FPV Ownership - How to buy one?

[Cuey]

Guys,

As an aspiring FPV owner, I was wondering what is the method most people use to buy these bloody expensive cars?

If you could let me know, on how you purchased your car, that would be awesome

Thanks!

[GT0132]

Originally Posted by Cuey

Guys,

As an aspiring FPV owner, I was wondering what is the method most people use to buy these bloody expensive cars?

If you could let me know, on how you purchased your car, that would be awesome

Thanks!

Cash....Just buy an XT from the auctions, stick an FPV body kit on her, XR8 bonnet, add a few stripes, lower it and presto you have an FPV for less than a quarter of the price...Ok it won't have the zing to match the bling but, hey hey who cares, it looks the goods.

Serously guys I was joking and no disrepect to FPV owners but there's a used car mob in QLD doing exactly that and flogging these off as FPV's and they need to be sued.

As to your question if you earn over around $100k and do more than 25k klms a year your best bet is get into a novated lease through your employer via a salary packaging arrangement. PM me if you want the operational specifics as I do these arrangements for my firm for employees doing exactly that.

Cheers

[Full Noise]

Cold hard cash, then the dealer asked me nicely if I would get a bank cheque instead. When I bought one of my XR8’s, I walked into the dealer with the cash in a brown paper bag for a laugh.

[toby123]

Originally Posted by Full Noise

Cold hard cash, then the dealer asked me nicely if I would get a bank cheque instead. When I bought one of my XR8’s, I walked into the dealer with the cash in a brown paper bag for a laugh.

Did you get the bank cheque? Or did you just say "whats the best ya can do for cash?" haha..

[Full Noise]

Much the same thing, just told them cash though. My GT-P had been sitting on the floor for a while so it was a win, win situation. They wanted to sell it and I wanted to buy it. I got the leather trim for nothing and a substantial discount off RRP. They just don’t sell big numbers of these things so there’s always room to move.

[MITCHAY]

I'd always buy in cash if you can afford it. Better than paying interest on a loan I reckon.

[GT0132]

Originally Posted by MITCHAY

I'd always buy in cash if you can afford it. Better than paying interest on a loan I reckon.

Not many have $70,000 in cash at their disposal though

[MITCHAY]

Originally Posted by ozmale42

Not many have $70,000 in cash at their disposal though

Depends how good you are at saving up though. The only time I want to give the bank the pleasure is when I buy a house.

Granted I don't have that much money now as I already bought a car but if I wanted one bad enough I'd save up the money. I would have spent the better part of $100k already and I'm 20 :

[Buddy 1]

Originally Posted by MITCHAY

Depends how good you are at saving up though. The only time I want to give the bank the pleasure is when I buy a house.

Granted I don't have that much money now as I already bought a car but if I wanted one bad enough I'd save up the money. I would have spent the better part of $100k already and I'm 20 :

You must live at Home, pay no Board & get way too much in wages for a 20 Yo :

[Yaw]

Originally Posted by MITCHAY

Depends how good you are at saving up though. The only time I want to give the bank the pleasure is when I buy a house.

Granted I don't have that much money now as I already bought a car but if I wanted one bad enough I'd save up the money. I would have spent the better part of $100k already and I'm 20 :

I understand exactly what you are saying when you have spent over $100k already. but if you had to actually have saved that money for a single lump sum of $100k is not that easy, besides by the time most people save that kind of money the car they want is well and truly out of date.

Just to illistrate my point a few facts and figures. (BTW Mitchay I mean no disrespect to you at all, i hold you in high regard)
I think it would be fair to say the average person would get a wage of around $40k-$70k per year. From that they have living expenses be that rent or mortgage, food, medical kids etc. it is hard for an average person to actually so when you take thise things out you may be left with $10-$25K disposable income, so to save $100k you would have to be very discipled and would take between 4-10 years to do so.

[tolzero]

Originally Posted by MITCHAY

Depends how good you are at saving up though. The only time I want to give the bank the pleasure is when I buy a house.

Granted I don't have that much money now as I already bought a car but if I wanted one bad enough I'd save up the money. I would have spent the better part of $100k already and I'm 20 :

of course you would save the money approx 70,000 large, is that a P Plate on the front of your X taxi, what big bikkies you pullin in, workin for daddy or selling bikkies on the side $35-$40 at ago

[GT0132]

Originally Posted by MITCHAY

Depends how good you are at saving up though. The only time I want to give the bank the pleasure is when I buy a house.

