Post your Skoda factory order delivery times here

[K1W1]

I tend to agree with that opinion. I think the key words would be

where the business commits to investing in the asset between 13 December 2008 and 31 December 2009

Surely you are committing to invest when you sign the purchase agreement at the dealership.

[K1W1]

First post edited. My vehicle is now at the dealership.

[Skoda Convert]

Here's an extract from the info i got

"Taxation Office views a number of different financing
arrangements, including implications for the Investment
Allowance: Financing Arrangement Vehicle Order Contract Finance Contract
required to be signed required to be signed
by 31/12/2009 by 31/12/2009
Cash  
Personal Loan  
Hire Purchase (HP)  
Arrangement*
Luxury Car Lease*  
Legal Chattel Mortgage^  
Equitable Chattel Mortgage^  

* The ATO is of the view that when using a HP or luxury car lease to finance a vehicle, the contract under which you begin to “hold” the asset is the HP or lease agreement, not the order contract. This is why, for these arrangements the finance contracts need to be in place before 31 December 2009.

^ The ATO distinguishes between two types of chattel mortgages. If it is a “legal chattel mortgage”, that is, where the mortgagee (financier) is the legal owner of the asset, the ATO has determined that the commitment time is when you enter into the chattel mortgage agreement.

Therefore if you enter into the contract to buy the asset prior to 31 December 2009 and take delivery and enter into a legal chattel mortgage after 31 December 2009, the claim will be rejected. On the other hand if you enter into an “equitable chattel mortgage” which operates by way of a charge over the asset and the customer is deemed the legal owner (not the financier),

the order contract with the dealership is the contract under which you hold the asset.

Note The ATO has advised that differing rules apply if you
purchase a vehicle and become its legal owner prior to
entering into the hire purchase arrangement or luxury car
lease. In that case, the investment commitment time is the
time at which you enter into the contract to purchase the
vehicle. This may be when the order contract is made to the
supplier. "

Extract from Fordham Advisory Services (web pdf file)

It's obviously not relevant for everyone but it was relevant to me, my accountant was spot on as i have confirme this with the ATO before proceeding.

Maybe check with the ATO but if your confident with your accountant to can go with what they have said, they know your business better than anyone else

[Skoda Convert]

Heres another one

"

” However this would generally require you to pay for the asset prior to entering into the hire purchase
arrangement (which would be by way of a ‘sale and hire purchase back’ arrangement.) The two
transactions may be undertaken on the same day which would limit the cash flow impact.

Chattel Mortgage

An alternative to a hire purchase arrangement is a chattel mortgage. The ATO has stated that “If the
chattel
mortgage operates only by way of a charge over the asset and you are the legal owner of the asset, the
order contract with the supplier is the contract under which you hold the asset”.

However, the ATO has also stated that “if you enter into a chattel mortgage where the mortgagee (the
lender) is the legal owner of the asset, the contract under which you hold the asset is the chattel
mortgage
agreement. Therefore, the investment commitment time is when you enter into the chattel mortgage,
not
when an order contract is made with the supplier.”

In most chattel mortgage arrangements the borrower will be the legal owner of the asset and therefore
the
relevant contract will be the order contract the borrower makes with the supplier. "

"ATO Views on Investment Commitment Time and hire purchase arrangements and
leases of luxury cars

In the Fact Sheet the ATO states that “Under the capital allowances rules, if you enter into a hire
purchase arrangement for a depreciating asset or a luxury car lease, the contract under which you hold
the asset is the hire purchase arrangement or lease. Therefore, for hire purchase arrangements and
luxury car leases, the investment commitment time is when you enter into the arrangement or lease,
not when an order contract is made with the supplier.” [Emphasis added].

This means that if you are not a small business entity and want to claim the 30% tax break, the
hire purchase arrangement or luxury car lease must be entered into on or before 30 June 2009.
Otherwise the tax break that will apply to you will be at the reduced rate of 10%.

If you are a small business entity, you have until 31 December 2009 to enter into the hire purchase
arrangement or luxury car lease to be eligible for the 50% tax break.

The ATO has also stated that “Different rules apply if you purchase a depreciating asset and become its
legal owner prior to entering into the hire purchase arrangement or luxury car lease. In that case, the
investment commitment time is the time at which you enter into the contract to purchase the asset. This
may be when the order contract is made with the supplier.

” However this would generally require you to pay for the asset prior to entering into the hire purchase
arrangement (which would be by way of a ‘sale and hire purchase back’ arrangement.) The two
transactions may be undertaken on the same day which would limit the cash flow impact.

(This was taken from a pdf web extract MGI business solutions worldwide)

Again it was relevant to me as i did a chattel mortgage but it may not be relevant to everyone, so Bacdoc your accountants maybe very good at what they do but that doesn't mean mine was wrong for my particular scenario and i guess these articles are my second opinion!!

[Graybags]

^Too many words^

[backdoc]

"

” However this would generally require you to pay for the asset prior to entering into the hire purchase
arrangement (which would be by way of a ‘sale and hire purchase back’ arrangement.) The two
transactions may be undertaken on the same day which would limit the cash flow impact.

Chattel Mortgage

An alternative to a hire purchase arrangement is a chattel mortgage. The ATO has stated that “If the
chattel
mortgage operates only by way of a charge over the asset and you are the legal owner of the asset, the
order contract with the supplier is the contract under which you hold the asset”.

