Tuesday 10 August 2021

Extra car expenses (of course)

The S-type Jag was delivered yesterday, and it looks very stylish and is in pretty good condition. A little bit of wear and slight cracking in the driver's seat, but that is to be expected for leather seats that are almost 20 years old (especially in Australia). Some scuffing on the door handles, but no scratches or dings in the body paintwork, and as far as I can tell everything seems to be working OK. I drove DW to her part-time job at lunchtime and the car is great fun to drive. Upon delivery I was told that the $500 12-month 'extended warranty' I had purchased only covers the engine block, drive train and gearbox, and I could have purchased a 'comprehensive' extended warranty for $870 that also covers the electrical system, computers, brakes, aircon, cylinder heard etc. It was also cheaper (per year) to take out 3-year or 5-year warranty. In the end I opted for the $1,290 3-year comprehensive extended warranty, so if anything goes wrong (like the computer system that broke in the last S-type I bought three years ago) it *might* be covered by the warranty. Each item covered only provides $350 per claim, so if something expensive goes wrong it could still get expensive to repair. I decided to pay the $790 extra to get three years of 'comprehensive' warranty cover. I'll also have to pay $240 stamp duty when I go to the local car registry office (within 14 days) to record the transfer of ownership.

I got an online quote to get comprehensive car insurance from Budget Direct. With limited km cover (5,000 km pa), no drivers under 50, $750 excess (except for windscreen excess of $40), and private/business usage, the insurance quote was about $455 pa, which seems quite reasonable.

I checked through the vehicle's service log book and it really has only had one prior owner, who had done the proper annual services with an approved Jaguar service center for the first 6 years, and then done bi-annual services using a local mechanic in years 8 and 10. The car had only done about 10,000 km pa for the first 12 years (2002-2014) and the the driver (a country town solicitor) had retired in 2013 and had only driven a few thousand km over the next six years (and had spent some money getting a new battery and the electronic throttle replaced in 2014).  After a few more years he had then obviously decided he didn't need the Jag any longer and traded it in to the dealer I bought it from. Overall the car seems quite a good buy for about $8,000 (it cost around $120,000 when new). Hopefully this car will last me for the next ten years while I am still working full-time and running my financial planning business on the side.

As this car will be used for my home-based financial planning business as a sole trader I should be able to claim back the GST on the purchase price and also claim a per km amount for business use (or a percentage of actual expenses).

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