AnswerID: 163959 Submitted: Thursday, Mar 30, 2006 at 20:19
Member - TonyG (Qld)
I have done this a few times for friends using my ABN.
It is a very simple process, and very legal.
The sales staff at the dealership only want the ABN to allow them to apply the fleet discount, no other reason. There is no tax fraud, or anything else.
By purchasing the vehicle with the assistance of an ABN, you get the fleet discount, but you can not claim the GST as a tax deduction, like a business can.
When purchasing the vehicle, quote your relatives ABN as requested, but state the following to the salesman, and he will have no concerns:
- The vehicle will be purchased in a private name, not company name.
- The vehicle will be financed in a name outside the company name.
- The vehicle will be registered in a private name, not company name.
As long as you tell them this information upfront, and they process the paperwork accordingly, everything is fine.
You should save between $5k to $9k depending on the purchase price, I have found you get a saving of approx 10% of retail price.
Hope all goes well
Reply 7 of 14