You have bad or poor credit if your borrowing record includes certain annotations such as a complaint from your phone company that you missed a phone payment, credit defaults or even bankruptcy. However, if you have changed your ways, we at Platinum Car Loans don’t believe you should constantly pay for your past mistakes.

It is true that bad credit car loans are charged at a slightly higher interest rate than normal rates because people who have bad credit are known to default on their loans more frequently than people with good credit. However, this at least allows you to get your new car without being left catching the bus because you have no other options.

The big advantage with a novated lease is that you get to save money by buying your vehicle with pre-tax dollars rather that post tax dollars. Let me illustrate.

Assume you earn $1,000 per week before tax and your tax rate is 30%. Therefore, you would now take home $700. Now assume you pay $200 per week for your car. That leaves you with $500 per week for your other expenses.

Now assume that you buy the same car through a novated leasing arrangement. You still earn $1,000 per week and your employer would deduct the $200 car payment leaving you with now $800 of taxable income. Apply the 30% tax means that you now pay $240 tax (as opposed to $300 above) leaving you with $560 for your other expenses. In other words, buying your car through a novated lease rather than a conventional loan is equivalent to giving yourself a pay rise, in this example of over 10%. Nice! For those of us who are visual, I’ve included a table below to explain it.

So as you can see, by simply reversing the order of when you pay tax vs when you deduct your car payments (which is all a novated lease does), you can end up with the equivalent of a pay rise. In this example, the pay rise was over 10% without having to work any harder. Now you know why I’m such a fan of novated leases.

Eligibility – 30% Investment Allowance:

1. Purchases of new and used, tangible depreciating assets used in carrying on a business.

2. Small businesses turning over $2 m per year or less – minimum cost price excl GST is $1,000.

3. Other businesses turning over $2 m per year or more – minimum cost price excl GST is $10,000.

4. Asset to be acquired between 13^th December 2008 and 30^th June 2009 and installed by 30^th June 2010.

5. Allowance is provided as an additional tax deduction. Clients claim 130% of the cost price with an outright 30% deduction claimable in the income year in which the asset is installed ready for use, and the remaining 100% over the effective life of the asset.Eligibility – 10% Investment Allowance:

1. Purchases of new and used, tangible depreciating assets used in carrying on a business.

2. Small businesses turning over $2 m per year or less – minimum cost price excl GST is $1,000.

3. Other businesses turning over $2 m per year or more – minimum cost price excl GST is $10,000.

4. Asset to be acquired between 1^st July 2009 and 31^st December 2009 and installed by 31^st December 2010.

5. Allowance is provided as an additional tax deduction. Clients claim 110% of the cost price with an outright 10% deduction claimable in the income year in which the asset is installed ready for use, and the remaining 100% over the effective life of the asset.

Hire Purchase and Chattel Mortgage Contracts

Clients claim the investment allowance as long as they are not prohibited from claiming capital allowances.

Finance Lease Contracts

Treasury are still to clarify whether financiers (lessors), will be able to transfer the investment allowance to clients (lessees) in the event of finance lease transactions as was the case with the old investment allowance scheme.

In the event that lessors are unable to transfer the investment allowance to lessees, it is anticipated the clients should received the benefit of funders being able to claim increased depreciation in the form of lower rates.

Further clarification is required.

Timeframes in relation to Legislation

Draft legislation should be available in mid to late January for consultation with industry.

Treasury anticipates legislation will be introduced into Parliament in February 2009.

Investment Allowance Details

Depending on the timing of their capital purchase, clients can claim either 130% or 110% of the asset cost over the life of the asset which is split up into a 30% or 10% outright deduction at the time the asset is installed ready for use and then 100% over the remaining effective life. This is available to the taxpayer who is entitled to capital allowance deductions under Division 40 of the Income Tax Assessment Act.

Clawbacks for Early Disposal

No clawback proposal has yet been put forward. Under the old investment allowance rules however, the client had to hold the asset for a minimum of 12 months.

