relation to the increased LCT rate of 33% for new cars will not be passed by 30 June 2008. However, the government has confirmed that the new rate will be made retrospective and become applicable from 1 July 2008.
The Australian Tax Office has announced the revised cost price depreciation limit on
new cars and used cars for the 2008/2009 income year is $57,180. This is an increase in the limit by $57 from 2007/2008 period.
The car tax threshold for luxury vehicles is the same as the car depreciation limit and
‘Lluxury Cars’ above $57,180 are subject to luxury car tax on the portion of the value of the vehicle exceeding $57,180. The GST Act also limits the input tax credit entitlement for a luxury car to 1/11th of the depreciation limit (i.e. $5,198.18).
Is this a car that you would be happy to drive for the next 5 years?
Don’t underestimate the significance of the car test drive. We recommend that you ask to test-drive the car under various road conditions. Taking a car on a test drive down hill with no traffic lights in sight, may well be the dealers idea of a dream test drive but this sort of test drive will not provide you the opportunity to take the car through its paces in a realistic manner.
Be sure to listen when you first start the engine, to make sure that its starts immediately and there are no unusual noises.
Apply the brakes regularly through out the test drive and feel and listen for sign of wearing that may indicate that further inspection may be required.
The body condition of a car can often provide a good indicator as to how well the car has been maintained. Look for signs like orange peel or rough and uneven painting that may indicate paint or panel repair. Don’t be afraid to ask if the car has had any repairs if you see any items that don’t appear genuine.
Underneath the car you can search for oil or fluid leaks as well as any wear and tear to the under body that could be related to off-road or irregular use of the car.
Make sure the car has a spare tyre in roadworthy condition and as obvious as it may be check to see that the jack and toolkit are with the car. Lift the internal car mats to check the condition of the original carpets and if the car is fitted with seat covers ask if they can be removed to ensure no damage to the original upholstery like cigarette burns or stains.
Have a listen to the car engine with the bonnet and listen for any obvious or unusual noises. Check the condition of the belts, hoses and fluid levels inside the battery. Check the colour of the engine and transmission oils, as these can both good indicators to suggest if the car has been well maintained.
Make sure all the cars doors open and close easily, and that handles and locks work well as making sure any electric powered windows and mirrors are in working order.
With all of the se checks out of the way, it’s important to complete your purchase by choosing the best car loan to meet your needs. If you would like to speak with a car loan consultant about arranging the best car loan or car lease for your needs, please call 1300 887 967 and we will be only too pleased to assist.
The South Australian Government has reduced rental duty rates applying to Hire Purchase
and Lease Agreements from 0.5%to 0.25% as from 01 July 2008.
In addition, a lower rate of mortgage duty applicable to Chattel Mortgage and Consumer
Loans will apply at a rate of 0.15%.
For the first $6,000 advance, the stamp duty is $10.00 and then $0.15 for each $100 over
the amount of $6,000.
All Madison Finance car finance and car loan agreements will be adjusted accordingly as of 1st July 2008 to reflect these new changes.
After carefully considering how much you can afford to spend on your car loan payments, we recommend that where a car meets your needs you would rather buy a smaller car that’s newer than a large car that’s older. The costs of owning a larger will be more the running costs - fuel, maintenance, tyres, spares are expected to be higher. We recommend you will find the best value in something almost new - two years or younger.
When you choose a car between 3-5 years old and has been treated well by its owner could also provide good value for money. Used cars that have travelled between 15,000 to 20,000 kms a year are great buys.
Ex-Fleet or Rental Cars
Can represent great value, but you need to consider that these cars have been driven by hundreds of different people in most cases with little or no regard to the treatment of the car.
Odometer Fraud
Make sure that you purchase a car history report to protect you against odometer fraud. Once substantially more common than can be found today, there are still numerous examples of consumers being taken advantage of by deceptive sellers. If there is a unusually high wear and tear on the drivers seat, accelerator and brake pedals, its usually a good indicator that further investigation may be required A good indication.
By investing so much time in ensuring your have the best car finance, don’t be too quick to choose a car without getting a mechanical inspection for your peace of mind. Basic mechanical inspections can costs as little as $100 and can provide great peace of mind.
