Irish Taxi Forum
Public Area => Taxi Talk => Topic started by: John m on March 16, 2023, 08:19:59 am
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If we had a proper business Taxi Group the retained Economist would be asking .What is the Business Case for buying a New Car ,
I read on here that 20K off a New EV is free Money and must be grabbed with both hands ,But is it ?
Is there any Business Case for buying a New Vehicle to taxi ?
Is an EV more Economical to Run ? More Reliable ?Can it Carry More paying Passengers ?,Is their a trend twords EV bookings over ICE vehicles ?How much more per shift will you earn with a EV over a Internal Combustion Engine Car?
Any New Car .After the initial depreciation on Purchase .How much more will you earn per shift with a 50K car over a 15K part worn car ?
Can anybody make a rational case for investing Good money into an industry where an Eight year old Prius has the same earning potential as 56K battery operated EV ?
These are Rational Business Questions any Business man would include in his Business Plan .
Today it is likely that the ECB will increase Interest rates and they will increase them later in the year .This will probably mean by this time Next year the average Mortgage rate will be 5.25% For those that dont understand the Implications of that it will result in a 200K mortgage costing the average mortgage payer around 400 euro a month more in repayments .That is a huge amount of money on top of what you already pay so less discretionary spending .Have you considered the implications of less discretionary spending on your Sales as that is what we sell taxi Services .
In an economy where everybody is tightening their belts why would taxi drivers invest into a diminishing market .
Anybody like to make the case for investing big Money into this industry now ?
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For the big earners it may be to their advantage.
Less tax to pay.
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For the big earners it may be to their advantage.
Less tax to pay.
Not true How will you earn more with a new car than a Part Worn Car ?Or Older Car ?
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For the big earners it may be to their advantage.
Less tax to pay.
Not true How will you earn more with a new car than a Part Worn Car ?Or Older Car ?
You won’t earn more.
You will pay less income tax.
Bigger capital allowances.
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I don't see capital allowances as an incentive to spend. All you're getting back is the income tax (in most cases 20%) on what you spent over a prolonged period.
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I don't see capital allowances as an incentive to spend. All you're getting back is the income tax (in most cases 20%) on what you spent over a prolonged period.
But you wont earn any more with a new car .The meter reads the same !
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You'll earn less after capital allowances hence you pay less income tax but, as above, I don't see that in itself as justifying enhanced investment.
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Taxi drivers like new stuff.Especially if there are gadgets involved.
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The European Central Bank raised interest rates by 50 basis points today as promised, ignoring financial market chaos and calls by investors to dial back policy tightening at least until sentiment stabilises.
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Ever since I started driving motorised vehicles I always bought what I thought I would find pleasureable to drive at the time, whether it was my first Yamaha 50, or my first new boring Avensis taxi, and most times, not always, was a vehicle that had a bit of a sparkle about it. In the case of taxis I always went for what I hoped would be a long term car, and not have to worry too much about reliability, or changing every 3 years or so, and that customers would also appreciate. My home is a single car home, so the bit extra on the one car is ok for me. I don't foresee a situation for myself that I will be able to have a home charger, hence hybrid. I had to dig deep for this one, but fortunately did not have to borrow money, and if I don't make any more mistakes it will very possibly be my last car. If I apply the insurance payout on the last car to the cost of this one rather than the last one, and ignore increased premiums, and take into account the tax depreciation I can live with the bottom line if it is taxi serviceable for nine years, i.e. €21.5k , or €2388 per year. Fingers, and toes crossed.
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The newer car is likely to be more reliable and have less breakdowns so you can plan your work schedule better. Garages don['t really keep spare parts anymore for any type of car so if you have a crash or big mechanical failure, you could be off the road for weeks or even months.
I know the last few years with my 14yr Octavia wasn't exactly stressful but I was always pleasantly surprised when it started each morning. I also had to factor in that it would need a mechanic visit every few weeks at, say, €100/visit. That was a serious dampener when you're trying to pay your bills and save for a new tool (car) for your job.
With my new car (which cost me €12k & no loans so I'm a bit different), it's been predictable. A service every 30k km (?) for 3 years to keep the warranty active and new front tyres every 30-40k km. All quite predictable and therefore easy to save for. I just have to avoid crashing!
I would agree that paying €50k+ for a new tool is crazy when you can get tools for a fraction of the price with very good reliabilty. But it was always the same in this game - some bought junkers and some Mercs - but most bought inbetween what they could afford.
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I think Bob is doing the right thing for his situation.He earns more than three or four of us combined so he should buy the most comfortable and reliable yoke he can afford.
If I worked hard I'd hate to have the range of any EV holding me back.I do small mileage and I'm really am not too excited about charging a vehicle for hours while I'm in bed.I've two petrol stations near my gaff and I only fill up once a week.It's still very convenient to use petrol for now.
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Dublin Pub Trade ,,Publican Tom Mulligan said: “We decided we’d take some slack ourselves because everything has gone up for everyone.
“We’re watching pubs around here close down on a Monday and Tuesday night, or in the daytime.
