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2016/11/27 10:49:51
PeterM

I just don' get it.......

I visited a large wrecking yard in western Sydney a few days ago.
 
After a few minutes of walking around rows and rows of dead cars it dawned on me that most of the cars there were much better than the old cars I own and struggle to keep running.
 
One car in particular drew my attention was an FG Falcon XR6 probably only 6 or so years old in the gorgeous light metallic blue colour. I walked around it wondering what on earth it was doing there. Not a mark on the paint which was glistening in the early morning sun. Finally realised the drivers front guard had a slight dint on it which could have been easily been removed and repaired in a few hours. There was no apparent structural damage. Even the air bags had not gone off.
 
On the windscreen was a large notice saying this car was a statuary write off in NSW and all states of Australia.
 
I can't get my head around why such a car was considered a write off, and of no value except in parts......
And why old car enthusiasts spend thousands of dollars and thousands of hours on the old cars struggling to keep them going.
 
Seems weird that the newer (and better) cars retain very little dollar value after only a few years.
 
I just don't get it......
 
 
 
26 comments Leave a comment
cosworthfreak
Maybe it's run over something and had chassis damage, or it's had some drivetrain failure. Otherwise, it certainly sounds good.

I'm guessing the threshold for Stat. writeoff is lower than it once was?
2016/11/27 13:17:06
Flighter
I thought I read somewhere that if the car has any suspension damage at all then it is game over for the whole car.
2016/11/27 17:03:05
NQRS
I was always of the opinion that cars were written off when the cost of repairs exceeded the value of the car by a certain percentage.  On the other end of the scale when you look at how V8 supercar teams rebuild whole cars, including chassis straightening, makes you wonder about the structural integrity of new cars to write them off with minor damage.  Maybe with the modern push to have lighter and faster cars they are becoming more and more a " throw away item." Len
2016/11/27 17:35:37
deano
waterdamage?
2016/11/27 21:06:32
BEE VEE
All above is correct, PLUS the majority of the public have too much money and too little patience to bother with all the faults that develop in these modern cars. It's likely they've decided that what it needs to make good, is money they'll never see again, or fear that other things will go wrong, and hey, "I was getting bored with that car, and want something different".......cars have NEVER been cheaper; new or used ! I too was shocked at the prevalence of current models in all brands in seemingly as-new condition I see at Simsmetal every week...................except Toyotas and their ilk.
The wreckers even take just the fast-selling "trinkets" off and Simsmetal the other 90% of the entire car
Get a shock and check the new AND used car market for "common cars"...........mind-blowing!
 
One example: 4 years ago (2012), a client sold me an as-new Luxury full-house BMW E39 525i for $500 for a car that cost over $100,000 only 10 years earlier. His daughter wanted something different after Mummy handed it to her when it was 5 years old! Four years later & is still driving faultlessly.  Not an isolated case by a long shot. I could narate another dozen or so similar cases thru F&F proving the market and free-flowing money is distorted to blazes...........do this: save your bucks for the big "melt-down" which is coming who knows when, but when it does, those "cashed-up" will get unprecedented bargains at their feet that you could only dream of now. 
 
2016/11/27 22:15:07
PeterM
"save your bucks for the big "melt-down" which is coming who knows when"
 
Interesting you are feeling the same way too.
I am studying the Commonwealth of Australia Constitution Act 1901. Interesting to learn about how many laws we all abide by every day which are in fact unlawful, and consider how the country is held together under a very thin veil of smoke and mirrors. We are not as safe and secure as we are taught to believe.
 
2016/11/27 22:42:47
PeterM
"In the UK, most people lease cars now and change them every couple of years."
 
Does that mean they are not able to pay cash for them?
 
Seems counter productive to pay interest and taxes on a rapidly depreciating liability which has little net value after only a few years.
2016/11/28 07:17:23
deano
(deep and meaningfulls on CF?)
 
If you are holding onto your cash for 'the big meltdown" then how exactly do you do it?
We've never had lower interest rates ( and my first mortgage went through 18-20% interest rates), so my money in the bank is earning nothing. Super  regulations are being played with daily, and negative gearing (rightly) is being looked at.
Getting further OT, interesting times in the US make me hestitant to look at stockmarket, so ideas ???
2016/11/28 09:04:06
jimmy b
wovr inspectors were being threatened and couldnt be guaranteed safe in the work place hence the total write off of all cars in nsw.
2016/11/28 12:19:15
PeterM
"most local bi-laws are unconstitutional"
 
Interesting you have mentioned that.
The Commonwealth of Australia Constitution Act 1901 clearly does not recognize local councils as being a third tier of government.
 
