Looking At Getting Into An R35 - Advise?

[On Edge]

I'm surprised your missus is allowing to do what your thinking of doing.

I can see it now: For the 1st 12 months you will be over the moon, and then you will realise the repayments to the bank, the insurance, running costs etc, are eating up your hard earned money.

You persevere for another 6-12 months before coming to the realisation that you need to sell. Then another depressing period of time will pass when the reality of not being able to sell occurs. Have a look at how many R35s are on carsales, that only have 10-20K on them.

Its a big jump from a G6E Turbo to the R35 in cost. There are many other cars that are exciting to drive, that turns heads, and at significantly less cost,

How about a nicely modified R34 GTR for 60K? Or even another 370z with a TT kit for 70-80K? Or wait till you turn 30, when the 2011 GTR will be around 110K, and you will of had another 2 years of growth in your property and further savings in the bank.

This ^

[fungoolie]

^ +2

Hi Fungoolie,

Yes you are correct that their are alot of other factors you need to take into account but didnt want to go into too much detail, but its good to get a constructive discussion going

The calculation was if a car was held in a business at a statutory at 20%. This is then grossed up by the applicable FBT value and the multiplied by the FBT Tax Rate. In regards to the flat FBT rate of 20% announced in the budget that is a rate that is only progressively applied from 10 May 2011 and will come into full effect from 1 April 2014.

On the flip side you can choose to use the 'Operating Cost' method and do an employee contribution but I was just giving the OP a window of how many variables there are and do the calculations before committing

Cheers Blah Blah its just that I use a gross up rate of 2.0647 (assuming GST Input Credit entitlement) and on a $125K car at 20% stat rate with FBT at 46.5% I still only get $24K. And apologies for not mentioning the gradual phasing in of the new Statutory rates. I guess whats most important though is that the message gets through for the OP go see a professional to discuss his options so he can tailor something specific for his circumstances assuming he wants to still go down this CRAZY path.... Joking.... Nup serious....

Edited July 14, 2011 by fungoolie

[Hazey]

I appreciate all the responses and it has made me see things in a different way so thanks.

This is the updated situation..

I have decided to sell the G6E Tubo as i've got too much of my money in it for something thats not really doing it for me and only getting driven by my girlfriend with the baby. If i can get my asking price I will not lose much at all as I got it for a steal when I purchased. See CARSALES link

My girlfriend is being offered an events management role for more money than we expected. She can than lease say, a $20,000ish car (e.g 2nd hand holden cruze) and run around that with bubs. Due to the nature of the job can claim its business usage also.

Now stay with me.. .

For my weekend toy car... I thought about the 370 again but would not get the use out of it due to only 2 seats and having a family. To me the next closest thing(not interested in R32 or R35) is a 2nd hand BMW 135i If i got that I would always be wanting the new 1 Series M BUT...

If I hold off for 1 year I can contribute another $20-30K and with the $45k from the g6et a 100K+ car doesnt seem so far out of reach anymore.

$75,000 deposit against a CHP lease

Loan amount (inc. GST): $40,000.00

Term: 3 years

Residual (inc. GST): $15,000.00

Interest rate: 8.50 %

Monthly repayment: $889.14

While I'm driving the car of my dreams I can save $5000 per year for the balloon and between my partner and I can still be putting away $15,000 a year as savings.

What do you think? Problem is deciding on a brand new BMW 1 series M $110,000 which they are saying will be a collectable item and first batch is already sold out. Every review I've read cannot fault it. OR getting a 2010 R35 GTR

I'm in no way comparing the 1M to the GTR. The below quote and other things Ive read makes me think the 1 series M is better for resale and comfort yet still very enjoyable just without the presense of the GTR unfortunatly. What would suit me better? will just be the weekend toy spirited road trips with my girlfriend and every other weekend will be all 3 of us (2yr old bub) when ever we go out.

......

An R35 will depreciate at about $2k a month, think about that. .......

If you just want a flash road car, you sould get something else IMO. As a road car, the R35 is relatively uncomfortable, expensive and boring (unless you are willing to drive like a royal knob). However if you want to run the same lap times as the best exotics, for less than half their cost, and yet still DRIVE to the track, in that sense it's the perfect road car.

Edited July 15, 2011 by Hazey

[syfon]

Sorry but if you are thinking of selling property, an appreciating asset that also protects your money against inflation, in order to purchase a car, you sir, have rocks in your head.

I'm 22, and have just sold my BMW to purchase a house with my brother. I've given up a luxurious, powerful car, for a Suzuki Jimny. Sure it is only a couple years old, comfortable etc, but it's not BMW or GTR.

Get your priorities right first. Hold onto your investments. Think about your family and your children's future & growth as opposed to your own enjoyment. I'm not saying don't enjoy yourself at all, but selling property to spend in excess of $100K on a car is just a stupid, immature thing to do.

You have a partner and a young child. And other debts. Don't be an idiot.

Edit - sorry i wrote that prior to reading your last post. It does sound viable, however I'm sticking with my guns and saying don't sell property to buy a car. Ever.

Edited July 15, 2011 by syfon

[Hazey]

Yeah well as I mentioned I agree and wont be selling property.

[LSX-438]

Well, despite everything i said before, we all need goals and motivation, so i reckon target what you really want and go for it. Your plan about selling the car and saving up a bit doesn't sound too bad. I am sure you will be motivated to save this way, and you never know what may crop up in the meantime (new cars etc).