Further clarification is required.

Timeframes in relation to Equipment Purchases

To be eligible to receive the 30% investment allowance, order and delivery should have occurred after the 13^th of December 2008 and before 30^th June 2009 with the asset installed and ready for use no later than 30^th June 2010.

In order to be eligible to receive the 10% investment allowance, order and delivery should have occurred after the 1^st July 2009 and before the 31^st December 2009 with the asset installed and ready for use no later than 31^st December 2010.

Equipment Use in Australia

No real clarity on assets that are located overseas but generate income in Australia.

Further clarification is required.

Minimum Cost Price and Small, Multiple Asset Purchases

Minimum cost price to be eligible for the investment allowance is $1,000 exclusive of GST for small businesses turning over $2 million per annum or less and $10,000 exclusive of GST for businesses turning over $2million per annum or more.

The $1,000 or $10,000 cost threshold is based on the definition of ‘cost’ for depreciation purposes.

The minimum cost threshold is based on a per asset basis. Eg if a client turning over more than $2m per annum purchases 10 computers for $3,000 each although the total cost is above $10,000, the threshold is applied to each computer therefore the purchase would be ineligible for the investment allowance.

Computer Software & Hardware

Computer Software is ineligible since it is considered an intangible asset. Computer Hardware is eligible for the investment allowance.

Luxury Cars

The investment allowance will be capped to the luxury car limit.

Sale and Leasebacks

Treasury advised that if a new piece of equipment is the subject of a sale and leaseback transaction, the investment allowance would be available. There is no definition of ‘new’ however.

AELA have requested clarification on this matter, particularly in relation to the scenario where an asset can be imported and then used for a short period of time for testing purposes before being subject to a sale and leaseback. They noted that under the previous investment allowance scheme, if the asset was acquired within 6 months from the time construction was completed and imported then the asset was considered effectively new.

Further clarification is required.

Private and Business Usage & Novated Leases

Treasury are still considering whether there will be apportionment of the investment allowance for business vs private usage.

Further clarification is required.

Record Keeping

Treasury suggested there would not be onerous record keeping requirements given the temporary nature of the proposed investment allowance.

Demonstrator Vehicles

Used equipment is now confirmed as being eligible for the investment allowances hence demonstrator vehicles are also eligible.

The decision, which comes as the Australian car industry faces its worst sales performance in 30 years, means private car buyers will no longer be able to seek finance from the company, Fairfax reported on Thursday.

Volvo, Land Rover, Jaguar and Mazda dealerships which use the retail finance will also be affected, while regional dealerships depend on the Ford Credit for retail finance.

Only 40 staff from Ford Credit’s wholesale finance department will keep their jobs, The Age newspaper said. Spokeswoman for Ford Motor Credit in Detroit Libbey Meredith said the decision was “difficult but necessary”.

One of Melbourne’s largest Ford dealerships owners said it would sell Mitsubishis and Toyotas by the end of 2009.

“I reckon about a third of Ford dealerships around the country are thinking the same thing,” the owner told The Age.

“The company is falling into disarray, and customers just don’t want the Ford product.”

Other Finance Options

Platinum Car Loans offers you all the right car financing options, these include Novated Lease or Novated Leasing, Commercial Hire Purchase, Chattel Mortgage, Car Lease, Finance Lease, Operating Lease, Bad Credit Car Loans and all Consumer Secured Car Loans.

Announcing the infrastructure package today Mr Rudd said the Government was committed to boosting the economy through nation building projects.

The bulk of the money is scheduled to be spent over the next 18 months.

The funds will be spread across a range of areas including:

• $1.2 billion for the Australian Rail Track Corporation, some of which will be spent on services for the Hunter Valley coal mines
• $711 million for roads spending and doubling funding of the Federal Black Spot Program
• $1.6 billion for education and research projects.

