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Second hand BA XR8

3K views 23 replies 16 participants last post by  TopGhia 
#1 ·
In a used car lot in Fyshwick (Canberra) this morning.

Phantom XR8 ute.

Sorry, I didn't get to stop and have a look so I don't know any more details. I'll see if i can't have a gander tomorrow. I must admit I was a little surprised though.
 
#3 ·
My local dealer has two XR6Ts second hand and also a 2003 HSV GTO with 1000kms on it that apparantly was traded for a BA Xr8!
 
#11 ·
I checked out the BA XR8 Phantom ute at Fyshwick. $44950 - rip off! I paid $43000 for mine including sports bar, floor mats and scuff plates. although it is a good indication for resale or perhaps current supply/demand issues (Ford dealer told me yesterday that I would wait till September to get an XR8 Blueprint ute if I ordered now - lucky I picked mine off the showroom floor, delivered within 3 days). I'd partly blame the high price tag of the used Ute on GST - The dealer will have to remit $4950 to the tax office once he (she) sells it...
 
#12 ·
Luke said:
I'd partly blame the high price tag of the used Ute on GST - The dealer will have to remit $4950 to the tax office once he (she) sells it...
Bzzzttt!!! What a crock of....

The dealer pays the GST on the services he provides. In this case let's say he bought the car wholesale for $35000. He sells it for $45000. He then has to pay GST on the 'service' which is of course the trade of the vehicle so in this case it's $1000.

Of course they'll tell you how hard life is and how they have to pay 10% and blah blah AP's heart bleeds and all that :evilfinge
 
#13 ·
We are talking 'second hand' vehicle under warranty being sold by a commercial going concern. What I am telling is that the listed price of $44950 is GST inclusive, therefore the GST charged on the sale price is remitted to the tax office. A lot of angry 'used car' sales dealers were up in arms over the introduction of the GST, claiming that it would put some of them out of business. $4495 goes to the tax office. Go to www.ato.gov.au if you choose to disagree...
 
#14 ·
You are still neglecting the GST Input Credit they can claim.
 
#15 ·
I agree with AP on this one, they can claim back the $3500 that they originally paid when they purchased the vehicle. So basically $3500 goes into GST receivable, and then once he sells, $4500 goes into GST payable, which at the end of the month are put into a GST clearing account, so the balance would be $1000
 
#16 ·
I'm not neglecting the GST input tax credit: Under the New Tax System (Goods and Services Tax) Act 2000 any going concern registered for GST can claim input tax credits and set these off against GST collected and payable to the ATO on thier Business Activity Statement. That includes input tax credits on any expenditure incurred as a result of running the buisness - bills, inputs purchased, etc. Any GST credit to be claimed on the costs incidental to the trade in or purchase of a second hand vehicle by a dealer is then offset against GST collected and payable to the ATO. My earlier message was clear: GST is charged on selling the second hand vehicle, hence an possible explanation for a proportionally higher asking price in the second hand car market
 
#17 ·
Ok I agree GST is charged, but once it comes down to it, after one is offset against the other, the GST only be around $1000 payable to ATO, not 10% of the whole vehicle cost.
 
#18 ·
The dealer (purchaser) can only claim a GST input tax credit on the purchase of the vehicle if the seller has an ABN and is registered for GST. If it is a private seller (hence not registered for GST), then the purchaser cannot claim GST.
 
#19 ·
Ok your right :)
Perhaps i should have looked at my accounting text book a little more closely, I was assuming that they paid GST when they bought the vehicle. Accept apoligies?
 
#20 ·
No problems man - no need for appologies - the last thing I want on a forum is a bun fight over such trivial things. Besides, this is a great medium to exchange ideas with fellow blue oval devotees. Cheers.
 
#22 ·
Hey guys.... WRONG... the dealer can claim the GST credit even if the seller is private and even if the car was bought new before GST e.g. 1998 etc.
ATO ruling (I just checked this with 2 accountants who do car yard stuff)
The GST is only payable on the profit otherwise...
new price $110,000 inc...... 10k gst
buy 77k sell 88k 8k gst
buy 66k sell 77k 7k gst (so far 25k on originally 100k)

actual plot
new price $110,000 inc...... 10k gst
buy 77k sell 88k 1k gst (8-7)
buy 66k sell 77k 1k gst (7-6) total 10k on origin + 2k or 10% of profit made
 
#23 ·
And how can a dealer calculate the GST input tax credit where there the private seller does not provide an Invioce, ABN and isnt registered for GST. This is a fundamental requirement under the GST legislation. I'd be interested to find out the ruling number.
Also, you mention that the cost is $110 000, $10 000 GST. Wrong, if the GST inclusive cost is $110 000, then GST is $11000 (1/11 of the consideration as per the GST legislation). It is illegal to quote GST exclusive prices.
GST has NO relationship to profit. It is only related to the consideration (ie. exchange price between seller and buyer).
 
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