Help me choose a new tug?!!?

Hi Graham,

Thats what stuffed us with the pajy - anything over 2500kg reduces ball weight to 180kg. I can't seem to get my head around why mitsi would do that, they might aswell not advertise it as being able to tow 3 ton. I find it very misleading.

Cheers, Keith

I have a couple of questions about GST.

Can I ask what the advantage of GST is that you are referring to? I thought GST was not applicable on second hand cars.

On the other side of the coin if he pays GST and is leasing it then he claims it in his next BAS statement. In effect not paying it.

Sorry but I am not in business and just for curiosity sake would like to know.

Haven't worn a watch for 4 years. Guess what my present occupation is?

Guess what my present occupation is?

ok, i'll take a stab at it........ your a nomadic fisherman and beer sampler?

I am no accountant (an engineer actually) so take this info with a grain of salt:) Its been explained to me that when you purchase a new vehicle via novated lease, the GST is claimable by the employer (reduces lease cost) so in effect you do not pay GST on the new vehicle. However, when you sell your vehicle down the track, you now pay the GST on the residual thus saving say between 5-7% of the purchase price (depends on length of lease etc...).

But when you buy a second hand vehicle, while there is no GST payable on the puchase price, the original owner has already paid the GST so the value of the vehicle is inflated by that amount. When you novate this vehicle, you have to lease the entire amount (original GST inclusive) so in effect you pay 5-7% more for a second hand novated vehicle than you would for a new vehicle sans GST.

Hopefully this makes some amount of sense. Bottom line is you effectively save approx half of the GST on a new vehicle compared to a second hand one.

Cheers

Captain

Ouch. I am confused. For a new vehicle I see you paying the GST applicable to each lease payment. Then at the end of the lease if you keep the car you pay the GST on the amount you pay for the car. That makes sense. All GST payments can be claimed both as part of the lease payment and as tax on the residual month. I think thats what you said. The employer in this case would be the lessee.

In the second paragraph what do you mean by "value of the vehicle is inflated by that amount"? Lets use ours for example. See if I get it. Its a 100 series LC which we bought for $43K last Christmas. Original cost would have been about $80K I think.

Are you saying that we would end up leasing it at $43 (what we paid) plus $4.3K (GST on the $43K) plus $8K (GST on $80K) = $52K. Is that right?

Luckily we are not buying it. Our son is looking for a new car to replace the old 1986 Navara.

Nah Don't worry. Let the bean counters work it out. I get GST exempt anyway. This one will go to the grave with me.

Thanks for your time.

Hi Timbo,
We don't really want to go 2cnd hand - if we are going to do that we will keep our Patrol (4.2 td)
We have looked at the dual cab utes but with 3 teenagers they are a bit small in the back.
We are definetly not getting rid of the van - we only just picked it up last week!
Our plans didn't include a new tug, but now the wife wants 1. If the 70 series gxl is the only choice she is just going to have to deal with it.
The only complaints she has is they're ugly (her opinion - not mine), no 3rd row seating and basic interior.
I just thought there maybe something on the market out there I hadn't thought of but thanks for your help any way mate.

Cheers, Keith

The Nissan Pathfinders can be bought new, but I doubt they'd pull a heavy van as well as the 4.2TD Patrol you've already got.

Sounds like Mrs Keith might have to decide between the ol' reliable Patrol or a 70-Series wagon!

Yes, I've got the same problem with my wife - she thinks the 70-Series looks too much like a truck (and she's says it like that's a bad thing! LOL) :-)

Have had my 76 Series GXL for a year now,great tow vehicle, great fuel consumption and great to drive. Don't worry what they look like, unless you want to win a beauty contest, they do the job you want them for and the look grows on you after a while. As an owner I can highly recommend them but you might have to wait a bit if you order a new one.