“Some pubs are opening Wednesday to Sunday or from Thursday to Sunday.
“We don’t want to see that happen here. We have staff to look after.
“Tourists are a mainstay because we have such a good name for Irish music and culture.”
Why would you upgrade to work in a diminishing market ?
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BEFORE YOU SPEND OR BORROW >>BEWARE ,,,Surging living costs have forced almost eight out of 10 Irish people to changed their spending habits in the past six months. Nearly half are fearful about the state of their personal finances.
The results are from the latest PwC Irish Consumer Insights Pulse Survey and suggest that what had been booming levels of consumer spending, boosted by Covid- era savings, could moderate this year.
The research found 79pc of Irish consumers have changed non-essential spending in the last six months. Almost one in five (19pc) Irish consumers report they are extremely concerned about their financial situation while another 26pc are very concerned.
Almost all Irish consumers say they will adopt cost-saving behaviours over the next six months including a big drop in the numbers planning home improvement work this year (26pc versus 34pc) and sharp drops in planned spending on fashion and entertainment.
That is at least partly because almost half of those surveyed expect they will have to spend more on groceries.
For retailers the research also provides insights that flesh out evidence from elsewhere that the big shift to digital retail during the Covid-19 pandemic has not been sustained, in part because of consumer preference.
A majority of respondents said identifying knowledgeable and helpful sales assistants was the most appealing aspect of in-store shopping, although self-service check-outs and click-and-collect ordering are also popular.
On the other hand, while consumers trust retailers more than they do social media sites, a hefty 38pc said they rarely or never buy from online websites as a result of data privacy concerns. Only 14pc of Irish consumers have used the Metaverse platform for entertainment, virtual experiences or purchasing products in the last six months, lower than global peers (26pc).
The head of PwC Ireland’s retail and consumer practice, John Dillon, said the research highlights a heightened level of concern among consumers and shows they are very clear about the actions they will take to manage their budgets.
“For retailers to thrive in this challenging environment and maintain consumer engagement, they must remain focused on delivering value to the consumer, invest in the in-store store customer experience and ensure their omni-channel propositions deliver a frictionless, customer-centric experience,” he said.
Despite the pressure on household budgets, around half of Irish consumers still plan to take an international flight (45pc), stay in a hotel (52pc) and take a staycation (44pc) in the next few months.
But spending habits are changing, with savvy shoppers here especially focused on making savings by buying own-brand products or shopping around for promotions and special offers or cheaper brand alternatives.
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We've painted ourselves into a corner with the adoption of the apps and card payments.Yesterday I got only two street fares in a busy six hours that offered me cash payment.The big tax bills some lads are getting might be encouraging them to stretch a bit further on their new vehicles.Easy to do while it's relatively busy.
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We've painted ourselves into a corner with the adoption of the apps and card payments.Yesterday I got only two street fares in a busy six hours that offered me cash payment.The big tax bills some lads are getting might be encouraging them to stretch a bit further on their new vehicles.Easy to do while it's relatively busy.
Merch Inflation if you include Interest rates is running @ 9.5% thats 40 notes a week less spending power so that 40 comes out of the 120 you had left after your existing commitments Like food rent and Transport costs .That in real terms is a 33% reduction in discretionary spending as that money must come from what was left over after living costs were deducted .A lot of Covid Savings have now been exhausted .Fuel subsidies are going so more costs of living ,ESB help to go ..And My personal Red Flag Is what Dale from the Book told me .A lot of Tech Jobs to go .That Chat GPT thing will write code and put even more High Paid workers out of work .Ireland depends to much on Tech and Life Sciences for Tax revenues .Too Many Graduates coming out of Colleges and Universities .Think we will see mass emigration over the next three Years .A huge contraction in available money to spend on Drink,Drugs ,Gigs and Gnosh .
Its beginning to look a lot like the 1970 or 80s all over again .This could be the Lull before the Storm .I would be weary of committing to more debt .IF and its a BIG IF the Shinners get power We could be fucked .So far Leo has done away with Gender ,Labour attacked Religion Now Marxism under the Shinners will attack Property .Vulture funds now looking for 10% mortgage Interest on already distressed Loans .The Little bit I know about Economics I would advise make sure you can cover the Morgage no matter what ,add another 2% on top in interest rates above what you are paying now and if you are renting expect a 10 rent increase over the next two years .
There is another Flu in China and nobody is saying anything .Bird Flu is now killing Dolphins and Seals what if it spreads to Fish .The world starves ?Think it was Coola or Watty Opined a few years ago what Fevers or diseases are in cold storage in the thawing Arctic .
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Horses for courses. I'm not criticising what any man chooses to do with his hard earned. I just don't agree with the tax write off argument. In most cases you're saving 20% of what you spent over a prolonged period of time yet (again I'm not criticising anyone on here or elsewhere) one commonly hears the argument in terms that's make you think you get all the money back in the form of reduced tax bills. Just to be clear Qualifying Expenditure is written off against profit from the trade in question reducing your taxable income i.e. the entire amount is not written off against your tax liabilities, it merely reduces the same proportionately.