BMW 1 Series Coupe Forum / 1 Series Convertible Forum (1M / tii / 135i / 128i / Coupe / Cabrio / Hatchback) (BMW E82 E88 128i 130i 135i)
 





 

View Poll Results: How do you purchase your vehicle
Upright (full amount payment from savings) 20 42.55%
Finance with dealer 19 40.43%
Loan (bank, family) 8 17.02%
Voters: 47. You may not vote on this poll

Post Reply
 
Thread Tools Search this Thread
      02-02-2013, 11:43 PM   #1
Bruno28
First Lieutenant
Australia
50
Rep
353
Posts

Drives: 125i F20 M-Sport
Join Date: Aug 2010
Location: Sydney

iTrader: (0)

Quick buying question poll

How do most you guys purchase their vehicle, just an interest to know.
Appreciate 0
      02-03-2013, 02:42 AM   #2
Scoobs
Banned
7
Rep
252
Posts

Drives: 135i Space Grey DCT
Join Date: Sep 2009
Location: Sydney Australia

iTrader: (0)

CHP for me as I tend to flip every 2 to 2.5 years, and car is a tax deduction
Appreciate 0
      02-03-2013, 02:50 AM   #3
VGR00
Major
VGR00's Avatar
Australia
52
Rep
1,497
Posts

Drives: 430i Gran Coupe
Join Date: Feb 2007
Location: Brisbane - Australia

iTrader: (1)

CHP for me as well for the same reason as scoobs
Appreciate 0
      02-03-2013, 02:54 AM   #4
TS135i
piggy in the mirror
Australia
47
Rep
595
Posts

Drives: 2013 6MT 135i
Join Date: Jan 2013
Location: Sydney, Australia

iTrader: (0)

Business car via loan of some sort, personal weekender from the pocket.
__________________
135i Coupe N55 PPK+JB4
X3 30d LCI
Appreciate 0
      02-03-2013, 03:14 AM   #5
Alpine*
Brigadier General
Alpine*'s Avatar
Australia
1278
Rep
4,091
Posts

Drives: M2 G87
Join Date: May 2008
Location: Australia

iTrader: (0)

CHP, flip as often as I can, sometimes
Appreciate 0
      02-03-2013, 03:19 AM   #6
sparoz
Brigadier General
sparoz's Avatar
Australia
191
Rep
4,848
Posts

Drives: VO 1///M; Macan Turbo
Join Date: Jun 2008
Location: Sunshine Coast

iTrader: (0)

Although some might not agree with me, I much prefer to use my money to pay for a car upfront on other investments. Cars has always been an expense to me and it can stay that way until my investments options yield less than interest I need to pay on the cars. My accountant seems to like Chattel finance.

BMW rates and terms are generally very good, and you can always negotiate. Principal and interests are paid unlike recently found out one of my staff signed some stupid 13.1% interest paying interest first type loan arrangement with Esander, with the full interest due if contract is broken with a 7 year term. BMW rarely charge their break cost of $500 and it is proportional to terms left.

This is just my opinion .
__________________
Macan S Diesel - Carrera White
Macan Turbo - White
1///M - Valencia Orange
Appreciate 0
      02-03-2013, 04:20 AM   #7
Bruno28
First Lieutenant
Australia
50
Rep
353
Posts

Drives: 125i F20 M-Sport
Join Date: Aug 2010
Location: Sydney

iTrader: (0)

sorry for being uninformed, but what is "CHP"?
Appreciate 0
      02-03-2013, 04:28 AM   #8
Meijo
BEASTIE
4
Rep
39
Posts

Drives: ///1M Beast
Join Date: Jan 2013
Location: Condell Park

iTrader: (0)

Quote:
Originally Posted by Bruno28
sorry for being uninformed, but what is "CHP"?
Corporate Hire Purchase.
Appreciate 0
      02-03-2013, 04:32 AM   #9
Convert
Private First Class
8
Rep
190
Posts

Drives: MW F80 (6MT)
Join Date: Sep 2011
Location: Melbourne

iTrader: (0)

I'm with sparoz on this one. I think it should be "Outright", not "Upright". I think we all buy ours upright, unless there are some that buy theirs lying/upside down?
Appreciate 0
      02-03-2013, 04:34 AM   #10
bmw1mc
First Lieutenant
bmw1mc's Avatar
Australia
20
Rep
334
Posts