The Constitution clearly states that only the federal government has the power to raise taxes, with a few exceptions for state taxes. 
 
So clearly your local council cannot charge rates and taxes on your privately owned land, because it is not a federal government. In fact your local council is a corporation because it has an ABN. (please check your council rates notice). Governments do not have an ABN.
 
My local council appears unable to answer my short letters I have been sending them since May 2016 asking them to please provide in printed form (ie a letter) the exact law, the exact act and the exact section that states the payment of taxes on privately owned land is mandatory by the Commonwealth of Australia Constitution Act 1901.
They reply side stepping my questions and choose to send threatening and intimidating letters threatening legal action.
 
The Commonwealth Attorney-General  for Australia side steps my short letters with indirect answers despite me asking for a simple "yes" or "no" answer to my very simple questions.
 
Other government departments appear unable to reply despite my continual follow up letters.
 
The entire NSW Local Government Act (1993) is unlawful since it has not received royal assent, and because the Commonwealth of Australia Constitution Act 1901 does not recognize this "law".
 
Also a number of state owned corporations are trading/operating unlawfully.
 
We are being duped.
 
2016/11/28 21:29:28
Drewdog
From the other side of the fence we deal with alot of psychopathic ratepayers daily... People (who pay our wages aparently) think we're all making rulings from a dark chamber sitting in chairs made from the bones of dead children. You're average clerk or outside worker has nothing to do with any 'rulings' and are usually well trained in verbal judo, you'd be suprised how quickly you can shut down a dickhead with a bee in their bonnet...
 
Anyway back to the cars, I'm with the lack of patience/ timebomb theory. The oldies next door just got rid of their one owner, always garaged, serviced and pampered EL Fairmont. He reckons it was getting unreliable "Last year I had to do a radiator, this year it was the power steering, I just can't trust it" He got $500 at the wreckers for it, still licenced. Wow I thought, the old man was always patching up the family Anglia and later the Escort. How things have changed. X series Falcons used to be worth nothing, now try to find one for under 10g. Same with our small Fords... If only I had space to store that E series Fairmont...
Cheers Drew
2016/11/29 21:39:56
ratta tat tat
Leasing cars is very popular in the USA too. I was in L.A 6 weeks ago around West Hollywood and the number of luxury sports cars was impressive. There was a billboard for the new Chrysler, MSRP $80K USD. You could have this for a $2K up front and $500 a month lease plan.
 
I don't think it's all negative. It's great that Porsches, Ferraris, Lambos, Bentleys, Beamers, oh and the ridiculous amount of Teslas, are within reach of many rather than just the dirty rotten filthy stinking rich.
2016/11/29 22:45:20
Flighter
Damn Drew - makes me think my son wasted his money on his van - should have bought that Fairmont!
2016/11/30 20:44:52
PeterM
"Car leasing is a bit of a con..."
 
I was brought up the old way, "If you can't afford to pay cash for it, you can't afford it."
 
I was also brought up to believe, "If you can't buy a Dodge, dodge a Ford." (I seem to have ignored that one.)
2016/12/03 23:27:13
ratta tat tat
Yes from what my friend in LA was saying, a lot more people leasing there. It makes sense what you're saying about car manufacturers, leasing is good business for them.
 
Peter I would love to own a Dodge. One of the new SRT Hellcats please
2016/12/03 23:58:20
Wiggy333
Just try to get a home loan while running your own business. I've had several brokers quite literally pack up and walk out when they found out. I only got my loan when I quit and worked for someone else. And as for my second home it was a burnt out housing commission house, hardest to get financing for. It amazed us while we lived their what the neighbors did and had. My shoes $30 bucks from Kmart their shoes $200 bucks and that's not even talking the rest of their outfits.
2016/12/04 07:41:01
PeterM
Whooligan,
"Where is the incentive in this country/world to work hard?"
 
My parents brought me up to believe "If you work hard you will do well".
Either I was lied to, or someone, somewhere, has changed the rules.
I also easily work 60+ hours a week. If you drive past my home anyone would easily think that no one lives there because I am never home to enjoy it, and the front yard looks like the untouched depths of the wildest Congo rain forest.
 
