Finance Options (chattel Mortgage)

[mcmn]

Hello,

I currently operate under a company structure and as such I'm looking at purchasing a car through my company to enable me to maximise the taxation benifits.

This is where I run into some questions... I have approval from Subaru Finance for a subaru, but if i was to contemplate any older car (1999 R34 GTR) are there any lenders out there that will offer a chattle mortgage for this?)

Looking for anyone with experience or advice in this field to post their views on the best way forward!

Paul

[nizmonut]

unless you intend on keeping this car for a loonnnnnnnnnnnnnnnnngggggg time taking out a mortage to pay for a

car is not a great idea....firstly in the worlds economic climate at the moment you are going to be hard pressed to find a lender who will give a loan for a folden falcodore let alone a twin turbo japanese supercar,

the best way to do it is to go to your bank and with a buisness plan saying you want X amount of dollars for " buisness expansion".

for example dont walk in there as a sign writer saying you want a sick as rolling billboard to post your handy work on? they just say why not a toyota hilux?

thats where banks lending istitutions and insurers make there money. not on the limited edition audi Q7's,

they are in the market of making money on mass, insure the house mums toyota echo shopping trolley and lots of them.

the bank manager will investigate the market that you are in I.E signwriting and will wiegh the risk, because after all, it is there money and they want a return on it, and a good one in the vacinity of 18 to 27% return, thats alot of intrest,

your 19,995 dollar gtr turns into 35,995 over a period of 10 to 15 years on a mortagage.

not only that, the gtr isn't a 2 acre section with a four bedroom house and double garage, its a car, and cars depreciate at the average rate of 1000 dollars a year, over 10 to 15 years your car is now a book value of 5 to 9 thousand dollars.

and if you crash it your screwed because the bank owns it and if its your fault they arent gonna give you the money for another one.

the best ever way (and cheapest) to pay for a car is cash,

an unsecured loan so the car isnt a chattle, but the

intrest is higher,

a car loan, but being a private buisness operator its even harder to get loans because youre a greater risk, 60% of small buisnesses fail in the first year and then of the other 40% only half make it past the 3 year mark.

thats what your facing, and then after all of that and you decide you want to sell or close up your buisness activities you have to pay back the gst on the car if you want to keep it. and thats not gst on its current value, thats the gst when it was bought.

i have been through this and if you havent got the capital the best way is probably a personal loan or unsecured,

dont go secured because if you injure yourself at work and cant make a living the repo man will come knocking. not cool.

[Duncan1]

Hello,

I currently operate under a company structure and as such I'm looking at purchasing a car through my company to enable me to maximise the taxation benifits.

This is where I run into some questions... I have approval from Subaru Finance for a subaru, but if i was to contemplate any older car (1999 R34 GTR) are there any lenders out there that will offer a chattle mortgage for this?)

Looking for anyone with experience or advice in this field to post their views on the best way forward!

Paul

Yes!! Esanda will finance an R34gtr.

If you have had your abn for more than 2 years and have good credit, all they will ask you to do is sign a declaration that you can afford the repayments. no financials required...

[Duncan1]

"i have been through this and if you havent got the capital the best way is probably a personal loan or unsecured,

dont go secured because if you injure yourself at work and cant make a living the repo man will come knocking. not cool."

You can insure yourself against this happening C.E.C.I and in my opinion you [and the bank] would be crazy to get an unsecured loan. The interest rate would be huge and no bank i know will give you 45-50k without anything of security to sell if you leave the country!!!