I appreciate all the responses and it has made me see things in a different way so thanks.

This is the updated situation..

I have decided to sell the G6E Tubo as i've got too much of my money in it for something thats not really doing it for me and only getting driven by my girlfriend with the baby. If i can get my asking price I will not lose much at all as I got it for a steal when I purchased. See CARSALES link

My girlfriend is being offered an events management role for more money than we expected. She can than lease say, a $20,000ish car (e.g 2nd hand holden cruze) and run around that with bubs. Due to the nature of the job can claim its business usage also.

Now stay with me.. .

For my weekend toy car... I thought about the 370 again but would not get the use out of it due to only 2 seats and having a family. To me the next closest thing(not interested in R32 or R35) is a 2nd hand BMW 135i If i got that I would always be wanting the new 1 Series M BUT...

If I hold off for 1 year I can contribute another $20-30K and with the $45k from the g6et a 100K+ car doesnt seem so far out of reach anymore.

$75,000 deposit against a CHP lease

Loan amount (inc. GST): $40,000.00

Term: 3 years

Residual (inc. GST): $15,000.00

Interest rate: 8.50 %

Monthly repayment: $889.14

While I'm driving the car of my dreams I can save $5000 per year for the balloon and between my partner and I can still be putting away $15,000 a year as savings.

What do you think? Problem is deciding on a brand new BMW 1 series M $110,000 which they are saying will be a collectable item and first batch is already sold out. Every review I've read cannot fault it. OR getting a 2010 R35 GTR

I'm in no way comparing the 1M to the GTR. The below quote and other things Ive read makes me think the 1 series M is better for resale and comfort yet still very enjoyable just without the presense of the GTR unfortunatly. What would suit me better? will just be the weekend toy spirited road trips with my girlfriend and every other weekend will be all 3 of us (2yr old bub) when ever we go out.

[Godcla]

All good advice.........goes without saying that you hold on-to property etc. BUT everyone wants to upgrade their lifestyle/Toys NOW.

PS: The trick is to Have both.......sorry to say that takes $$$$$$

Regards Captain Obvious

Edited September 20, 2011 by Godcla

[ricknismo]

35's are comin down...I'll buy one with ya

[vspecIInur]

I thought the same path at some point but what was I thinking!!

I think I would rather keep my nurspec and investment properties. The depreciation rate of those cars freak me out as opposed to the depreciation rate of my 10 yr old car.

[On Edge]

the nur is likely to hold its value better than any r35's yet, especially in millenium jade like you have, i say keep it

[domino_z]

. The depreciation rate of those cars freak me out as opposed to the depreciation rate of my 10 yr old car.

depreciation is not linear

[Tony de Wonderful]

The OP can do with his money as he wishes but seems like ATM he is doing the right thing by saving some and still having a few toys.

They key is moderation IMHO as has been said. Don't get in debt or extend yourself to buy a shiny bauble, but don't live like an ascetic either.

One other observation:

'Investment property'.

Property is never an investment always a speculation. The people who call it an 'investment' are the people wanting to sell down to the next 'greater fool'. Don't be that fool.

Edited December 24, 2011 by Tony de Wonderful

[Jaycoh]

Hey all, first time here. Sorry to jack the original posters thread with a question... just wondering what would be the cheapest PLACE to buy the R35? Obviously id be looking at a used 09' version. It feels like they go for around 110k or so over here in Oz? Ive been looking at options overseas(im a bit of a noob at knowing about importing details as such), but i was looking at the UK and they seem to have them going for around 60k at the cheapest with 10-20,000 miles on the clock. My question would be, are they able to be registered here? Cost wise to ship over im thinking like 20k? Are they cheaper in Japan? Maybe it would be easier to import from there? I was thinking of going over to England to have a look around in person, where as i know we have a few Japanese import places here that will locate for you. *I was also looking at an 06' Aston Martin V8 Vantage which is why i wouldnt mind heading over to the UK for a look, as they go for the same price used... also a lot cheaper than here. Maybe it would just be easier/cheaper to go and live in the UK for a while, buy one and drive it over there? I have the cash to pay outright, just not sure if i want to spend the amount of money they go for here. Its not like im rich or anything. Thanks for reading, any help/advise/info either good or bad would be greatly appreciated. Cheers

Edited February 6, 2012 by Jaycoh

[g35me]

Hey all, first time here. Sorry to jack the original posters thread with a question... just wondering what would be the cheapest PLACE to buy the R35? Obviously id be looking at a used 09' version. It feels like they go for around 110k or so over here in Oz? Ive been looking at options overseas(im a bit of a noob at knowing about importing details as such), but i was looking at the UK and they seem to have them going for around 60k at the cheapest with 10-20,000 miles on the clock. My question would be, are they able to be registered here? Cost wise to ship over im thinking like 20k? Are they cheaper in Japan? Maybe it would be easier to import from there? I was thinking of going over to England to have a look around in person, where as i know we have a few Japanese import places here that will locate for you. *I was also looking at an 06' Aston Martin V8 Vantage which is why i wouldnt mind heading over to the UK for a look, as they go for the same price used... also a lot cheaper than here. Maybe it would just be easier/cheaper to go and live in the UK for a while, buy one and drive it over there? I have the cash to pay outright, just not sure if i want to spend the amount of money they go for here. Its not like im rich or anything. Thanks for reading, any help/advise/info either good or bad would be greatly appreciated. Cheers

The short answer is NO and NO. This question has been copvered numerous times. Have a search.