R36 Wagon- what did you pay?

[apom]

I would say that price is doable, i signed a contract for $65K for the same spec deal and that was with a slighted inflated trade-in on my 2004 CV8 Monaro.

In the end I couldnt get one without the extras so paid 3K for the sat nav, power tail gate and 45K scheduled servicing included

[R36]

This is ex GST and without Luxury car tax surely?

I got a driveaway price of $68000 with Sat Nav, MDI and Sunroof.

GST - $5724 which I get back at the next BAS anyway.

And LCT of $1737.72 which is kissed goodbye.

So ex GST of $62 300 is the effective cost to me.

+ GST on the lease residual which you don't get back?

[ur85q]

Best I could manage was $70k all in for a new wagon with sunroof + ipod + tint ... this was the best across three dealers, to the point of walking out of the dealership and leaving it for 10 days. It felt like they were pushed to the max ... that they would walk away from it over an additional cargo net.

I didn't have a corporate or institutional discount to draw on, but the invoice lists a $5850 discount to hit the $70k price point.

This was last week, so either times have changed, or I have much to learn from some of the jedi masters of negotiation in this forum. Methinks 'tis probably the latter! Either way, mine's on it's way, and all of this will be rather academic a discussion when I'm behind the wheel in some 7 weeks time.

[Luminary]

+ GST on the lease residual which you don't get back?

I'm not leasing.

I'm paying cash

[Luminary]

Best I could manage was $70k all in for a new wagon with sunroof + ipod + tint ... this was the best across three dealers, to the point of walking out of the dealership and leaving it for 10 days. It felt like they were pushed to the max ... that they would walk away from it over an additional cargo net.

I didn't have a corporate or institutional discount to draw on, but the invoice lists a $5850 discount to hit the $70k price point.

This was last week, so either times have changed, or I have much to learn from some of the jedi masters of negotiation in this forum. Methinks 'tis probably the latter! Either way, mine's on it's way, and all of this will be rather academic a discussion when I'm behind the wheel in some 7 weeks time.

It's a good price for the wagon esp. without the corporate discount, and the options you ordered.

[ron]

hey guys, does VW still have drive away special? or this ended in june?
cos while they had the promotion the wagons were 58400 driveaway no options. Im i right?, this is what i sort of remember. The sedans were 2000 cheaper.
cos apparently with tax and dealer deliv bull**** they would be around 65000?

[ron]

I'm not leasing.

I'm paying cash

oh yeah and they love the cash!!!!!


back to topic, we got ours when VW had the driveaway promotion.
we ended up paying 72K with the lot, i mean the lot, the dealer basically framed my wifes' picture on the wall as the hardest woman on earth!!!

does this mean in normal circumstances i would have had to pay something like 78K?????

[Markybhoy]

I've just noticed VW are having a 'spring sale'.

Free rego, ctp, stealer delivery and stamp duty on passat, eos and jetta.

This means you can have an R36 wagon for $67,600 driveaway.

Looks good!

[DJC]

The majority of dealers dont care if your leasing or paying cash as it makes abosolutely no difference on a new car!

There is far more benefit for them if a customer chooses leasing, as this commits the customer to replacing their car in usually 3,4,5 years time. A large majority of customers will choose the same brand, model and dealer.

The majority of customers choose a 3 y period.

The dealer also gets a kickback if you choose to lease with them.

So spend the cash on a good investment instead, and that generally not cars

[V6Passat]

The majority of dealers dont care if your leasing or paying cash as it makes abosolutely no difference on a new car!

There is far more benefit for them if a customer chooses leasing, as this commits the customer to replacing their car in usually 3,4,5 years time. A large majority of customers will choose the same brand, model and dealer.

The majority of customers choose a 3 y period.

The dealer also gets a kickback if you choose to lease with them.

So spend the cash on a good investment instead, and that generally not cars

Agree...like an appreciating asset (eg. land). At least with depreciating asset like a car the depreciation is tax deductable if you lease/CHP etc...Pay cash and you dont get this benefit. At the end of the day, each to their own based on their circumstances.

[DJC]

Exactly!

[Luminary]

Agree...like an appreciating asset (eg. land). At least with depreciating asset like a car the depreciation is tax deductable if you lease/CHP etc...Pay cash and you dont get this benefit. At the end of the day, each to their own based on their circumstances.

This is incorrect.

If you lease you cannot claim depreciation. That is something the lease company does on what effectively is owned by them. Your lease payments on the other hand are claimable in their entirety.

By paying cash, or taking out a chatel mortgage you become the owner and can claim the depreciation on the car as a deduction, and the interest component of your car payments if you take out credit.

