Australasia Total cost at the driveway

[RTG]

Hi all...getting down to the driveway numbers.
Please tell me whether these calculations are completely wrong for Tasmania.
Duty it appears is paid on both GST and Luxury vehicle tax......mmmmm.

 

 

[Davman]

Option the Rough Pack - you get the Lockers and the BFG's for $2875 - saves $755  over buying them seperately.
In my mind, I can add a secondary top grade Lifepo4 battery and dual dc/dc charger  for a lot less than the additional battery cost - will wait to see what additional wiring they are adding though on this one before I decide.
Add the roof rack later aftermarket - I reckon you will get it a lot cheaper - and more options with awnings etc.
5 year Warranty on Accessories in Australia though is almost too hard to ignore though
And hopefully, fingers crossed, INEOS have arranged that no LCT be charged.

EDIT:  One thing I noted on the new Australia brochure is that the car comes with an Alarm and Immobiliser as standard, its just that if you want a more advanced one then its $340 more.

 

[grenadierboy]

Hi RTG-

Yes - fingers cross for no GST.

but, no heated seats for snow filled Tassie - I'm in Victoria and I'm getting them!

 

[RTG]

Yes Mark,

I fear we are "snookered" if this is the correct ATO interpretation. LCT was to protect the domestic car manufacturing industry.......no domestic car manufacturing, but hey the Government just forgot to remove the LCT.......bugger.

 

 

[Davman]

I reckon INEOS APAC have got an ACE up their sleeve on this, they just haven't played it yet.
A few other manufacturers have played it in the past, I cannot see why INEOS won't.

 

[grenadierboy]

Sorry - I mean't to say LCT not GST!

Davman - if they do indeed have the ace (to remove the impost of LCT )- I wish they would play it now because if LCT does apply I will need to reduce my overall spend - meaning less options!!

 

[RTG]

Talk to Clive Palmer and Craig Kelly, they seem to be the only sensibles ones about at thee moment.

 

[Davman]

I reckon they are just waiting for an ATO ruling. 
I cannot see why the 2DR Utility wont be LCT exempt, and I reckon if they push hard, then the 5dr Station Wagon will be exempt too.

We aren't going to know until the 18th at the earliest, and even then INEOS might not know for another few months.

 

[HT]

As it stands, about $20k of my purchase price will be from add on's, options, and extras.  According to the ATO, I will (all Aussie purchasers will) have to pay LCT for the value of those options.

If the local dealer can supply all of the extras that we are considering, then it might possibly be worth just buying the most basic version you can (for me, the trialmaster), and then adding the extras on, after the sale. 

Given I'm looking at about $20k in extras, the Fed Govt is going to slot me LCT for those upsells too if I have them installed before sale - this tax is at 33%, meaning the 20k in options will attract a $7,000 tax.  It also means that when looking at the price of any option, you really need to add 33% to the price of that option to work out how much it will really cost you. Take for example the winch at $5,430 ... when one includes the LCT that will be tacked on, it is actually going to cost you $7,240 - suddenly that winch it a crazy price.

Surely this is something Ineos can work around - possible finalise the contract in, say September with a notional handover at that time, and full payment, and then after LCT, and stamps are settled, the extras could be purchased and installed.  Might increase the buyer's budget to include a few more shiny trinkets... a little food for thought, Ineos.

 

[Davman]

Absolutely agree.

Dont forget too that there are many other on costs to adding the accessories at time of original purchase.
In Victoria at least, add another 8.4% to cover the  Stamp duty.
If you are a Business, then you cannot deduct any of these accessory as expenses either - which on $20,000 is another $5,000 hit.

However, if you add these others as bits and pieces as the months go by, then you don't get hit with any of these additional Taxes.  You have to be careful here as the ATO can still deem the accessories as being part of the original purchase, if they are done too close to the delivery of the vehicle.  So INEOS will be very careful on this.

That being said, if the accessories are readily available as aftermarket options through INEOS/Dealers, and are still covered by a decent warranty, then adding them after original purchase is definitely the way to go.

 

[grenadierboy]

Agree but the Australian distributor/servicer for the Grenadier will most certainly charge a fee to instal any accessory purchased 

 

[Davman]

[QUOTE username=Mark Evans  grenadierboy userid=8954799 postid=1332634097]Agree but the Australian distributor/servicer for the Grenadier will most certainly charge a fee to instal any accessory purchased [/QUOTE]

True, but I would imagine the overall cost of getting it from INEOS supplied and fitted, wouldn't be that much cheaper from the cost that the  Dealer could/would charge for it.

 

[HT]

[QUOTE username=Mark Evans  grenadierboy userid=8954799 postid=1332634097]Agree but the Australian distributor/servicer for the Grenadier will most certainly charge a fee to instal any accessory purchased [/QUOTE]

Yeah, you're absolutely right, Mark. There is also a value in convenience too that needs to be factored in.

I guess we need to weigh up whether labour will be cheaper/more expensive than LCT and stamp duty etc.  If the difference is marginal, I would certainly rather put the money in the hands of my local car dealer, rather than the tax office.

 

[DaveB]

I am going to be financing the majority of the price so if I get accessories at time of order then these are also financed. If I buy them from the dealer I have to pay cash. 
I can deduct the interest on tax and write down the cost of the vehicle on tax also. 

 

[Davman]

I am going to be financing the majority of the price so if I get accessories at time of order then these are also financed. If I buy them from the dealer I have to pay cash. 
I can deduct the interest on tax and write down the cost of the vehicle on tax also. 

If you are going to write down the cost of the vehicle on tax  through a business, then you can only do it to the maximum of the depreciation limit.  Which is a maximum of $60,733.  You can only claim the interest on a loan of up to the same limit - even if your loan is twice the price.

 

[DaveB]

Yes. I am planning a 40-50% balloon which means the loan will be for about $60K. 
I can then refinance the balloon in 5 years and it all starts over

 

[emax]

> and are still covered by a decent warranty

If you can save e.g. $5000 with the suggested procedure, what is the warranty compared to this? If an accessory of $1000 fails, which is in general unlikely for "static" equipment (i.e. no moving parts, no serious stress), you still have at least saved $4000.

This has been my strategy since years for all my purchases from china: the few problems I had did by far not reach the savings I had.

 

[grenadierboy]

and if you do decide to add some options/accessories post purchase (for tax related reasons) purchased from your nearest dealer/servicer or direct from Ineos, then some can be added by you rather than paying the dealer to do it; e.g. roof racks

 

[Davman]

Personally, I like installing stuff to my car myself - a few cold cans per job is usually how I, and the beer flow.

Some options obviously you get done from factory, but accessories will get done after the original purchase.

For me as an example if I get a $1000 accessory put on from factory then the following $'s apply as I am buying it through my personal business.
$1000 Inc GST for the Item
$330 in LCT
$84 in extra Stamp Duty.
Total Cost $1414  of which NONE is Tax deductible.

However if I buy the same Item after the original vehicle purchase:
$1000 Inc GST for the Item
No LCT or Stamp Duty apply
Now I can claim back:
$90 in GST
I can claim $910 as an expense, which mean a tax reduction of $227

So one way I am out of pocket by $1414, the other way I am out of pocket by $683

 

[grenadierboy]

OK but these numbers are based on your Grenadier being fully a work vehicle?