smit2100 Posted 5March, 2019 Report Share Posted 5March, 2019 So if this ever eventuates what's the view on years / model P cars that will see bit of a hockey stick accelarated depreciation downshift blip. https://www.whichcar.com.au/news/porsche-australia-warns-government-against-overnight-removal-of-luxury-car-tax I'll start with 991.1 gt3's with the engine hiccups will sit under 997 gt3s unless someone comes up with a 30k aud engine kit fix that is guaranteed to address the issue for 50k km. Also thinking pre 2010 911's likely to see a flat hockey stick and sub 50k macans for the price of new fully loaded Kia suv. Link to comment Share on other sites More sharing options...
ELSPORTO Posted 5March, 2019 Report Share Posted 5March, 2019 What the f%ck are they talking about?? Stepping it down over time so the loss is incrementally absorbed each time a 2nd hand car changes hands? What if it only changes hands once - bought before and sold after the phase out? And how is that fair to new car buyers? Who gets the extra money that is no longer a legitimate tax? Self serving BS cloaked in concern for their customers - Porsche simply trying to mitigate loses on their trade ins and 2nd hand car sales whilst bleeding their customers. Unless I'm missing something? Link to comment Share on other sites More sharing options...
edgy Posted 5March, 2019 Report Share Posted 5March, 2019 Interesting one... but if history is anything to go on, it'll be implemented in the most convoluted way. A retrospective scheme would be an accountants worse nightmare, and an immediate removal would pose all those ramifications listed in the article. However with the seemingly increasing socialists attitude amongst Australian's I'd imagine the general consensus is going to be "fuck em they can afford it". Link to comment Share on other sites More sharing options...
LeeM Posted 5March, 2019 Report Share Posted 5March, 2019 I'm not real smart, especially talking about things like this, yet would new car buyers (who don't have to pay LCT) really give a shit about anyone else having their car depreciate? Thought not Link to comment Share on other sites More sharing options...
tazzieman Posted 5March, 2019 Report Share Posted 5March, 2019 It's all Greek to me , but I do know new car buyers take a heavy hit each time. Luxury never comes cheap, in the consumables world. Link to comment Share on other sites More sharing options...
9elf Posted 5March, 2019 Report Share Posted 5March, 2019 Hurray! Get rid of the LCT. Link to comment Share on other sites More sharing options...
Coastr Posted 5March, 2019 Report Share Posted 5March, 2019 12 hours ago, LeeM said: I'm not real smart, especially talking about things like this, yet would new car buyers (who don't have to pay LCT) really give a shit about anyone else having their car depreciate? Thought not Yes because the majority of new car buyers are trading an old one. People behave in funny ways, even though they’ll be better off in the long run. I would expect the used market to crater and for new car sales to dry up until it comes in. Any stupid tax should just be yanked and let the chips fall where they may. They didn’t care about the impact when they brought it in. And it bit hard on Porsche and others at the time. Just drop it instantly and let the market react and adjust. greedy socialists are going to socialist - news at 11 Link to comment Share on other sites More sharing options...
Spectre Posted 5March, 2019 Report Share Posted 5March, 2019 Im probably in a very small minority here. Keep the LCT, i reckon its a good way to redistribute wealth. Link to comment Share on other sites More sharing options...
firstone Posted 5March, 2019 Report Share Posted 5March, 2019 Question. Is stamp duty calculated after Lct? I'm guessing yes, so stamp duty revenue will be reduced? The problem with removing one income stream is they have to find another one to replace it. I'm LCT exempt anyway. 😆 Link to comment Share on other sites More sharing options...
thumperson Posted 5March, 2019 Report Share Posted 5March, 2019 The biggest problem will be if you have financed the whole thing, the sudden drop in value compared to payout figures will be distressing. I wonder how the insurance gods will react once they clue in that the gap insurance they have out there just got more likely to be claimed against? A lot of finance deals and leases will be upside down if the bandaid just gets ripped off. No doubt there will be lots of unintended consequences Link to comment Share on other sites More sharing options...
JLD Posted 5March, 2019 Report Share Posted 5March, 2019 Short term pain, long term gain..... RIP THAT BANDAID OFF!!!! Link to comment Share on other sites More sharing options...
Raven Posted 5March, 2019 Report Share Posted 5March, 2019 Get rid on LC tax and every other bloody tax and tariff ,,we rightly get screwed .....Have they dropped the Tariff on imported cars that was in place to protect the domestic car manufacturers eg Ford and Holden .................Who dont produce cars here any longer Link to comment Share on other sites More sharing options...