My neighbours arrived from Chad 5 years ago (a very poor country in South Africa). They are renting. Each has a newish car. Nice home and a nice family and happily live very well thank you.
I am a white Aussie male. I have never married, no children and have lived continuously in the home I was brought up in from day one, which I have inherited from hard working parents. Witnessing other men's experiences I am scared that the crooked australian family law court will strip me of my (parents) home and other assets I have worked hard for if I decide to even decide to live with someone for three months.
 
Wiggy333,
Try BigW for runners. $12-00 normal price. If you can fluke it $7-45 on special.
 

2016/12/04 08:38:03
PeterM
"Just try to get a home loan while running your own business."
 
I hear what you are saying. I own over 90% of my assets.
Simply given up trying to refinance to a cheaper mortgage because of the hoops the lenders are demanding self employed people jump through. If I adhered to what lenders were demanding I would have no reason for the mortgage.
 
2016/12/04 09:00:10
Wiggy333
And just this week first time ever received a letter from my accountant regarding Garnishee order from tax dept. we owe them under $30k and run a successful business able to pay our debts. But they have gone to one of our customers and demanded 15% of their bill be retained and sent to the ATO. Firstly how do they know my customers and secondly what now do you think that customer thinks of my company.
We spoke to the customer who is a big builder and they said in 15 years they had received 5 garnishee orders like this. They then said in the past two weeks they had received 30 so we are not alone (their words). To garnishee at this time of year when it's the hardest time to get paid is wrong wrong wrong. Hope this doesn't happen to anyone here. I just don't get it.
2016/12/04 09:41:54
ratta tat tat
Is it possible your neighbors dont adhere to the "if you can't pay for it in cash, you cant afford it"? I guess some people can have debt and be happy at the same time. A car loan would be of little significance compared to living in a 3rd world country. I have met a lot of people from different cultures through my work and it's interesting to learn how they prioritize things differently. Like living beyond their means to own expensive cars and home because it portays an image by which they appear successful which in turn earns them trust and respect from their peers and potential clients
2016/12/04 10:03:04
Flighter
PeterM
My parents brought me up to believe "If you work hard you will do well".

Yeah, they were wrong. There's a book that came out in 1996 called "The Millionaire Next Door". The authors interviewed all these rich types to analyse their habits to see whether there were any consistencies to their success stories. They did find some, which boiled down mostly to two things: run your own business and live within your means. The second I wholeheartedly agree with as a strategy to assist success, but there were several problems with the first. One is that they only interviewed successful people. As they never spoke with people who ran their own business but weren't successful, they incorrectly concluded that running your own business is a path to millionaire status. The other is that they omitted the effect of pure, unadulterated, dumb luck - most of these millionaires were invested heavily in the stock market, which at the time was the greatest bull market in history (up 61% in the two years before publication alone). While the whole premise of the book isn't completely bogus, it is deeply flawed because the authors didn't understand how to do a statistically valid test. That probably didn't stop them getting rich off the proceeds of it though.
2016/12/04 12:25:03
PeterM
"But they have gone to one of our customers and demanded 15% of their bill be retained and sent to the ATO."
I suggest you speak with your legals about the process.
 
Firstly I would challenge the legal right of the ATO to commence, and then threaten to carry out this action.
Be specific and ask the ATO exactly under which law, which act and which section of the act is the law valid. And ask for a printed hard copy of the law to be posted to you. Ask exactly on which date was the law passed, on which date did the law receive mandate from the voting public, and exactly which day did that law receive royal assent. If the ATO is unwilling/unable to supply the documentation within 21 days refer to your legals for defence. I am learning there are a lot of "laws" that have been made up. They are unlawful, illegal, repugnant and not valid.
 
Remember always harassment and intimidation is considered unlawful and can easily be challenged.
 
Secondly I would be asking the ATO (in writing) what would be the repercussions to both yourself, your company, and your customer, should your customer be unable/unwilling to send the money to the ATO. Strongly emphasis the question is of a totally hypothetical nature only. Would the ATO then remove without notice the amount from your customer's bank account?
 
If it was me I would get nasty and provide notice to the ATO you are now withholding payment of exactly the same amount should the threat of garnishee continue and that you will continue to with hold the sum until such time the matter is dropped. (however I am not offering you advice, it is only what I would do because I am a grumpy nasty old man, for these exact reasons)
 
"Firstly how do they know my customers"
They follow the trail of money.
If you trade as a company your accountant has access to your invoices and bank account records when working on tax returns which the ATO can vet.
 
