Your's or the Bank's

[vicarious]

Actually, leasing since the cascading FBT removal/changes is no longer as good. A personal loan and a logbook method can work out much better. This way you bypass FBT and claim the business percentage of interest on a loan plus running costs.

& get a nice depreciation & maintenance bonus at tax time

[Full Spectrum]

Yep it is the smart way of doing things these days. Much like people who dismiss GE as a good service. I prefer to spend a banks money without any drop in interest on our cash in accounts. Interest free/low rate balance transfers, there is so many better ways to buy cars nowadays than simply paying cash.

As an example, in the last 6 years we have used GE without paying anything to them. Wait for minimum 3 years interest free and purchase. Best of all, since the GFC even using GE can get you good discounts on items. Keep money going into your bank earning interest, while you use theirs without ever paying a cent.

What about their account keeping fees.

Your spot on with GE. People who place hate on them dont understand the free interest period at all. these people use the card as if it were a atm card. big mistake get charged 27% interest and moan about it.



Yes own my own car not a cent paid to a bank for it.

[elmaso]

i'd feel ashamed if i didn't own my car out right, i mean, if i needed a loan for $1000 that would be sad... haha

[H4Z4RD]

Have had finance with other cars, but I'm cash all the way now.

[nathanVY]

Paid for both my cars in cash.

[Darren_L]

I own my Commodore, my ute and my motorbike.
only thing I owe money on is my house

[HamaTime™]

I own my Commodore, my ute and my motorbike.
only thing I owe money on is my house

Not many people can pay for a house in cash though.

My parents told me a story about some bloke in QLD who bought an $800,000 house in cash a few years back. Rocked up to the bank and said he wanted $800k in physical cash notes.

Haha, just to be a prick I would get the money in $2 coins and tell the owner to count it

Would be funny!

[nathanVY]

Not many people can pay for a house in cash though.

My parents told me a story about some bloke in QLD who bought an $800,000 house in cash a few years back. Rocked up to the bank and said he wanted $800k in physical cash notes.

Haha, just to be a prick I would get the money in $2 coins and tell the owner to count it

Would be funny!

Surely a cheque would be useful here. LOL

[IS250FSSV]

Surely a cheque would be useful here. LOL

Lol. Of course a cheque would be handy he, but you dont wana be a party pooper, do you?

[LittleMissVE]

Try saving.

What do you think I meant by saying we now are in a position to pay cash? We own my clubsport outright. My husbands cruiser was 120k.. How ####ing rich do you think we are? Was pushing it with the clubby, let alone the cruiser.

We couldn't afford before, because we'd just bought a house, were saving for our wedding, and job wise we weren't earning the money we do now. ####ing hell.

[bloomers]

Paid cash for my current cars. I don't like loans because of the total cost of ownership. The first couple of cars were bought on loans but I now have a reasonable job and can afford to save for a car.

[Reaper]

Absolutely!!! Or a company lease for the tax benefits and rolling new cars every 2 years or so. But never a LOAN! I can't understand why ANYONE would get a loan for an asset that only depreciates the longer you have it. Makes absolutely NO sense.

There are lots of reasons why people will finance a car. I would do it if I had to buy one myself. It's a matter of money management. I could spend the cash on a car and receive a negative return or invest the money and expect a return of 9-12% (sometimes significantly more) with an effective cost of around 7% (interest payments on the car). Therefore I'm far better off financing the car rather than paying cash. Further to that, I rarely (if ever) make an investment etc just for the tax benefits. My rule of thumb is that the investment *must* be viable on it's own and if it does, I will arrange it to be most tax effective.

IMO many people say "I'll just write it off on tax" think it magically makes that item free and honestly - it's not!

Reaper

[Rufys]

IMO many people say "I'll just write it off on tax" think it magically makes that item free and honestly - it's not!

LMAO!!! That ALWAYS makes me laugh too...

[one_and_only2004]

LMAO!!! That ALWAYS makes me laugh too...

It makes me laugh when people constantly dismiss the idea of a car loan as nothing but stupid.

[f1tzy]

It makes me laugh when people constantly dismiss the idea of a car loan as nothing but stupid.

Your not wrong it helps my tax bill

[Drawnnite]

the only reason i would get a car loan (and pay it off in min amount of time) would be for good credit rating.
another way to get that i was told was to be a credit/debit card

if i ran my own business and could claim all expenses i would probably do the car loan thing. however it would require me to be carrying tools/workgear.
i already spoke to the tax people about this. and she did say they were cracking down on tradies who can lock tools up onsite (just a warning)

as for that guy who paid for a house in cash. good on him if he could do it. also the $2 coin thing would be a good laugh.

also to add. i refuse to go over my limits to buy something. if i do not have enough to buy it then i wonder, do i need it? or is it just want?
and i will only take a loan out for a house. the next car i buy i will make sure i have enough to buy it and get stuff done before going after it so i know i should always "be ahead"

[minux]

the only reason i would get a car loan (and pay it off in min amount of time) would be for good credit rating.
another way to get that i was told was to be a credit/debit card

Whoever told you that is not aware of much.

Australia has one credit rating. Bad. That is it. Either you have bad credit or you have nothing. Australia does not use a point scoring system.

[VS 5.0]

Whoever told you that is not aware of much.

Australia has one credit rating. Bad. That is it. Either you have bad credit or you have nothing. Australia does not use a point scoring system.

^^correct. All that shows up on a credit report in Australia in terms of credit rating is how many enquiries have been made by financiers or businesses, the value of the enquiry and any defaults or judgements that have actually been lodged with CRAA.

A good credit rating may come from having all of your finances (savings accounts, credit cards & loans) with one provider over an extended period of time and conducting those facilities well, i.e. being a good customer.