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I am no accountant.

My understanding is

* the car should be registered in your company name – yes the fees etc are higher but its all tax deductable

* you can claim 50% tax deduction on the purchase price in year 1 + depreciation or whatever other method you choose to use (ask your accountant for the best option for you)

* you can claim the gst back straight away if you do a chattel mortgage

* your interest is tax deductable as are your other expenses (insurance, rego, dealer delivery..)

* agree with FletcherTax, you carry the loss forward until your income offsets it

* you need to order before Dec 31 2009, and take possession of the car before Dec 31 2010

* more info here – http://www.ato.gov.au/businesses/content.asp?doc=/content/00193781.htm

and to copy FletcherTax’s disclaimer:

Please note comments made should NOT be taken as specific taxation, financial, legal or investment advice. Please seek professional, specific advice.