Hyundai I20 News

Cheap tradie utes bolted out showroom doors last month as small businesses appeared to be quick to take up the Federal Government's tax incentive on $20,000 company vehicles.Sales of the most basic versions of the Toyota HiLux ute increased by 12.4 per cent while the Mitsubishi Triton -- both of which scrape below the $20,000 threshold -- surged by a staggering 42.7 per cent, as both brands cleared old stock and took advantage of new tax rules.However, the actual number of bargain basement utes delivered was relatively small (996 Toyotas and 421 Mitsubishis), and they appear to be the only two winners in a dark month for the rest of the car industry.New-car sales hit the brakes for the first time in four months in May, figures due to be released by the Federal Chamber of Automotive Industries at midday Wednesday are expected to show.The number of new cars reported as sold was down by 1.3 per cent compared with the same month the previous year, to 93,327 deliveries, making it the weakest May result in four years.The tally has surprised the industry as it had been forecasting another record after a strong start to the year. Sales year-to-date, however, are still up, by 2.5 per cent.Half of the Top 10 brands were down, including market leader Toyota, Holden, Ford, Hyundai and Nissan -- and German car maker Volkswagen closed to within just 460 sales of former top-seller Ford.The Toyota HiLux ute was the top-selling vehicle across all types -- for the 14th individual month since 2008 and the first time in almost two years -- however its sales were down by 4 per cent (once all versions of the HiLux are tallied) compared with the same month last year.Sales of utes in general were down by 0.9 per cent, as the majority of models fall outside the Federal Government's $20,000 threshold on company purchases.The car industry warns it is too early to determine if the Federal Government's stimulus package -- which is due to run until the end of the 2016/17 financial year -- is a success or a failure."None of us were ready for it, it was really only the last two weeks of the month, and there were really only a handful of cars across the entire market that were eligible," one Toyota dealer told News Corp Australia."This deal will be around for a while so I think you will find several brands try to put something together that meets the $20,000 criteria," said the industry veteran.Following changes announced in last month's Federal Budget, small businesses and sole traders will be able to claim a deduction on company assets valued up to $20,000 in this financial year, rather than have the refunds spread out over eight years, as is usually the case with motor vehicles.The changes mean sole traders will be eligible for a refund of up to $8500 on a $20,000 work vehicle, while small businesses could pocket up to $5400 -- providing quarterly tax instalments or pay-as-you-go taxes are up to date.Sole traders in the maximum tax bracket of 47 cents in the dollar stand to make the most gains, while companies with a turnover not exceeding $2 million may be eligible for an instant tax refund of 30 cents in the dollar on $20,000 purchases.Private buyers, however, will not benefit from the new scheme.Meanwhile, the industry is bracing for a boom in June, customarily the biggest month of the year for new-car sales.Toyota - 15,928 - down 7.6 per centMazda - 8717 - up 12.5 per centHyundai - 8269 - down 1.6 per centHolden - 7956 - down 11.7 per centMitsubishi - 6149 - up 6.4 per centFord - 5994 - down 13.8 per centVolkswagen - 5534 - up 12.5 per centNissan - 4467 - down 28.9 per centSubaru - 3776 - up 14.4 per centHonda - 3086 - up 21.5 per centToyota HiLux - 3173 - down 4 per centMazda3 - 2876 - down 12.6 per centToyota Corolla - 2688 - down 30.6 per centMitsubishi Triton - 2679 - up 18.8 per centFord Ranger - 2411 - up 4 per centHolden Commodore - 2217 - down 16.3 per centVolkswagen Golf - 2093 - down 9.0 per centMazda CX-5 - 1981 - up 15.5 per centHyundai i20 - 1920 - up 36.6 per centHyundai i30 - 1666 - down 34.7 per cent Source: Federal Chamber of Automotive Industries. Sales in May 2015 and the percentage change compared with the same month last year.