Granted I don't have that much money now as I already bought a car but if I wanted one bad enough I'd save up the money. I would have spent the better part of $100k already and I'm 20 :

That's great at 20 mate. At 20 I was driving a $3,000 shitbox and renting an apartment....I agree you not only have to be a good saver but an exceptional one. ....Now I'm not what you'd call a bad saver by any stretch but even on my salary of around $170k it would still take me around 3-4 years to save $70,000 with all lifes other expenses to consider and I'm 44.

Even if I could save $70,000 I'd be loathe to spend it all on a car. Thats a nice sum for a deposit on a weekender on the beach

[I FluXx I]

even if your good at saving, to save $70,000 would take bloody ages. Im purchasing a fpv in the next couple of weeks and am getting a personal loan. But Im planning on paying the loan off alot quicker.

[SP.UTE1]

I screwed the dealer so hard on a non trade price, and told him it would be fully financed. He cut his margin on the car, thinking the dealership would get the finance kick-back money. Then on the day of delivery I walked in with a bank cheque. They were not very happy about it, but stuff em. :
Regards SP-UTE1

[f6 typhoon]

i got a loan for mine

[schmidty]

If people can pay a loan off over 4 years why not just save the same amount for 4 years, buy with cashola, then keep saving the money you'd be paying off a loan and you'll be able to keep doing the same thing?

It's just a cycle you get in, it's like people putting something on a credit card, then being so loaded up making payments on the card trying to pay it off that whn they wanna buy something again they've got no savings cause it's all gone into card payments and then have to put stuff on the card again. Have good savings and but stuff when you can afford it and you'll never have to worry about payments.

For business sometimes a lease is a better option as far as being a tax write off.

[JBomb3000]

[QUOTE=schmidty]If people can pay a loan off over 4 years why not just save the same amount for 4 years, buy with cashola, then keep saving the money you'd be paying off a loan and you'll be able to keep doing the same thing?QUOTE]Because some poeple would consider 4 years a long time to walk.

[schmidty]

Originally Posted by JBomb3000

Because some poeple would consider 4 years a long time to walk.

You cant tell me someone who is looking at buying a new FPV is going to be buying they first car or not driving something half reasonable already? Don't see many people trading in their datto 120Y on a new GTP.

[Scott]

Originally Posted by schmidty

If people can pay a loan off over 4 years why not just save the same amount for 4 years, buy with cashola, then keep saving the money you'd be paying off a loan and you'll be able to keep doing the same thing?

Most of the loans used for cars carry a residual though so we'd need to factor that into the equation when we say that people can pay off the loan in X time. Typically, the residual on a new FPV after 4 years will be ~$30k that still needs to be paid for.

If you saved for 6 years at $1200/m you'd have about $84k to spend on a new FPV. I know they're cheaper than that now but I've allowed for a price increase or three. Price probably wouldn't change quite that much but it would get close. For the point of the exercise, saving might only need to be for 5.75 years.

If you got a personal loan over 6 years for $70k (buy price today), you'd spend ~ the same monthly amount as you were saving but would have also been driving an FPV for 6 years instead of the cheapy you had to use whilst you were saving, you'd be equally as debt free and you would have a fully owned FPV in the driveway to trade in on your next new car.

If you did it with a lease, you'd pay the same monthly amount for 4 years, have a residual of ~$30k that you could either sell the car ( and keep the change) or finance the balance and continue on at the same monthly amount for another 2.5 years. At the end, you'd be debt free, have driven an FPV for 6.5 years instead of the cheapy, have taken 6 months longer but still have an asset to sell/use as you please.

edit - To add to the above, if you've got the $$ sitting in the bank and can afford to make a hole that big in the account, paying upfront is the easiest way forward. Don't forget that the $ sitting in a bank or other investment is making you money too. Ideally, that money is making you more than the interest you would be paying on a loan. If it is, why cost yourself the extra money by paying a lump sum?

[nods]

and how much is the insurance alone for a 20yr old
driving a GTP





Cheer Nod

[Full Noise]

Originally Posted by nods

And how much is the insurance alone for a 20yr old driving a GT-P?

That’s if they can get it at all.