Drives: BMW 1M Coupe
Join Date: May 2012
Location: Sydney Australia

iTrader: (0)

Chattel mortgage. Business write for me
Appreciate 0
      02-03-2013, 04:41 AM   #11
Bruno28
First Lieutenant
Australia
50
Rep
353
Posts

Drives: 125i F20 M-Sport
Join Date: Aug 2010
Location: Sydney

iTrader: (0)

Quote:
Originally Posted by Convert View Post
I'm with sparoz on this one. I think it should be "Outright", not "Upright". I think we all buy ours upright, unless there are some that buy theirs lying/upside down?
hahah, true! I was trying to find the right word, english is my second language! I cant change though
Appreciate 0
      02-03-2013, 04:42 AM   #12
Bruno28
First Lieutenant
Australia
50
Rep
353
Posts

Drives: 125i F20 M-Sport
Join Date: Aug 2010
Location: Sydney

iTrader: (0)

Quote:
Originally Posted by Meijo View Post
Corporate Hire Purchase.
Oh, ok, thats lucky!
i guess it helps a lot.
Appreciate 0
      02-03-2013, 05:01 AM   #13
Scoobs
Banned
7
Rep
252
Posts

Drives: 135i Space Grey DCT
Join Date: Sep 2009
Location: Sydney Australia

iTrader: (0)

^ Commercial Hire Purchase has some tax advantages if you are fortunate enough to be in a position to claim a percentage of the use of your car as a tax deduction. Especially handy if you turn your car over frequently - ie less than 3 years.

All to do with the claiming of depreciation ( up to LCT ), and of course interest and costs of running the vehicle.
Appreciate 0
      02-03-2013, 05:04 AM   #14
sparoz
Brigadier General
sparoz's Avatar
Australia
191
Rep
4,848
Posts

Drives: VO 1///M; Macan Turbo
Join Date: Jun 2008
Location: Sunshine Coast

iTrader: (0)

Quote:
Originally Posted by Bruno28 View Post
Oh, ok, thats lucky!
i guess it helps a lot.
I think you get confused a bit here - CHP is also known is Commercial Hire Purchase (same thing as corporate hire purchase depends on who they are marketing to) - it has nothing to do with corporate. Basically it is an arrangement were the ownership stays with the financer until all the payments (plus the balloon) has been made and ownership will be transferred to you. Someone can correct me if I am wrong, but if the purchase price of the car is less than the LCT threshold, then they are treated as a lease - ie the who repayment amount is deductible.

For us who tends to buy cars over the LCT threshold, the point of CHP is a bit redundant as any lease arrangement over LCT is treated as a loan, and hence we tend to take out a chattel mortgage where it is just like a regular loan, but it is guaranteed by the chattel (which is the car). The advantage is that you take ownership of the car straight away - which specifically in the GFC handouts, that's the only way we can do it to claim the extra write-off.

Usually the requirement for CHP is a declaration that it is for majority business use and you don't have to be a corporate or a business to access the product. I believe there is some change or tightening of law that the lender needed to satisfied that the car is going to be for business use if you are buying in your own name. I think there were some issues with some consumers who was offered the products and ended up learning the hard way that they are no longer protected by the consumer law, as CHP and Chattel Mortgage are both Commercial products.
__________________
Macan S Diesel - Carrera White
Macan Turbo - White
1///M - Valencia Orange
Appreciate 0
      02-03-2013, 05:18 AM   #15
nasperated
Enlisted Member
nasperated's Avatar
Australia
8
Rep
44
Posts

Drives: 2011 e84 xDrive 23D
Join Date: Jan 2013
Location: Sydney

iTrader: (0)

Garage List
Hi mate, although it can be a little more complex, a novated lease can maximise your tax benefits. You'll need an employer that offers it though.
Appreciate 0
      02-03-2013, 02:06 PM   #16
pavo335
Banned
pavo335's Avatar
69
Rep
2,934
Posts

Drives: 3.5 wheeler
Join Date: Feb 2012
Location: sydney

iTrader: (0)

Quote:
Originally Posted by sparoz
Quote:
Originally Posted by Bruno28 View Post
Oh, ok, thats lucky!
i guess it helps a lot.
I think you get confused a bit here - CHP is also known is Commercial Hire Purchase (same thing as corporate hire purchase depends on who they are marketing to) - it has nothing to do with corporate. Basically it is an arrangement were the ownership stays with the financer until all the payments (plus the balloon) has been made and ownership will be transferred to you. Someone can correct me if I am wrong, but if the purchase price of the car is less than the LCT threshold, then they are treated as a lease - ie the who repayment amount is deductible.

