Sorry but there’s no one-size-fits-all answer so it’s crucial you get a highly experienced accountant to run your numbers, before you sign on the dotted line. A good accountant will take care of all the tricky calculations, to maximise your tax deductions, and they’ll stop you getting it wrong while you’re high on the thrill of finding the perfect car.
We’ve seen really smart people rush in and buy ridiculously expensive cars in their company and, even though they love getting that initial whopping big GST refund, things tend to turn sour when they’re stung with a $10,000 bill for Fringe Benefit Tax (especially if they only ever use the car to toddle back and forth down Remuera Road to work each day).
However, as a general rule of thumb and a very rough one at that, it’s often a good idea to buy your car in (more…)
