Soarer Central: Archive through March 01, 2006

Soarer Central Off-Topic Advice to young soarer owners Archive through March 01, 2006

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Toan Nguyen
Tinkerer
VIC
TT

Posts: 72
Reg: 07-2005

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Monday, February 27, 2006 - 03:08 pm, by: Toan Nguyen (Soarer_gt)

On the upside... If I was to go sideways into 2 tree's... there's no other car I'd rather be in than a soarer...

Yes... I've done that before... panel damage on front 1/4 and rear 1/4 and it threw out the alignment...

$500 to fix at mates rates. =)

Dave Bain
Tinkerer
Victoria
UZZ31 - V8 GT Limited

Posts: 33
Reg: 07-2005

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Monday, February 27, 2006 - 05:05 pm, by: Dave Bain (Resident)

Just on the note of paying off your HECS upfront, I believe it is actually cheaper to pay it off only when you need to as opposed to upfront. I recall this is due to the fact that when you pay upfront, the money comes from an already taxed source, however if you pay only when you need to, the money is payed before tax and you have money in the bank for longer, which can be invested.

David Vaughan
Goo Roo
ACT
Soarer GT-L (4.0 V8) Lexus is300 (3.0 VVT-i 6)

Posts: 1511
Reg: 07-2005

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Monday, February 27, 2006 - 05:33 pm, by: David Vaughan (Davidv)

A cheaper method is to tell your parents to think about the 25% saving if they pay it instead

Peter Nitschke
JunkFilterer
South Australia
GT4.0 V8

Posts: 3413
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Monday, February 27, 2006 - 05:42 pm, by: Peter Nitschke (Pen)

Maybe, but if I can get 6% interest and he only has to pay 3% before tax, that is a big saving (especially in my favour hehe)

In fact I should ask him to borrow more from them

David Vaughan
Goo Roo
ACT
Soarer GT-L (4.0 V8) Lexus is300 (3.0 VVT-i 6)

Posts: 1512
Reg: 07-2005

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Monday, February 27, 2006 - 05:43 pm, by: David Vaughan (Davidv)

A brief look at the ATO (http://www.ato.gov.au/individuals/content.asp?doc=/content/45174.htm&page=5&H5) suggests it is not paid out of pre-tax salary but post-tax, so no saving there. If you make voluntary repayments of a sufficient amount then you get a discount. You may be able to salary package this but your employer may then be liable for FBT (http://www.ato.gov.au/individuals/content.asp?doc=/content/45174.htm&page=34&H34).

i.e. get advice (not mine) before deciding your best course.

Daniel Czechowski
TryHard
Western Australia
Soarer GT-T

Posts: 418
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Monday, February 27, 2006 - 05:56 pm, by: Daniel Czechowski (Dan)

That's both true and false at the same time Dave, depending on circumstances. By paying a large chuck off HECS up front, they actually do give you around 25% discount or something like that. Which means you pay that off with your after tax money, depending on what salary you're on it can vary significantly. If you're in a high tax bracket it may not be worth it (ie. you're on the 48.5% tax bracket, and you get a 25% discount). However it would be ideal for a graduate to pay the HECS off in the first year of working since it is rare his/her income will ever get to $35000 in the first financial year where a repayment would be necessary. Also the effective tax rate on such small income is very little so you are actually better off paying it up front in such scenario. (Eg. if your effective tax rate is around 20%, and here's a 25% discount, if you got the cash then just pay it all off)

If you do decide to be paying it off over period of time, the more money you make the bigger portion of it becomes the HECS repayment (from 4% of $35000 salary to 8% of $65000 salary) and yes, it does end up being before tax. In my opinion the government is a cheap source of finance. They will charge a 3% interest rate on that amount too, so you're actually better off keeping your money in the average bank account that pays 5.5% (less tax on that of course) not to mention investing on something a bit more substantial. It just all depends on individual circumstances

Daniel Czechowski
TryHard
Western Australia
Soarer GT-T

Posts: 419
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Monday, February 27, 2006 - 05:57 pm, by: Daniel Czechowski (Dan)

Think of a compulsory HECS repayment as an extra tax on top of the tax you'd already be paying... a HECS repayment doesn't reduce your taxable income.

Shane Ilich
DieHard
W.A.
Manual Single T

Posts: 727
Reg: 07-2005

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Monday, February 27, 2006 - 06:08 pm, by: Shane Ilich (Ferret)

Daniel Czechowski wrote on Monday, February 27, 2006 - 05:56 pm:
However it would be ideal for a graduate to pay the HECS off in the first year of working since it is rare his/her income will ever get to $35000 in the first financial year where a repayment would be necessary.

mate.....spoken to any engineering/oil & gas science grads lately????? even us lowly human movement grads can earn a base package of 60-70k working fly in/out or residential on the mines as exercise physiologists, etc...i've got mates who walked straight into 80k positions in metallurgy...they're prepared to live up there and work the hours for a few years.

