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993 Turbo prices pushing the envelope!!!!!!!!!!!!!!!!!!!!!!!!!!


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  • 2 weeks later...

Called in to Porsche Centre Brighton today to collect a new front splitter. A few of the Sales guys came out for a look and a chat. They mentioned that they recently sold a 993 Turbo in mint condition with 28kms on it for $205,000. Not sure colour or how recent but that's an astonishing price.

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Anyone know what the story is with the silver WA turbo?    Sold, now not sold.

Simon?  Anyone?

 

http://www.carsales.com.au/private/details/Porsche-911-1996/SSE-AD-2866092/?Cr=46&sdmvc=1

Don't think there is a story. Its a nice car.

Being a private sale, it might be the price thats holding it back, as the price doesn't include GST, so its the equivalent of $169,000 at a dealership.

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Don't think there is a story. Its a nice car.

Being a private sale, it might be the price thats holding it back, as the price doesn't include GST, so its the equivalent of $169,000 at a dealership.

Yes but if you claim the GST upfront you'll pay it at the other end when you sell it. OK for everyday cars but not so much if it's going to hold its value, or even go up.

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Not quite. At the risk of sounding like my Accountant, you can only claim the GST portion up to the Luxury Vehicle Limit amount which is $61,884, so $6,188.40 claimed from purchase, but you then have to pay the GST on the full sold price. So, if you sell that car for $150,000 in a few years, you pay one eleventh of that, $13,636. $7447.96 down the drain on GST, to say nothing of the tax payable on the capital gain versus the written down value.

If you are registered for GST, and you buy privately as in the case of the silver $154,000 car, no upfront claim is possible but you are liable for the full GST on sale. Loss of about $17,000, plus the capital gains tax.

Perhaps more importantly, if you are not a business registered for GST, you cant claim any of the purchase price GST. So, $154,000 paid to a private vendor is the same as $154,000 including GST from a dealer. That car is not worth $154,000, unless you're a private buyer and don't claim anything tax wise, in which case its ok to buy from the private seller. No capital gains tax implications either, but no tax deductions for interest or depreciation.

You would think there would be a better way than creating a system that is so confusing. In the end, keeping them out of the tax loop is best I think, but again Im no Accountant, and this is not advice, just the school of hard knocks.

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I think when buying a car it's good to refer to your own accountant because there are quite a few rules relating to GST.  I agree that it might often be best to keep it out of the tax loop and just buy it into a personal name and forget about GST and other deductions.

 

Having said that here are some interesting GST facts that may apply for some:

 

1. You may be entitled to a ‘decreasing adjustment’ (reduced GST payment) for the business use element if the vehicle was used for both business and private purposes, and for vehicles used for making financial supplies.

2. You may need to make an ‘increasing adjustment’ if you continue to hold a motor vehicle after your GST registration is cancelled.

3. If you use a motor vehicle partly in carrying on your business, you’re generally entitled to claim a partial GST credit based on how much you use the motor vehicle in carrying on your business.

4. GST is not payable on the disposal of privately owned assets. For example, a sole trader selling a motor vehicle which has not been used for business purposes and on which no GST credit has previously been claimed should not include GST in the sale price.

5. Without listing the conditions, in certain circumstances you can claim a GST credit for the full amount of GST included in the price of a car even if the car costs more than the car limit.

 

Another curious point made by an accountant I know is that if you buy a car privately and there is no GST in the transaction you can finance under a Hire Purchase agreement and create an input tax credit.  You will therefore create an ability to claim the GST on the purchase, the timing of which probably depends on your method of accounting.  This may be the only good reason to go with an HP since the government introduced GST on fees and interest in 2010.  Maybe this is worth looking into for buyers who want a GST claim on a private sale.  Personally I cannot verify it but this accountant is doing it and is very confident he is right.

 

Anyway, maybe this has gone far enough OT but as a finance broker I get a bit immersed in the detail.

 

Back to the discussion about 993 Turbo prices.  Love to own one day!  Not sure how I can convince my own Minister of Finance to extend the garage to fit it in, let alone hand over the $$  - whether it includes GST or not.

 

PS. What an awesome collection of cars you have Simon.

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