I started an electrical business a few months ago that is going well. In need of a new car but unsure of which way to go about getting it. As a new business is leasing a car the way to go? Or fronting up the cash and buying outright? Also brand new or used?
Thanks in advance

New v Used: depends on what you prefer. my personal opinion is that when you buy a new car it loses $10k in value on day one. For that reason I have always bought used.....but its up to your preference really

Lease v buy:
a: If you LEASE a car, 100% of each payment is tax deductible and you claim GST on each payment. you dont own the car until its paid off so you dont claim depreciation

b: If you CHATTEL MORTGAGE a car, you claim 100% of the GST on the car immediately, and the payments include an interest component (deductible) and a capital component (non deductible). You also will claim depreciation on the car because you own it immediately

c: if you pay cash for the car, you get to claim the depreciation, but you have no interest to claim. You also claim the GST immediately.

I generally advise to go with a chattel mortgage because you get the GST back quicker than a lease, but if you have the cash then you might be better off to save yourself the interest cost and buy it outright......

cheers
BC

Hi,

If you want to buy a new car and want a loan for that, I can help you to get a good interest rate.
Please text me 0426440379

Regards,

Avijit