The depreciation is not an insignificant deduction. Leasing cuts you off that.

Summary:

Lease: You claim all your lease payments under the LCT limit as deductions.

Chatel Mortgage: You claim interest payments under the LCT and depreciation of the car as deductions.

You have to do the sums for yourself. Also, insurance on a financed car is higher. It also feels better to actually be the owner of the vehicle rather than a 'renter'.

It's a religious battle in the end. I like to own, other's like to lease.

With my Accord Euro, I paid cash outright. $40k.

So what did I get?

No interest payments at all over the 4 years.

I claimed all the depreciation on the car + expenses leading to a deduction of about $9-10k per year. So $4k of money stayed in my pocket each year instead of in the ATO bank account. $16k in my pocket.

Car is now worth about $25k - so I lost $15k in the value of the car. I'm still better off as I didn't have to pay $16k in tax as a result.


If I'd mortgaged at 10% pa would have been interest of about $16k over 4 years. I'd still have paid the principal of the loan so $40k is gone also. And then the car is only worth $25k so a hit of $15k on real depreciation. Tax deductions on depreciation is the same as above. But nett result is that I've paid $16k in interest and got back about $8k due to tax deduction on the interest. So I'm about $8k down.

With lease the situation - $24 000 leased with $16000 residual. $610 monthly payments for 4 years = $29 280 in payments. Save $14k in tax. Car is worth $25k so you have $9k cash if you sold the car privately. You can't claim depriciation. So you've paid out $14k of lease payments after deductions and you have $9k cash at the end. Out of pocket by $5k.

Buy outright: Even

Mortgage: $8k down.

Lease: $5k down.

[V6Passat]

This is incorrect.

If you lease you cannot claim depreciation. That is something the lease company does on what effectively is owned by them. Your lease payments on the other hand are claimable in their entirety.

By paying cash, or taking out a chatel mortgage you become the owner and can claim the depreciation on the car as a deduction, and the interest component of your car payments if you take out credit.

The depreciation is not an insignificant deduction. Leasing cuts you off that.

Summary:

Lease: You claim all your lease payments under the LCT limit as deductions.

Chatel Mortgage: You claim interest payments under the LCT and depreciation of the car as deductions.

You have to do the sums for yourself. Also, insurance on a financed car is higher. It also feels better to actually be the owner of the vehicle rather than a 'renter'.

It's a religious battle in the end. I like to own, other's like to lease.

With my Accord Euro, I paid cash outright. $40k.

So what did I get?

No interest payments at all over the 4 years.

I claimed all the depreciation on the car + expenses leading to a deduction of about $9-10k per year. So $4k of money stayed in my pocket each year instead of in the ATO bank account. $16k in my pocket.

Car is now worth about $25k - so I lost $15k in the value of the car. I'm still better off as I didn't have to pay $16k in tax as a result.


If I'd mortgaged at 10% pa would have been interest of about $16k over 4 years. I'd still have paid the principal of the loan so $40k is gone also. And then the car is only worth $25k so a hit of $15k on real depreciation. Tax deductions on depreciation is the same as above. But nett result is that I've paid $16k in interest and got back about $8k due to tax deduction on the interest. So I'm about $8k down.

With lease the situation - $24 000 leased with $16000 residual. $610 monthly payments for 4 years = $29 280 in payments. Save $14k in tax. Car is worth $25k so you have $9k cash if you sold the car privately. You can't claim depriciation. So you've paid out $14k of lease payments after deductions and you have $9k cash at the end. Out of pocket by $5k.

Buy outright: Even

Mortgage: $8k down.

Lease: $5k down.

and this is why i have an accountant!! I CHP cause less paper work than a lease and personal choice

[V6Passat]

and this is why i have an accountant!! I CHP cause less paper work than a lease and personal choice

oh, in fear of kicking off a discussion on economics, we shouldnt forget about the principle of opportunity cost. Instead of buying a $60/$70k car outright, could i instead use this money to make money and/or reduce the costs of other financial commitments at a great rate than any benefit of buying the car outright? my prefereance as per example is real estate...land content goes up (house goes down).

[Luminary]

oh, in fear of kicking off a discussion on economics, we shouldnt forget about the principle of opportunity cost. Instead of buying a $60/$70k car outright, could i instead use this money to make money and/or reduce the costs of other financial commitments at a great rate than any benefit of buying the car outright? my prefereance as per example is real estate...land content goes up (house goes down).

Well really you have to consider all things.

If you have a mortgage then yes, it's hard to get 5% return on money these days; and being non tax deductible debt the money is best put into that rather than a car.