Mr Rudd says the spending will create 32,000 more jobs.

The Government will also provide $1.16 billion for a 10 per cent allowance to enable businesses to invest in capital over the next 12 months.

Earlier today the Government also announced small businesses would be able to defer 20 per cent of their Pay As You Go (PAYG) tax December instalment, due early next year.

Mr Rudd has also announced a new temporary tax deduction for businesses that invest in new capital equipment.

He says there will be an extra 10 per cent tax break available from now until the end of the financial year for businesses that buy new plant and equipment.

It is aimed at encouraging businesses to spend and is expected to cost the Government $1.5 billion.

Mr Rudd said it was essential to boost infrastructure and ease the impacts of the crisis on business.

“The Government has made this decision today because we believe that the challenge arising from the global financial crisis is very basic,” he said.

“When the private sector is under great challenge and great threat - and we were seeing a contraction in private sector activity - government must step in.”

Since the global financial crisis worsened in recent months, the Government has said it would increase infrastructure spending and bring projects forward in an effort to maintain economic growth and productivity.

In May the Government announced it would allocate $40 million for the Building Australia Fund, Education and Investment Fund and Health and Hospital Fund.

In November the Government gave $300 million to councils across the country to fund local projects on the condition they spent the money by September next year.

‘No budget deficit’

Treasurer Wayne Swan says the measures are aimed at boosting productivity and keeping the economy moving, despite the global slowdown.

But he will not say what the exact impact of the new spending will be and how close the budget will be to a deficit.

“It is the case that we don’t publish on a package by package basis, all of those figures,” he said.

“The previous government never did that and we don’t intend to be doing that either.

“We have a budget in surplus, it’s an affordable package and it’s one that is necessary and timely, given the international economic environment.”

Rail infrastructure

“The rail proposal is a significant, new investment and again is dispersed across the country,” Mr Rudd said.

“What we are looking at are a series of measures which give a reasonable spread geographically in infrastructure - which is necessary - but bringing forward all that can physically be brought forward to maximise activity now and in the financial year ahead.”

In addition to the funds for the ARTC, $580 million will be spent on the rail lines from the Hunter Valley coal mines to the Port of Newcastle.

Further projects to be funded also include:

• $55.8 million for Queensland border to Acacia Ridge track upgrade
• $45.1 million for Sydney to Brisbane line - new, extended and upgraded loops
• $29.7 million for Melbourne to Junee line - passing lanes
• $45 million for Seymour to Wodonga track upgrade
• $91.5 million for Cootamundra to Parkes track upgrade
• $105.7 million for Western Victoria track upgrade
• $50 million for Wodonga Bypass duplication
• $42 million for Cootamundra to Crystal Brook line - new and extended loops
• $76 million for Melbourne to Adelaide line - extended loops
• $23 million Adelaide to Kalgoorlie line - new and extended loops
• $45 million towards the $90 million Advanced Train Management System (ATMS) trial set to bring train management into the digital age

Roads infrastructure

Funds for the Black Spot program will be doubled to $110 million and $711 million in money brought forward will be spent on 14 road projects including:

• The NSW Hume Highway - Woomargama Bypass
• The NSW Hume Highway - Tarcutta Bypass
• NSW Pacific Highway - Bulahdelah Bypass
• NSW Pacific Highway - Sexton’s Hill, Banora Point
• QLD Ipswich Motorway - Dinmore to Goodna
• QLD Pacific Motorway - Springwood South to Daisy Hill
• QLD Bruce Highway - Douglas Arterial
• VIC Western Ring Road Upgrade
• VIC Goulburn Valley Highway - Nagambie Bypass
• VIC Western Highway - Anthony’s Cutting
• VIC Princes Highway - Traralgon to Sale
• WA Mandurah Entrance Road
• SA Northern Expressway
• TAS Midland Highway - Brighton Bypass

This massive infrastructure spend is hoped to create thousands of new jobs and as these jobs will be in outlying areas initially, demand for and hence the prices of cars and vehicles will go up, creating more jobs in the automative industry as well. As a consumer, if you are keen on getting a new vehicle now while prices are soft, then you might want to consider getting a novated lease to also help you save on tax. If so, please contact Platinum Car Loans as we are specialists in novated leasing

This is a short note to display my gratitude towards Nick for a great deal he worked out for me - through some seemingly impossible odds.

