[johnnydad]

Originally Posted by vladt

Thanks for all who responded.
Just picked up my car and went with Chattel Mortgage.
Here is the link on what it is.. for TMP
http://www.strattonfinance.com.au/ca...e/what-is.aspx

The main advantage as I understand it is that you are able to claim back the business use proportion of the GST (our VAT) up to the luxury car tax limit (about $58000) at the time of purchase, rather than just claiming back small amounts each month.

So it effectively reduces the initial purchase price by, for example $4640, say 10% (GST amount) of 80% (business use percentage for example) of $58000.

Downside seems to be that if you later sell it you have to repay the business proportion of GST (80% x 10%) on the sale price realised.