Do you have to pay extra if car is registered under bussiness

[goblin5566]

Hi Guys.

Need urgent and desperate help.
I was about to close a deal on honda civic for 25,000 drive away.

The salesmen through me off a bit when I indicated that I might get it under Bussiness registered. He was asking for extra $500 on cost price + $350 for business registered gov expenses like CTP, etc.
He said he could do it for 25,500 drive away under business registered.
So, what I was wondering if anybody know whether you have to pay extra if the car is under business registry and if yes is it around $500 more?

Also, we are speaking to accountant to work out whether it need to be under business registry. Basically we can claim all expenses at ato eventhough the car is private registery as you declare percentage of business and private use.
However, we basically need to claim the 50% tax deduction from the govt current scheme. However, we are not sure whether it has to be registered under business or not.

Help would be really appreciated.

[tmy]

What state are you in?

I'm not sure what the extra $500 is for. But being from a dealership, his going to do what he can to get as much as he can. Best for someone else to answer that.

Yes the car needs to be bought in the Business name to recieve the 50% tax break. Note its only the 50% tax break if you are a Small Business Entity. (Turnover less then 2mill., Lower percentages for larger entities.)

Also note that you will get $12,500 off your business tax bill, provided that the tax bill is in excess of $12,500. So if your bill is only $10,000 - you can't claim the whole 50% of the purchase. (meaning you can't create a tax refund.)

Register it under the business name and registration is a tax deduction. Along with other motor vehicle expenses that you incurr. E.g. mechanical work.

[goblin5566]

thanks for that. I am based in NSW.
I don't know where do the extra costs come.
I checked rta website and I get following quotes including (Registration Fee, Motor Vehical Tax, Original Yellow- Trans Fee, Stamp Duty)

Business: 1153
Private: 1035
where the difference is in the Motor Vehical Tax. Registration fee, Stamp Duty, etc are identical.

Yeah. $500 more if the car registered under business is ridiculous.
I don't think it should be worth that much.

I hope this is someone is the forum who know what the exact difference should be.
I don't mind paying more as long as I know that I am not paying more than I should

[goblin5566]

for anyones interest I found out from a 'good' deal that you shouldn't pay any extra at all if the car needs to be registered as a business on the dealer side. All you have to pay more it $250 which are on the government fees and charges. So, don't let any dealer scam you by asking significantly more.

[RTD.53X]

Additional fees apply for cars used primarily for business purposes.

vehicle registration fees in NSW (difference between business and private use)

Tare Weight ~ Private Use ~ Business Use

up to 975kg = $226 - $332

976kg to 1154 kg = $248 - $366

1155kg to 1504kg = $278 - $418

1505kg to 2504kg = $396 - $602

[goblin5566]

thanks a lot for the info. Appreciate it. Hopefully it will help others as well.
We need more transparency in the car buying business.