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| image; relaxaspell.blogspot.com |
LCT is payable by businesses which purchase or import luxury cars, unless the business' Australian Business Number (ABN) number is quoted in the correct format to the supplier or Customs.
LCT is charged in addition to the Goods and Services Tax (GST), but it is not payable on the full price of the vehicle. LCT is only payable at the rate of 33% (up from 25% as of 1 July 2008, though no senate approval for this increase was obtained) of the value of the GST-exclusive value which exceeds the LCT threshold. The LCT threshold is currently $60,316.00 AUD (for the 2013-14 financial year). An increased threshold of $75,375.00 AUD applies to fuel efficient cars that have a combined fuel consumption rating not exceeding 7 litres per 100 kilometres (based on a combined test cycle rating under ADR81).
LCT is reported on an organisation's Business Activity Statement at labels 1E and 1F. An organisation is not required to complete the LCT section of their BAS when they have elected the GST Instalment Option as LCT is included in this amount. Organisations which report and pay GST annually are only required to report LCT on their annual GST return (GSTR)
Businesses are only permitted to quote their ABN when the vehicle is used for the following purposes:
- Exporting the vehicle in circumstances where the export is GST-free
- Conducting research or development for the vehicle's manufacturer
- Holding the vehicle as trading stock (not including for rent or leasing purposes)
The LCT becomes due and payable when you on-sell the luxury car or stop using it for a quotable purpose. This might happen if you hold a car as trading stock and start using it for private purposes or if it becomes a capital asset of your business.[1]Luxury cars tend to offer a higher degree of comfort than their mainstream counterparts, common amenities include genuine leather upholstery and polished "woodgrain-look" dashboards.[42] Compared to mainstream vehicles, luxury cars have traditionally emphasized comfort and safety.[86] Luxury vehicles are also a status symbol for conspicuous consumption.[87]
Contemporary luxury cars also offer higher performance and better handling, which is often known as sport luxury.[88][89] However in Europe, where large-displacement engines are often heavily taxed and many luxury buyers shy away from conspicuous consumption, brands offer buyers the option of removing exterior engine-identifying badges.[50]
Forbes noted that the reputation of luxury marques enables them to continually introduce many new safety technologies and comfort amenities, such as anti-lock brakes, electronic stability control and DVD entertainment systems, before they trickle down to mass market cars. Numerous "smart car" features are largely only found on luxury cars as of 2009.[87]
The rear-wheel drive with longitudinal engines (FR) is a common layout of luxury cars. European marques like Mercedes-Benz, BMW, and Jaguar have almost never adopted front-wheel drive and retained a lineup mostly or entirely made up of FR cars. Japanese brands such as Lexus and Infiniti also have predominantly FR lineups. The FR layout, while more expensive than the FF, has been retained by these luxury manufacturers as it allows for higher performance engines (particularly the straight-6, V8, and other engine configurations with more cylinders), better handling, and a smoother ride. [50][90][91][92]
American manufacturers also largely followed the FR for their luxury brands (as well as their mass-market cars of the time). However, due to the Arab Oil Embargo of 1973 and the 1979 fuel crises, began eliminating their FR platforms in favor of the more economical front wheel drive transverse engine layout (FF). Chrysler went 100% FF by 1990 and GM's Cadillac and Buick brands for the US were entirely FF by 1997. One of the few notable holdouts was Ford's Lincoln Town Car and Lincoln LS.[93]
In the 21st century, as part of the revamp of its design and image,[94] Cadillac returned most of its lineup (sedans, roadsters, crossovers and SUVs) to rear- or all-wheel-drive, the only exceptions being the front-wheel drive Cadillac BLS (which is not sold in North America)[95] and the Cadillac DTS. Chrysler returned its full-size cars to this layout with the Chrysler 300.[96][97] Ford's Lincoln retained the longtime FR platform for the Town Car, intended for use as a limousine and chauffeured car.[98] However, newer offerings such as the MKZ and MKS use newer FF platforms shared with mainstream Ford vehicles, with all-wheel drive as an option.[99]
Source; wikipedia.org
Tips on buying a car
As a result of improved vehicle technology and materials, used car buying has become increasingly popular in the past several years. This is especially the case in the used luxury car market. Luxury cars hold their value in terms of performance and styling even more today than they ever have in the past. Here we'll take a look at some things to consider when buying a luxury car.
Value:
Some people have the perception that buying a used car just means buying someone else's troubles. While this might be true in some cases, it's certainly not the norm of the 40 million used cars purchased every year. The majority of used luxury cars available are lease returns and those who simply enjoy buying a new luxury car every few years.
While used luxury cars retain their value much more than standard vehicles, a several-year-old used luxury vehicle can sell for 30% - 60% less than it did new. Buyers of new cars pay a steep premium just to enjoy first ownership but the moment the car is driven off the lot and becomes a "used car," the value decreases. In two years, the owner of that same vehicle will in essence be driving a used car but still making the payments of a new vehicle.
Buying a used luxury car also allows you to get more options for less money. For the same price as a new stripped down model, you can buy a used luxury vehicle with accessories like built in TV's, surround sound stereo, or a GPS system.
Less Risk:
When a new vehicle enters the market, it hasn't undergone real consumer road testing. Oftentimes, it isn't until many people are using the car daily that an assembly line mechanical problem surfaces or drivers realize an irritation like that the trunk space not adequate for an average family's needs. By researching used luxury vehicles online you can uncover a wealth of performance reviews and real-world commentary from everyday drivers.
In addition to performance reviews, crash statistics for a used luxury vehicle are better understood than that of a new vehicle. Before a new vehicle is released, it has normally only undergone a series of controlled crash tests. It isn't until 1-3 years after a vehicle is released that there is enough information available to discern how a vehicle will perform in a real world crash.
To minimize the risks of buying a used luxury vehicle, obtain a Car Fax report. Car Fax runs a query on the title of the vehicle, compiling any information about reported accidents, thefts, vandalisms, etc. Most dealerships will offer a Car Fax report at no charge.
Warranty:
Because cars have improved so much in recent years, used car warranties can rival that of a new car warranty depending on the warranty company. Used luxury car warranties can cover up to 3 years and 45,000 miles. Depending on the year of the used luxury vehicle purchased, this can extend longer than the original warranty.
Be sure to check the standard warranty of the car dealership selling the car. Some offer a warranty of just a few days, most give a 30 day standard warranty, but some offer a 90 day standard warranty. Consider the length of the standard warranty a testament to the amount of belief the seller has in the quality of the cars being sold on its lot. Those that have a rigorous selection process often have a longer and more inclusive standard warranty.
Buying a used luxury vehicle is a wise choice for many car owners. There are many people who only choose to purchase used luxury cars because it's such a smart decision overall. With the advanced search capabilities of today's internet, finding a used luxury car that matches your lifestyle and personality can be fast and enjoyable.
Source; http://www.streetdirectory.com
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