Nick not only secured the best deal for me (I did shop around), but he also conducted himself in an extremely friendly, energetic and professional manner at all times - efficiently and effectively working through all the issues with my application at remarkable speed. I was always kept informed of the progress of my application and never once was I in doubt as to its status. All this while working 800km+ apart (I’m based in Melbourne) - in a new office (I believe you have just relocated).

I am extremely grateful for Nick’s dedication, perseverance, efforts and service - and shall have no hesitation recommending Nick or Platinum Car Finance to my friends, family and/or colleagues.

I would also like to take this opportunity to mention that other staff (namely Cynthia) also displayed exemplary skills and professionalism.

Thank you all for a job extremely well done. I shall not forget this - when I’m driving my new car!

Best of regards,

Ruwan J

Other Finance Options

Platinum Car Loans offers you all the right car financing options, these include Novated Lease or Novated Leasing, Commercial Hire Purchase, Chattel Mortgage, Car Lease, Finance Lease, Operating Lease and all Consumer Secured Car Loans.

Thanks a bunch for the good news, have spoken to the dealership and will be able to pick it up today itself in time for the weekend. It should be noted that the whole process was quite seamlessly handled by yourself with constant feedback as to where we stood in the process.

Will definitely recommend Platinum Car Loans to others and looking forward to eventually doing business with yourself at a future date.

Thanks again

Regards Nishad

Other Finance Options

Platinum Car Loans offers you all the right car financing options, these include Novated Lease or Novated Leasing, Commercial Hire Purchase, Chattel Mortgage, Car Lease, Finance Lease, Operating Lease and all Consumer Secured Car Loans.

Our Car Finance Options

Platinum Car Loans offers you all the right car financing options, these include Novated Lease or Novated Leasing, Commercial Hire Purchase, Chattel Mortgage, Car Lease, Finance Lease, Novated Lease, Operating Lease and all Consumer Secured Car Loans.

Commercial Hire Purchase is a rental agreement, however it differs from a Finance Lease in that the goods automatically become yours once the terms of the agreement have been completed. The Financier maintains ownership of the vehicle or equipment until the final payment is made, however for tax purposes you can claim depreciation and the interest component of the monthly rental as a monthly business expense. GST is not payable on the monthly Commercial Hire Purchase repayments.

Also, as distinct from a Car Finance Lease, you have the option of including an upfront deposit or trade-in to reduce your monthly rental, while a balloon payment may also be set at the end of the term (similar to a Finance Lease residual payment).

Alternatively, you may choose to structure your rentals to clear the debt in full over the full term of your agreement.

Our Car Finance Options

Platinum Car Loans offers you all the right car financing options, these include Novated Lease or Novated Leasing, Commercial Hire Purchase, Chattel Mortgage, Car Lease, Finance Lease, Novated Lease, Operating Lease and all Consumer Secured Car Loans.

Thank you for assisting us with our application. it was great pleasure doing business with you. I and Abdul very satisfied with the service you have provided us in such a short time. We look forward again doing business with you in future.

All the best for CHRISTMAS AND A HAPPY NEW YEAR TO YOU AND ALL THE STAFF .

Abdul & Zureen

Our Car Finance Options

Platinum Car Loans offers you all the right car financing options, these include Novated Lease or Novated Leasing, Commercial Hire Purchase, Chattel Mortgage, Car Lease, Finance Lease, Novated Lease, Operating Lease and all Consumer Secured Car Loans.