"and secondly what now do you think that customer thinks of my company"
Important point. Would be interesting to discuss privacy laws and damages to your good name and the good name of your company.
Maybe discuss with your customer if they are open to it.
 
All of this is pointing to one thing.
The country is broke and only continues to operate (for the short term) using smoke and mirrors and unlawful laws.
 
2016/12/04 13:44:02
Wiggy333
And also they know far more about us and what we do,far quicker nowadays. I mean money in and out of your account has been viewed by them from along time ago. Checking your associates seems to have gone past football ruling bodies to the ATO. If you sell your car it's sounds like you need to interview the buyer to make sure their not a drug dealer or Bikie gang member.
This was not an isolated case and as we were told many were received just in the past two weeks. My company turns over and is worth far more that the money I owe to the ATO but I refuse to a single cent to them without them having to do some work for it. Looks like they beat me at my own game.
Oh and it's funny that it's just a garnishee notice they haven't fined me for doing the wrong thing or not paying. We have an arrangement in place that we stick to. It's just another sneaky avenue they must have come up with. Like to know what would happen if I couldn't pay wages before Xmas etc because of it.
Anyway time to convert my money to gold. Those $320 dollar switches looking just about right now. (Except they will know that now as well)
2016/12/04 16:27:59
Wiggy333
Oh and case your wondering my company has run over ten years in construction. We have to provide all details that employees entitlements are paid and up to date, we have never had a case opened in Dept of fair trading and have only had 1 workers compensation case and 1 insurance case where we flooded a shopping center (Clairemont) in WA about this time before Xmas. So I call us a long running and worthwhile legitimate business that uses recycled products and helps our economy. Keith
2016/12/04 16:38:52
Timw
Most insurance companies will write off a car at about the 80% wholesale market value and if the car has structural damage or had mutliple airbags deployed usually call it a statuary right off which means now under 15 years old cannot be road registered in any state or territory in Australia. and must be used for parts or offroad/track, this was to stop shonky backyard repairs and rebirthing of vechicle that found their way back on the road and were purchased by many private sellers.

The first RS focus to be written off in Australia was by the media whilst driving it for review, I saw the car at the RS shop in Aubury and the media boys had done a good job. Shame to see a new vehicle written off, but torque steer under acceleration does unsettle most drivers untill they learn to drive a high horsepower front wheel drive vehicle.
2016/12/10 06:57:33
BEE VEE
One way Im saving money is not buying a new car every 5 years like the majority, which means those "drunken sailors" in all 3 Gov Tiers wasting our BILLIONS on futile dead end projects arent getting their money off me from all the fees, taxes and charges that go with every new car, and the insult from Simsmetal of 50c x kilo for your car when the yard doesnt want it as a trade in, or the "pulled wool over the eyes" when the caryard fools you into believing your getting a fabulous deal when you trade up, just to see it back on the lot for DOUBLE what they reckon was its max worth 5 minutes ago.
My last Brand new car was 1988 Toyota HJ61 Turbo Diesel 5 sp manual.........the only failure in all those years was the turbocharger needed a re-build in 2008 after 20 years!  .....which cost $260 as I fitted it myself. ...... Air Con is still like Mt Hotham in winter!
The wife bought a 30k 3 month old Prado V6 Petrol on 2001, for $36k instead of $56k, and in 15 years has only done a lower Rad Tank req a whole new Rad even tho rad core was perfect, plus the elec aerial has morphed into a manual, plus Air Con Pump failed. See, 13 years newer, yet not as tough as the HJ61 TD ! 
 
Changing Mineral oil Engine oil and Filter every 5,000kms or 12 months is "money in the bank" if you want them to last, or Full Synthetic & filter every 10,000kms................
Brake Fluid flush/change MAX of 2 years regardless of distance..............
Diff/s and G/box and Transfer or Auto every 60,000k drain/refill............
 
All my 9 cars that were meant to run on "Super" have been getting 2 stroke Super Outboard Oil (SOO)  at 200:1 with none suffering engine damage. Castrol Chief Chemist reckoned if the Philip Island Superbikes and Racing Outboard Marine Engines that spin 4 or 5 times faster that car engines thrive on SOO, then all Super petrol cars on our highways will too..............he was right.............. only with highly stressed track cars did he recommend lead replacement additive as well as the SOO.
 
Hope this helps
2016/12/11 23:43:00

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