Why Your Next Ute Should Be a Ute-Based SUV
A ute-based SUV offers the size and power of a ute, the benefits of a consumer vehicle, as well cost savings you may not have considered – savings that could easily add up to over $10,000, over the life of the car. We’re not alone in seeing the financial benefits in shifting from a ute to SUV – ute-based SUV offerings are growing with demand.
This month images of the new Nissan Navara based SUV have leaked online as the unnamed model is slated for production. This model may be unlikely to hit the Australian market, but you won’t miss it, as we already have a large offering of ute-based SUVs with more to come. Popular models already on the market include the Ford Everest, Holden Trailblazer, Isuzu Mu-X, Mitsubishi Pajero Sport and Toyota Fortuner.
If you’re in the market for a ute, a SUV may be a smarter and more affordable choice, depending on your lifestyle. Why? Taxes.
When it comes to taxes, a ute isn’t seen as a car, it’s a utility vehicle, and is claimed differently. To put it simply, a car has two ways it can be claimed as a tax deduction, by the cars value or by percentage of business use. A ute, can only be claimed as a tax deduction by the percentage of business use.
If your ute is in your garage during your morning and afternoon commute, then its business use is 0%. This could mean losing thousands, to often over ten thousand, in savings on purchase price and running costs over the life of the car.
So, before you make your ute purchase, there are a few questions we’d like to consider:
- Will a ute-based SUV serve the same purpose?
- How often will you use the vehicle as part of your commute?
- If you are using the vehicle as part of your commute, is this the vast majority of your private use?
- Will this be your only car, or are there additional cars in the household?
Based on your answers above, it can be more cost effective to switch your ute to an SUV, or even to purchase a cheaper ute as well as another vehicle for regular personal use. If you’re not sure what will work for you, contact our team, and we can run you through the best options that fit your needs.