Topic: Want To Buy An Aston Martin? Take Out A 144 Month Loan!

[Autos_Editor]

Car loan terms are now getting incredibly long

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[tpl]

I would think that if you are a "businessman" that if you can't find a way for the business to buy your Aston in such a way that the CRA won't see any taxable benefit you need a new accountant.

[Snowman]

I would think that if you are a "businessman" that if you can't find a way for the business to buy your Aston in such a way that the CRA won't see any taxable benefit you need a new accountant.

Exactly. There is an acceptable range based on revenue but a company car is a company car.

[Hannibalsmith]

Using a simple example, the monthly payment on $200,000 at 4% over 144 months comes out to ~$1,750.

The last time I checked the maximum monthly payment allowable by CRA for capital cost allowance was ~$800 / month or $30,000 purchase price. I'm sure its more complicated than that.

[KGcobalt]

144mo finance term...coming soon to a Hyundai dealer near you...(WITH a balloon payment at the end... )

[Snowman]

Its all here.

http://www.pwc.com/ca/en/tax/publications/pwc-tax-guide-car-expenses-benefits-2014-02-10.pdf

[Hannibalsmith]

Its all here.

http://www.pwc.com/ca/en/tax/publications/pwc-tax-guide-car-expenses-benefits-2014-02-10.pdf

Thanks. New van will be expensed...

[Fobroader]

I thought the only way to buy an Aston Martin was to walk into a showroom with a Safeway bag full of cash.....making payments on a supercar kind of takes away its cool factor.

[Snowman]

I thought the only way to buy an Aston Martin was to walk into a showroom with a Safeway bag full of cash.....making payments on a supercar kind of takes away its cool factor.

You would be shocked how many cars over $100k are leased or financed. I know guys dishing out +$1500/month on a lease. Lots of people make big money but spend it before having a chance so save it.

[Fobroader]

I thought the only way to buy an Aston Martin was to walk into a showroom with a Safeway bag full of cash.....making payments on a supercar kind of takes away its cool factor.

You would be shocked how many cars over $100k are leased or financed. I know guys dishing out +$1500/month on a lease. Lots of people make big money but spend it before having a chance so save it.

$1500 a month to rent a car  Thats ridiculous....but I guess keeping out with the Jonesses isnt cheap.

[Canadiain]

Using a simple example, the monthly payment on $200,000 at 4% over 144 months comes out to ~$1,750.

The last time I checked the maximum monthly payment allowable by CRA for capital cost allowance was ~$800 / month or $30,000 purchase price. I'm sure its more complicated than that.

If you run a business that intends to rent out your supercar by the day for say $500 a day, then it almost makes sense to do it that way.... 

[Hannibalsmith]

Using a simple example, the monthly payment on $200,000 at 4% over 144 months comes out to ~$1,750.

The last time I checked the maximum monthly payment allowable by CRA for capital cost allowance was ~$800 / month or $30,000 purchase price. I'm sure its more complicated than that.

If you run a business that intends to rent out your supercar by the day for say $500 a day, then it almost makes sense to do it that way.... 

I would think in that instance the entire cost of the acquisition would be depreciated, like a factory buying equipment. But then again, I'm no tax / accounting guy...

[PJ]

When I bought my travel trailer they really pushed their 20 year financing.   At least at the end of the payments the Aston will still be worth a lot of money.

I blame a complete lack of basic math skills.

[johngenx]

Back when I worked in banking, we had a policy that we didn't loan out more than $75K on a car loan, regardless of the cost of the car.  We had a doctor that made big money, but was cash poor thanks to his $50K/month lifestyle.  He wanted a new SEL600 Mercedes.  I told him that we'd loan him $75K, he had to come up with the approx $130K additional funds.

We hasn't happy.  He approached MB-Credit and they leased him the vehicle for $3350/month.

When I was in consulting, one of my partners had matching his/her Navigators leased at $1K/month each, plus his mortgage payment was $2520 BIWEEKLY.  His monthly bills before buying any gas or groceries or clothes, etc, was about $10K/month.

I could wear out my keyboard with instances of people with monthly obligations of over $10K and even over $50K.  We had quite a few clients at the bank that had car lease payments of $2K or more.

[johngenx]

At least at the end of the payments the Aston will still be worth a lot of money.

 

[PJ]

At least at the end of the payments the Aston will still be worth a lot of money.

 

Why laugh? Ever seen a cheap used Aston Martin, no matter what the year?

[mmret]

Back when I worked in banking, we had a policy that we didn't loan out more than $75K on a car loan, regardless of the cost of the car.  We had a doctor that made big money, but was cash poor thanks to his $50K/month lifestyle.  He wanted a new SEL600 Mercedes.  I told him that we'd loan him $75K, he had to come up with the approx $130K additional funds.

We hasn't happy.  He approached MB-Credit and they leased him the vehicle for $3350/month.

When I was in consulting, one of my partners had matching his/her Navigators leased at $1K/month each, plus his mortgage payment was $2520 BIWEEKLY.  His monthly bills before buying any gas or groceries or clothes, etc, was about $10K/month.

I could wear out my keyboard with instances of people with monthly obligations of over $10K and even over $50K.  We had quite a few clients at the bank that had car lease payments of $2K or more.

Gotta keep the consumption economy afloat

[phazotron]

This 12 year long term has me thinking about how the more mass market oriented car companies are going to this.  I think that 10 year terms are probably not that far off.  Does anyone have any breakdown of purchase terms of sales?  I wonder how it all shakes out. i.e. cash purchase, 1yr, 2yrs, 3yrs, etc...

[Erik]

At least at the end of the payments the Aston will still be worth a lot of money.

 

Why laugh? Ever seen a cheap used Aston Martin, no matter what the year?

Yup. The depreciation is brutal on them.

[johngenx]

The depreciation is brutal on them.

Sure, $50-60K for a used car seems like a lot of money, but when you started at $150K, or more, that's a LOT of dough gone.