[QIK006]

Originally Posted by nods

and how much is the insurance alone for a 20yr old
driving a GTP
Cheer Nod

Nope, My girl is 23, and she had to be added as a driver, not a part owner, otherwise they would not have insured us, seeing as she is 23, our premiums jumped up around $450 as well.

[GTPete]

I went this way, business use mainly,I wouldnt have bought an FPV otherwise.

Heres the details on a chattel mortgage.

A Chattel Mortgage is a particular type of finance used by businesses for the purpose of purchasing a new or used vehicle or other business equipment.

Chattel Mortgage is essentially a Mortgage over goods to be financed. Chattel Mortgage is classed as a cash sale in that the goods automatically become yours on purchase and the finance company takes a mortgage over the chattels. However for tax purposes you can claim depreciation, running costs and interest paid, against your business income. The Chattel Mortgage allows businesses to claim the full input tax credit from GST incurred expenses immediately (next BAS statement). Always seek advice from your accountant in regard to this.

The Chattel mortgage is a very flexible finance option, in that, you have the ability to either finance the full purchase price or alternatively, you can include an upfront deposit or trade-in to reduce your rental commitment, while a Residual payment may also be placed at the end of the term (much like a lease residual) to represent the vehicles end value. Alternatively, you may choose to structure your rentals to clear the debt in full over the term of your agreement (fully amortised).

Chattel Mortgage - Benefits

Interest charged and depreciation of the vehicle are tax deductible
No capital outlay is required and cashflow protected
Terms can be flexible and fixed repayments make for easy future budgeting
After full payment of the chattel mortgage agreement, ownership of the goods is transferred to you.
You have the option to make payments with or without a ballon payment at the end of the term.

[irlewy86]

Originally Posted by nods

and how much is the insurance alone for a 20yr old
driving a GTP



Cheer Nod

An arm and a leg.

[Stefan]

Not sure, why you want to pay $70K cash? It is not financially smart at all...I'd say 90% of luxury cars are not bought "cash" no matter how much money they have sitting in the bank as they are a tool to reduce tax by way of a lease arrangement.

If you saved $70K from working and paing tax you essentialy had to earned $100K plus to save that $70K, dropping it in a car would be one of the dumbest thing you could possibly do.

It seems that alot of you need better accountants.

[Full Noise]

Originally Posted by Stefan

Not sure, why you want to pay $70K cash? It is not financially smart at all...I'd say 90% of luxury cars are not bought "cash" no matter how much money they have sitting in the bank as they are a tool to reduce tax by way of a lease arrangement.

If you saved $70K from working and paing tax you essentialy had to earned $100K plus to save that $70K, dropping it in a car would be one of the dumbest thing you could possibly do.

It seems that alot of you need better accountants.

That’s a big call. You seen to have a pretty good idea about every one else’s business. There are many people that pay cash for these things for their own personal reasons. Calling them dumb actually shows a lack of intelligence form you.

Everyone has reasons for what they do, they might suit some, but not others.

[Stefan]

Originally Posted by Full Noise

That’s a big call. You seen to have a pretty good idea about every one else’s business. There are many people that pay cash for these things for their own personal reasons. Calling them dumb actually shows a lack of intelligence form you.

Everyone has reasons for what they do, they might suit some, but not others.

Not a big call just the truth.

I guess that is the difference between a good accountant and a great accountant and the reason the rich pay less tax than the poor...

Good luck paying cash!

[schmidty]

Originally Posted by GTP006

Most of the loans used for cars carry a residual though so we'd need to factor that into the equation when we say that people can pay off the loan in X time. Typically, the residual on a new FPV after 4 years will be ~$30k that still needs to be paid for.

If you saved for 6 years at $1200/m you'd have about $84k to spend on a new FPV. I know they're cheaper than that now but I've allowed for a price increase or three. Price probably wouldn't change quite that much but it would get close. For the point of the exercise, saving might only need to be for 5.75 years.

If you got a personal loan over 6 years for $70k (buy price today), you'd spend ~ the same monthly amount as you were saving but would have also been driving an FPV for 6 years instead of the cheapy you had to use whilst you were saving, you'd be equally as debt free and you would have a fully owned FPV in the driveway to trade in on your next new car.