OZ930 Posted 5March, 2019 Report Share Posted 5March, 2019 1 hour ago, thumperson said: The biggest problem will be if you have financed the whole thing, the sudden drop in value compared to payout figures will be distressing. I wonder how the insurance gods will react once they clue in that the gap insurance they have out there just got more likely to be claimed against? A lot of finance deals and leases will be upside down if the bandaid just gets ripped off. No doubt there will be lots of unintended consequences So, what happened when they just introduced the LCT ? Did all the "older" so called luxury cars suddenly increase in value ? Was anyone compensated ? Isn't this called a market adjustment ? Why is PCA complaining ? It's not as if they were getting the tax anyway. It doesn't make them look good in the eyes of the consumer... or do they have a lot invested in luxury car leases rather than sales and have the most to lose ? Maybe, there is a bit of "snobbery" in this issue as well. Wouldn't be the first time. Link to comment Share on other sites More sharing options...
thumperson Posted 6March, 2019 Report Share Posted 6March, 2019 2 hours ago, OZ930 said: So, what happened when they just introduced the LCT ? Did all the "older" so called luxury cars suddenly increase in value ? Was anyone compensated ? Isn't this called a market adjustment ? Why is PCA complaining ? It's not as if they were getting the tax anyway. It doesn't make them look good in the eyes of the consumer... or do they have a lot invested in luxury car leases rather than sales and have the most to lose ? Maybe, there is a bit of "snobbery" in this issue as well. Wouldn't be the first time. I don’t know. It was just a ponder. Maybe Porsche finance is leading the charge about not ripping it off too fast. I am with you on just getting it done and I buy new cars so I will be one of the ones taking it in the butt re current value. I don’t think it is snobbery and maybe they will option up new cars that come to Australia to maintain a price point. Link to comment Share on other sites More sharing options...
ANF Posted 6March, 2019 Report Share Posted 6March, 2019 If (or is it when?) the LCT is removed and the price of a new Porsche is still very high (compared to ALL other countries) who will Porsche et al blame for our over inflated prices.... Porsche wanting to step the removal over time as it "adjusts" it's prices so there is less sticker shock, so to speak..... Link to comment Share on other sites More sharing options...
Dave997S Posted 6March, 2019 Report Share Posted 6March, 2019 This is about resale protection and losses in the value of the financed fleet. Link to comment Share on other sites More sharing options...
JLD Posted 6March, 2019 Report Share Posted 6March, 2019 Porsche is trying to protect its golden goose. Profit on cars sold in Australia is higher than in other countries apparently, so they don’t want to kill the golden goose Link to comment Share on other sites More sharing options...
edgy Posted 6March, 2019 Report Share Posted 6March, 2019 15 hours ago, Dave986 said: This is about resale protection and losses in the value of the financed fleet. I'd imagine this is largely valid... it would potentially be a substantial write down to their asset balance, yet the liability will remain the same, that is a potential big shift in the debt/equity position for Porsche financial services. Link to comment Share on other sites More sharing options...
Coastr Posted 6March, 2019 Report Share Posted 6March, 2019 Stuff happens- take the write down - it won’t be material in the WW financials for VAG. Move to a lower tax environment and start selling more cars as a result. Again the govt didn’t give a Mack truck when they brought this crap in, so why dance around it. Talk about forgetting who the customer really is here. Porsche could easily eat some losses and keep its customer base by adding 10% bonus to tradeins for 6 months. They’d make it back from increased sales and actually show some customer service. Link to comment Share on other sites More sharing options...
edgy Posted 7March, 2019 Report Share Posted 7March, 2019 7 minutes ago, Coastr said: Stuff happens- take the write down - it won’t be material in the WW financials for VAG. Move to a lower tax environment and start selling more cars as a result. Again the govt didn’t give a Mack truck when they brought this crap in, so why dance around it. Talk about forgetting who the customer really is here. Porsche could easily eat some losses and keep its customer base by adding 10% bonus to tradeins for 6 months. They’d make it back from increased sales and actually show some customer service. Oh I hear you, my comments are purely are from an observatory perspective, I couldn't give 2 shits what they do to implement it, it doesn't affect me. And we know VAG are no stranger to being creative with numeracy.... #dieselgate Link to comment Share on other sites More sharing options...
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