Daniel Czechowski
TryHard
Western Australia
Soarer GT-T

Posts: 420
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Monday, February 27, 2006 - 06:17 pm, by: Daniel Czechowski (Dan)

Yeah I know that Shane, I personally know two engineering grads working for Woodside and Rio that started on min 70K a year. I was referring to the loser oriented courses such as marketing or arts where they make c.rap all. Also, consider this Shane, they don't calculate HECS based on your annual package, but on your taxable income from 1/7/XX to 30/6/XX. Say if you graduate uni in december, u already got a job arranged, and you start in February on 60K. Your taxable income for that year assuming u didnt work while at uni, will only be a fraction of the 60K. If your income until 30th June is only gonna be in the high twenty thousands, your effective tax rate is only gonna be less than 20% anyway, so a highly paid engineering grad in such a situation can take advantage of this. I wasn't referring to everybody as I said before, every1 has diff circumstances, but if you plan it right then you can always save a little.

Matthew Sharpe
TryHard
North Island
3.0 GT

Posts: 415
Reg: 10-2005

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Tuesday, February 28, 2006 - 05:08 am, by: Matthew Sharpe (Madmatt)

Damien, good luck for the 14th. Funny that was our first choice of a date too (as its our 2 year "official" anniversary) but someone else already had the venue booked.

Adam Lonergan
TryHard
Victoria
UZZ32

Posts: 214
Reg: 08-2005

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Tuesday, February 28, 2006 - 08:17 am, by: Adam Lonergan (Alchemistal)

Shane/Daniel being a grad metallurgist for Rio I know what your talking about, however the pay varies considerably from $50K to $95K first year out depending on location (within Australia) and experience. The experience comes from working holidays every year (1 years full time experience by the time you finish studying if you work every summer) where many of us were able to earn enough to pay next years HECS with cash. Low tax, plus the remote zone allowance is a nice tax deduction.

Dan McColl
DieHard
Victoria
UZZ-32 V8 Soarer #138

Posts: 742
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Tuesday, February 28, 2006 - 08:43 pm, by: Dan McColl (Hoon)

They say money can't buy happiness,
I think they're shopping in the wrong places.

Luke Nieuwhof
DieHard
WA
Soarer TT

Posts: 508
Reg: 07-2005

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Tuesday, February 28, 2006 - 09:59 pm, by: Luke Nieuwhof (Luke_nieuwhof)

OK, my story.

I am 20 now, turning 21 in about three months. Got my first car (1993 WA Ford Festiva) when I was 17 at the end of Yr 12. Paid half of the $2800 cost.

That car was fantastic, it never broke down and had been regularly serviced all its life. It had something like 215 000 ks on it when I was finished but ran perfectly.

But being in the drag racing world I felt the need, the need for quickness...err...speed.

So I started looking for something quicker. First had my eyes on Nissan Silvias, being in the next logical price bracket up (5k-10k) but was told they were unreliable by someone I trusted. Then I found the Soarer. Not sure how I came across them, I think I was actually looking for info on MR2s.

Needless to say I had made my decision! I saved the whole amount up (didn't go out much) working part time while at uni and paid $18k for my pristine baby.

I chose the Soarer because as far as Japanese imports go it seems to be one of the most reliable, I've run about 25k in it so far and nothing has gone wrong aside from the boot struts!

I do use the performance of my car, I enjoy drag racing (even at an entry level) so I needed a car that was respectable. And hey three Fast Friday wins and I think I have wrapped up the WA Sport Compact Championship so they make good drags cars!!! Hehehe.

But needless to say, as a young and reckless driver it has bitten me sometimes. Its when it snapped and bumped a kerb that it really frightened me. I take it so much easier now, I'm more concerned about fuel economy! Hey I got 10L/100kms on the last tank, not bad.

This car has given me a source of recreation (cruises, drags) as well as being as reliable as a Falcon or Commodore to get too and from work in. Plus it is a bit different (though increasingly less so) and I like driving it.

I am now saving for a house deposit which I could probably do now....ahhh life.

Peter Nitschke
JunkFilterer
South Australia
GT4.0 V8

Posts: 3433
Reg: 11-2004

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Tuesday, February 28, 2006 - 10:12 pm, by: Peter Nitschke (Pen)

Luke Nieuwhof wrote on Tuesday, February 28, 2006 - 09:59 pm:
Hey I got 10L/100kms on the last tank

You know you are getting old when you worry more about kilometres per litre instead of kilometres per hour.