For us who tends to buy cars over the LCT threshold, the point of CHP is a bit redundant as any lease arrangement over LCT is treated as a loan, and hence we tend to take out a chattel mortgage where it is just like a regular loan, but it is guaranteed by the chattel (which is the car). The advantage is that you take ownership of the car straight away - which specifically in the GFC handouts, that's the only way we can do it to claim the extra write-off.

Usually the requirement for CHP is a declaration that it is for majority business use and you don't have to be a corporate or a business to access the product. I believe there is some change or tightening of law that the lender needed to satisfied that the car is going to be for business use if you are buying in your own name. I think there were some issues with some consumers who was offered the products and ended up learning the hard way that they are no longer protected by the consumer law, as CHP and Chattel Mortgage are both Commercial products.
I think your over thinking it. The only significant difference is

Chp - GST up front deduction
Lease monthly GST deduction
Appreciate 0
      02-03-2013, 05:51 PM   #17
sparoz
Brigadier General
sparoz's Avatar
Australia
191
Rep
4,848
Posts

Drives: VO 1///M; Macan Turbo
Join Date: Jun 2008
Location: Sunshine Coast

iTrader: (0)

Quote:
Originally Posted by pavo335 View Post
I think your over thinking it. The only significant difference is

Chp - GST up front deduction
Lease monthly GST deduction
I am not qualify to advise on tax and I just do whatever my accountant says. Anyway, I was comparing chattel mortgage and CHP and not lease. However, thanks for letting us know the difference with CHP and lease.
__________________
Macan S Diesel - Carrera White
Macan Turbo - White
1///M - Valencia Orange
Appreciate 0
      02-03-2013, 06:14 PM   #18
travisaus
Private First Class
9
Rep
112
Posts

Drives: 135i
Join Date: Dec 2011
Location: Brisbane

iTrader: (0)

Pay upfront - don't have any finance on my cars.
Appreciate 0
      02-03-2013, 06:45 PM   #19
oystero
Lieutenant
Australia
17
Rep
444
Posts

Drives: AW 1M, E90 320d
Join Date: Jan 2012
Location: Melbourne

iTrader: (0)

Quote:
Originally Posted by pavo335 View Post
I think your over thinking it. The only significant difference is

Chp - GST up front deduction
Lease monthly GST deduction
+1

There is a nice table comparison on http://www.natloans.com.au/compariso...-products.html

The pages is slightly hard to read but the table is formatted correctly when you print it
Appreciate 0
      02-03-2013, 06:56 PM   #20
1q2w3e4r
Breakfast at Tiffany's
1q2w3e4r's Avatar
24
Rep
1,053
Posts

Drives: BMW
Join Date: Jan 2007
Location: Sydney

iTrader: (0)

One big payment.
Appreciate 0
      02-03-2013, 08:05 PM   #21
david.orr
Lieutenant Colonel
Australia
123
Rep
1,852
Posts

Drives: Cars
Join Date: Aug 2011
Location: Australia

iTrader: (0)

imo loans for appreciating assets only.
upfront for my cars.
Appreciate 0
      02-03-2013, 09:11 PM   #22
nasperated
Enlisted Member
nasperated's Avatar
Australia
8
Rep
44
Posts

Drives: 2011 e84 xDrive 23D
Join Date: Jan 2013
Location: Sydney

iTrader: (0)

Garage List
Quote:
Originally Posted by 1q2w3e4r View Post
One big payment.
Works if you're a Sultan or Sheik.
Appreciate 0
Post Reply

Bookmarks

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off



All times are GMT -5. The time now is 05:07 AM.




1addicts
Powered by vBulletin® Version 3.8.11
Copyright ©2000 - 2024, vBulletin Solutions Inc.
1Addicts.com, BIMMERPOST.com, E90Post.com, F30Post.com, M3Post.com, ZPost.com, 5Post.com, 6Post.com, 7Post.com, XBimmers.com logo and trademark are properties of BIMMERPOST