However, the ATO has also stated that “if you enter into a chattel mortgage where the mortgagee (the
lender) is the legal owner of the asset, the contract under which you hold the asset is the chattel
mortgage
agreement. Therefore, the investment commitment time is when you enter into the chattel mortgage,
not
when an order contract is made with the supplier.”

In most chattel mortgage arrangements the borrower will be the legal owner of the asset and therefore
the
relevant contract will be the order contract the borrower makes with the supplier. "

"ATO Views on Investment Commitment Time and hire purchase arrangements and
leases of luxury cars

In the Fact Sheet the ATO states that “Under the capital allowances rules, if you enter into a hire
purchase arrangement for a depreciating asset or a luxury car lease, the contract under which you hold
the asset is the hire purchase arrangement or lease. Therefore, for hire purchase arrangements and
luxury car leases, the investment commitment time is when you enter into the arrangement or lease,
not when an order contract is made with the supplier.” [Emphasis added].

This means that if you are not a small business entity and want to claim the 30% tax break, the
hire purchase arrangement or luxury car lease must be entered into on or before 30 June 2009.
Otherwise the tax break that will apply to you will be at the reduced rate of 10%.

If you are a small business entity, you have until 31 December 2009 to enter into the hire purchase
arrangement or luxury car lease to be eligible for the 50% tax break.

The ATO has also stated that “Different rules apply if you purchase a depreciating asset and become its
legal owner prior to entering into the hire purchase arrangement or luxury car lease. In that case, the
investment commitment time is the time at which you enter into the contract to purchase the asset. This
may be when the order contract is made with the supplier.

” However this would generally require you to pay for the asset prior to entering into the hire purchase
arrangement (which would be by way of a ‘sale and hire purchase back’ arrangement.) The two
transactions may be undertaken on the same day which would limit the cash flow impact.

(This was taken from a pdf web extract MGI business solutions worldwide)

Again it was relevant to me as i did a chattel mortgage but it may not be relevant to everyone, so Bacdoc your accountants maybe very good at what they do but that doesn't mean mine was wrong for my particular scenario and i guess these articles are my second opinion!!

I too am using a Chattel Mortgage, but in the scenario listed above where we become the legal owner of the goods. Can't you change your finance arrangement to take advantage of this or was the finance already done before you realised?

Just out of interest, did you not check with your accountants prior to signing the documents? If you did then didn't they provide incorrect advice?

[Skoda Convert]

I too am using a Chattel Mortgage, but in the scenario listed above where we become the legal owner of the goods. Can't you change your finance arrangement to take advantage of this or was the finance already done before you realised?

Just out of interest, did you not check with your accountants prior to signing the documents? If you did then didn't they provide incorrect advice?

What you maybe referring to is an equitable chattel mortgage, we explored this but it wasn't suitable for my scenario and in the end I don't care, I needed a car now and I am happy with having a no grey area scenario.

[Graybags]

Wow this thread has gone off topic but anyway ordered rs wagen tsi on 21st September and no idea how long it will take. The vehicle tracking link on the other page doesn't give a clue either. Lucky we are in no hurry

[K1W1]

You are about 5 weeks after me so I reckon late Jan / early Feb is around the time you should be scheduling some drives in the country in the new car.

[backdoc]

Wow this thread has gone off topic but anyway ordered rs wagen tsi on 21st September and no idea how long it will take. The vehicle tracking link on the other page doesn't give a clue either. Lucky we are in no hurry

I ordered my 30th Sept 09 and had a production date of 27th Nov. It is now on a boat on its way to Sth Africa. I'm suprised you can't track yours as I'm sure if mine has been built yours would've been too.

[Graybags]

Did you put the last six digits from your vin in the cargo tracking box?

[backdoc]

Did you put the last six digits from your vin in the cargo tracking box?

Yep. Last 6 digits in one of those boxes - I think it was the cargo ID one.

[selurs]

Ordered August 18th, dealer told me it would be delivered mid-Decemberish (so 4 months). Was fine with that.

There was a bit of a stuff up involving Xenon’s...end result, my car is now sitting on the Fremantle docks awaiting delivery (went down to have a look for it today...saw the yellow B-pillar doors through about four other car windows, but given Škoda are about the only company that doesn’t black their B-pillars and no-one else would be crazy enough to buy yellow, I’m going to assume it’s mine ), so it will be a tad late, but not too bad.

The original car (i.e. doesn’t have Xenon’s) hit the showroom early December, so I wasn’t lied too, and I only have to wait a month longer, so I’m not complaining too much, especially as the dealer was very clear from the get-go that it was going to be at least 4 months from order to delivery.

Edit: Oh, and mine comes up on the tracking site using the last 6-digits of my VIN in the cargo-ID box...

[K1W1]

Ordered August 18th, dealer told me it would be delivered mid-Decemberish (so 4 months). Was fine with that.

There was a bit of a stuff up involving Xenon’s...end result, my car is now sitting on the Fremantle docks awaiting delivery

It was probably on the same boat as mine. I think it docked in Freemantle around 28 November then hit Melbourne on 5 December.

[Graybags]

Hi all, we have tracking now and all going well will arrive in Melb Feb 2. Add another 2 weeks and might have a valentines present