If you did it with a lease, you'd pay the same monthly amount for 4 years, have a residual of ~$30k that you could either sell the car ( and keep the change) or finance the balance and continue on at the same monthly amount for another 2.5 years. At the end, you'd be debt free, have driven an FPV for 6.5 years instead of the cheapy, have taken 6 months longer but still have an asset to sell/use as you please.

edit - To add to the above, if you've got the $$ sitting in the bank and can afford to make a hole that big in the account, paying upfront is the easiest way forward. Don't forget that the $ sitting in a bank or other investment is making you money too. Ideally, that money is making you more than the interest you would be paying on a loan. If it is, why cost yourself the extra money by paying a lump sum?

Just did a quick personal loan calculation.

CBA's personal loan interest rate is 13.45%. i'm sure you could do better, but just for interest sake lets say you get your FPV for 70k on the road.
Over 6 years you're looking at a monthly payment of $1421.87. Over the 6 year loan term you'll have paid $32,374.45 in interest.

So in 6 years you'll have shelled out $102,374.45 for your FPV that'd be worth maybe 20k.

So next time you're still borrowing another 50k, over 6 years, is $1015.72 per month, and another $23,124.61 in interest.

Sure you could be driving one today, but you're sure as hell paying for the privellage.

loans with residuals are a crock. Many people that do it that way so they make their payments more affordable are living in a dream world. Might as well just lease if you're gonna do it that way. I;ve seen people get a loan over 5 years, with a residual and then get another loan at the end to pay the residual. 10 years to pay off a new patrol!

So for someone to borrow the full amount, over 6 years per car on a personal loan could buy 3 cars for the same money as the person who's paid for it can buy 4.

[Scott]

Originally Posted by schmidty

Just did a quick personal loan calculation.

CBA's personal loan interest rate is 13.45%. i'm sure you could do better, but just for interest sake lets say you get your FPV for 70k on the road.
Over 6 years you're looking at a monthly payment of $1421.87. Over the 6 year loan term you'll have paid $32,374.45 in interest.

So in 6 years you'll have shelled out $102,374.45 for your FPV that'd be worth maybe 20k.

So next time you're still borrowing another 50k, over 6 years, is $1015.72 per month, and another $23,124.61 in interest.

Sure you could be driving one today, but you're sure as hell paying for the privellage.

loans with residuals are a crock. Many people that do it that way so they make their payments more affordable are living in a dream world. Might as well just lease if you're gonna do it that way. I;ve seen people get a loan over 5 years, with a residual and then get another loan at the end to pay the residual. 10 years to pay off a new patrol!

So for someone to borrow the full amount, over 6 years per car on a personal loan could buy 3 cars for the same money as the person who's paid for it can buy 4.

ANZ are quoting 7.5-8.5% for their Supp Loans. That means that you can get $70k paid off in 6 years at $1238 per month. Which, is within $50 a week to the amount you'd have to save to buy outright when prices have snuck up. In reality, the loan option would cost something like $50 a week more for the duration of the loan or saving period. For me, $50 a week is not overly significant. I don't know but imagine that $50 a week for most people buying FPV's is not the end of the world.

If I said to you that for $50 a week, you could be driving a brand new F6 in place of the car you would be driving (assuming ot's not already an FPV lol) whilst saving $1200 month, would you want to? I would. If you're saving the money for the car at $1200 a month anyway, then it's true that for $50 a week, you can have one now.

Residual's aren't a crock - a 4 year old FPV is still worth 50% of it's new price while the residual will be something like 30-40%. If you trade in, you'd come out +/- even.

If you've got money invested returning you 10%, it doesn't make sense to pull it out of that to save 8% interest.

Agreed you're paying for the privilege of driving an FPV today but for me, and many, many more like me, it's worth it.

[I FluXx I]

Im only 18, turning 19 in november. And im a couple of weeks away from buying a FPV F6. Im buying a second hand BF, most likely around the 45k mark.

No, I dont work for daddy. Dont get my money given to me. Didn't win lotto. But I am a tradie who lives in Perth. And that means I get big $$$. Especially for my age.

I should point out that I do work for my bro. But I dont get any special treatment or get payed anymore than what the couple of other guys working for him do. Im currently driving a XR6T and pay around $1000 per year for insurance. I have the policie listed as my mum driving 50% of the time and me driving 50% of the time. So it dosnt cost an absolute fortune.

Im getting my loan over 5 years. But paying more every fortnight on the loan to save on interest. You would be surprised how much interest you can save by just paying an extra $100-$200 per month.