Home – New Forums Money matters Buying my private car

  • This topic is empty.
Viewing 6 posts - 1 through 6 (of 6 total)
  • Author
    Posts
  • #983476
    AgentMail
    Member
    • Total posts: 1,741
    Up
    0
    ::

    Hi All,

    I just want to find out the best way to go about this. My current personal car, which is under a finance agreement, is used wholey and solely for business purposes (we have a second car that has the baby seat etc.)

    I basically want our business (a pty ltd company) to purchase the vehicle, so that it is neat and tidy and everything goes through the business.

    My question is, is this possible, is there some info about how much the business can pay etc.? I know if I went to a car yard and purchased a car in the business name, it would be no hassle, but I am worried because it is my car and my company, that it make be suspicious or something for the business to buy the car from me.

    Thanks in advance for the help

    #1142523
    KellyB
    Member
    • Total posts: 65
    Up
    0
    ::

    I think so long as the transaction was at market value, there wouldn’t be an issue. You could use value from redbook or something similar to support the sale price.

    #1142524
    Charles Liu
    Member
    • Total posts: 3
    Up
    0
    ::
    AgentMail, post: 162997 wrote:
    Hi All,

    I just want to find out the best way to go about this. My current personal car, which is under a finance agreement, is used wholey and solely for business purposes (we have a second car that has the baby seat etc.)

    I basically want our business (a pty ltd company) to purchase the vehicle, so that it is neat and tidy and everything goes through the business.

    My question is, is this possible, is there some info about how much the business can pay etc.? I know if I went to a car yard and purchased a car in the business name, it would be no hassle, but I am worried because it is my car and my company, that it make be suspicious or something for the business to buy the car from me.

    Thanks in advance for the help

    Hello
    We’ve just recently transferred (sold) our business car to personal use. Our accountant reviewed our depreciation and http://www.redbook.com.au to provide a reasonable value for the car. Just note when you do sell there is a stamp duty of transfer which is 3% of the agreed transferred price (if below $45000). or 5% of over $45000.

    Best of Luck

    Charlie
    Cubic Promote
    http://www.cubicpromote.com.au

    #1142525
    MH08
    Member
    • Total posts: 284
    Up
    0
    ::

    Ring your bank manager up, ask them for a lease buyback for the business.

    Provide necessary paperwork for the finance and wait for approval.

    Out of pocket costs will be the re-insurance under the business and transfer of registration, both of which will be higher than your paying now.

    Market value, I wouldn’t worry about it, nor will the bank (as long as the repayments keep coming in), the only company that will have concern is the insurance company and you want to make sure you insure it as the value you paid for the vehicle. Other than that the insurance company will most likely determine its value anyway unless you offer to pay a premium for the level of cover you want.

    Just recently moved one car into the business, it had $43K owing on $100K car, sold it to my company for $43K and re-financed at the new low rate (business), insured for $100K.

    #1142526
    DrMegs
    Member
    • Total posts: 12
    Up
    0
    ::

    The problem would be if you want to maximise dedications on it for your company.

    I may be wrong but I believe there is an age limit on how old the car can be to get the full benefit of “company car” tax breaks.

    I don’t think you can even lease a car if it is over four years old.

    #1142527
    cametarkie
    Member
    • Total posts: 1
    Up
    0
    ::

    Hi there, on a similar note…

    I’m leaving my salaried job to start a business but whilst it is at development stage I will be freelancing to bring in income (ie. consulting, tutoring, labouring, cleaning, renting out spare room ie. whatever pays the mortgage).

    I have an ABN (which I will use for invoicing my various clients) but I’m not registered for GST. I also don’t think that I will need to register for GST over the coming year.

    As I am giving up my salary sacrificed work car, I’ll definitely need wheels. I have finance approved for a chattel mortgage to purchase a car, I’m just wondering if there’s any point purchasing it using the ABN given the info I’ve provided above?

    Is it simplest to just purchase a car in my name, then through the year keep receipts and then let an accountant work out deductions/depreciation etc for business purposes at the end of next financial year?

    As an only ever (to date) PAYG poster, any advice would be of great help even if you can see that I’ve made some glaringly obvious assumption or blunder or completely oversimplified things.

    many thanks :-)

Viewing 6 posts - 1 through 6 (of 6 total)
  • You must be logged in to reply to this topic.