Luke Nieuwhof
DieHard
WA
Soarer TT

Posts: 510
Reg: 07-2005

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Tuesday, February 28, 2006 - 11:00 pm, by: Luke Nieuwhof (Luke_nieuwhof)

I was thinking that as I wrote it.

Peter Nitschke
JunkFilterer
South Australia
GT4.0 V8

Posts: 3441
Reg: 11-2004

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Tuesday, February 28, 2006 - 11:02 pm, by: Peter Nitschke (Pen)

But very well done at the drags!!!

Shane Ilich
DieHard
W.A.
Manual Single T

Posts: 732
Reg: 07-2005

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Tuesday, February 28, 2006 - 11:32 pm, by: Shane Ilich (Ferret)

Dan McColl wrote on Tuesday, February 28, 2006 - 08:43 pm:
They say money can't buy happiness,
I think they're shopping in the wrong places.

to quote some wise words of wisdom from a VERY young daniel johns (silverchair frontman) -
"they say money isnt everything....but i'd like to see you live without it"

Peter Nitschke
JunkFilterer
South Australia
GT4.0 V8

Posts: 3444
Reg: 11-2004

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Tuesday, February 28, 2006 - 11:40 pm, by: Peter Nitschke (Pen)

But "isn't everything" doesn't mean it's nothing. Just part of the equation for a balanced and happy life.

Look at it another way, the more you have, the more you stand to lose in a divorce

Shane Ilich
DieHard
W.A.
Manual Single T

Posts: 733
Reg: 07-2005

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Tuesday, February 28, 2006 - 11:53 pm, by: Shane Ilich (Ferret)

Peter Nitschke wrote on Tuesday, February 28, 2006 - 11:40 pm:
Look at it another way, the more you have, the more you stand to lose in a divorce

in the wise words of a VERY young eddie murphy (i think he was only 22 in "Raw") - "i'm american woman now.....i want HALF!!!"

Fair point Peter...i think the main point to come from this discussion, re:finances, is that a lot of us younger guys are at the point where we're kinda feeling the pressure to establish some sort of financial stability...a steady income, some savings, getting rid of things like HECS/credit card debts, and maybe a small investment portfolio for the future would definitely take the stress/pressure out of a lot of our lives at the moment.

and getting back to Avin's original post, i think he was just warning that for a lot of younger members, cars are a very easy way of "living beyond our means" as my old man puts it, at a time in our lives when maybe we should really be seriously considering how we utilise our fairly limited incomes...

Peter Nitschke
JunkFilterer
South Australia
GT4.0 V8

Posts: 3445
Reg: 11-2004

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Votes: 0 (Vote!)

Wednesday, March 01, 2006 - 12:01 am, by: Peter Nitschke (Pen)

Yeppo, I think this discussion is all good.

Matthew Sharpe
TryHard
North Island
3.0 GT

Posts: 418
Reg: 10-2005

Rating: N/A
Votes: 0 (Vote!)

Wednesday, March 01, 2006 - 06:54 am, by: Matthew Sharpe (Madmatt)

Luke Nieuwhof wrote on Tuesday, February 28, 2006 - 09:59 pm:
This car has given me a source of recreation (cruises, drags) as well as being as reliable as a Falcon or Commodore to get too and from work in. Plus it is a bit different (though increasingly less so) and I like driving it.

I think I'd be pretty pissed if my Soarer was only as reliable as a similar aged Falcon or Commodore. I mean the number of near new Falcons you see broken down on the motorway around here - let alone 10 year old models...

Luke Nieuwhof
DieHard
WA
Soarer TT

Posts: 512
Reg: 07-2005

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Wednesday, March 01, 2006 - 08:32 am, by: Luke Nieuwhof (Luke_nieuwhof)

True bad example (insert reliable car here).

Peter Burrett
TryHard
ACT
2.5 VVTi ST

Posts: 275
Reg: 07-2005

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Votes: 1 (Vote!)

Wednesday, March 01, 2006 - 06:22 pm, by: Peter Burrett (Burrett)

I see that the provocative thread starter has been pretty quiet in the latter part of this thread. Let me offer a possible explanation; Avin is feeling old and tired, and he's thinking about having a family, and maybe one day, having to lecture his children/grandchildren about sensible behaviour on the road... so he's trying out his possible ideological position on all of us. Heaven's sakes Avin, you are not yet 30 years old and you are sounding like a fart older than me!!!!!!!!!!

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