Are you still trying to figure out how the Budget tax changes affect your small business — and what it might amount to in savings on a new car? You're not alone.It's 10 days since Joe Hockey allowed immediate tax deductions for small businesses or sole traders for assets costing up to $20,000. The car industry is still grappling with the fine print and trying to establish which vehicles are eligible.Is the maximum amount on an eligible vehicle $20,000 plus on-road costs, $20,000 drive-away, or more?What happens if you pay the difference on the amount on a vehicle that costs more than $20,000?With some help from those in the know we've managed to zero-in on the best and worst case scenarios, and sort fact from fiction.Assets acquired and installed ready for use between 7.30pm 12 May 2015 and 30 June 2017For starters, the government will not write you a cheque for $20,000 if you buy a new car, as some believe.The changes also do not apply to private buyers, who typically account for more than half of all new-car sales.Further, the criteria for small businesses and sole traders are tougher than many may realise — and the deal doesn't last forever.The $20,000 threshold for goods that can be used as an immediate tax deduction (rather than spread over eight financial years, in the case of motor vehicles) applies to "assets acquired and installed ready for use between 7.30pm 12 May 2015 and 30 June 2017".Eligible businesses must turn over more than $20,000 and less than $2 million annually, the real estate assets of the business must be worth more than $500,000, other assets must worth be more than $100,000, and the business must have made a profit in three of the past five years. The aim is to prevent rorting.The amount each small business or sole trader may be entitled to as a tax refund will vary — even on identical vehicles — because the purchase price of the asset is counted against taxable income.In a best-case scenario, sole traders in the top tax bracket of 47 cents in the dollar could be eligible for a refund of up to $8500 on a $20,000 vehicle used exclusively for work. Small businesses taxed at 30 per cent could pocket up to $5400 — providing quarterly tax instalments or pay-as-you-go taxes are up to date."If people are rushing to buy a new car they need to consider the non-commercial loss provisions which apply to their business," says chartered tax adviser Amar Deep.In simpler terms, he says: "If your business is making a loss, you can't use that loss to offset your employment income and get a refund from the Tax Office."Meanwhile, dealers are scrambling to find out which vehicles fall under the $20,000 threshold, and how far customers can stretch the limit.The ATO says the asset must cost not a dollar more than $20,000.However, that amount is excluding GST, meaning the most basic $20,900 drive-away trayback utes are eligible.Further, given there is no GST on registration or stamp duty, an eligible vehicle in theory could be priced between $21,500 and $22,000 drive-away, which will bring in some small vans from Citroen, Renault and Volkswagen.You wouldn't be able to buy, for example, a $60,000 SUV and submit three $20,000 tax invoicesAccessories fall into a grey area. For example, experts we've spoken to say you could in theory add a larger ute tray or other accessories — taking the vehicle beyond the $20,000 threshold — providing they were on a separate tax invoice.If the dealer was prepared to split the invoice, already a common practice with some fleet leasing arrangements (where the individual and the employer pick up different parts of the tab), then you could arguably drive away in a $30,000 ute or van loaded to the hilt.But you wouldn't be able to buy, for example, a $60,000 SUV and submit three $20,000 tax invoices to offset against your taxable income. Work vehicles dearer than $20,000 will be deductible over eight years, as per usual.The $20,000 threshold applies to any goods, so it doesn't even have to be a new car. For example, it can be a used vehicle, or a small hatchback for a pizza delivery business or security company.But the amount you may get as a tax deduction depends on how much the vehicle is used for work and what your (or your company's) taxable income amounts to.Understandably, the industry has welcomed the Budget initiative, not least because it has jump-started showroom traffic before June, historically the biggest month for new-car sales."We applaud the government's small business initiative," says Patrick Tessier, chief executive officer of the Australia Automotive Dealer Association, representing 4000 franchises."We believe small business needs a stimulus and we think this will have an immediate benefit."Our dealers are already reporting a spike in interest in showroom traffic and phone calls. There is a lot of inquiry about what these changes mean and what savings might be available."The dealer group also predicts car companies will react quickly and introduce models in June to capitalise on the new arrangements."Some brands will be able to do more than others," Tessier says. "I think we will see more cars limbo closer to that $20,000 mark in June."Popular work vehicles and the deduction to which sole traders and small businesses may be entitled.Toyota HiLux ute: $20,990 drive-away, $5400 to $8500Mitsubishi Triton ute: $20,990 drive-away, $5400 to $8500VW Caddy van: $22,990 drive-away, $5400 to $8500  Renault Kangoo van: $19,990 drive-away, $5400 to $8500Kia Cerato hatch or sedan: $19,990 drive-away, $5400 to $8500Toyota Yaris automatic: $17,990 drive-away, $5397 to $8455Nissan Micra automatic: $17,602 drive-away, $5280 to $8272Honda Jazz manual: $16,990 drive-away, $5097 to $7985Suzuki Celerio automatic: $13,990 drive-away, $4197 to $6575Hyundai i20 manual: $12,990 drive-away, $3897 to $6105Figures are a guide only and apply to vehicles solely used for work. Consult a tax professional for an accurate estimate on any new vehicle you may consider purchasing.

Car dealers across Australia are reporting a surge in interest in vehicles below $20,000 as "Tony's Tradies" and small businesses try to get in before the June 30 end of financial year.June is already historically the biggest month of the year for new-car sales -- and the single biggest month for deliveries of commercial utes and vans as businesses update their models before tax time -- but this year is expected to break all records.Sole traders will be eligible for a refund of up to $8500 on a $20,000 work vehicleFollowing changes announced in this week's Federal Budget, small businesses and sole traders will be able to claim a deduction on "tools of trade" valued up to $20,000 in this financial year, rather than have the refunds spread out over eight years.The changes mean sole traders will be eligible for a refund of up to $8500 on a $20,000 work vehicle (after accounting for GST) while small businesses could pocket up to $5400 -- providing quarterly tax instalments or pay-as-you-go taxes are up to date.Sole traders in the maximum tax bracket of 47 cents in the dollar stand to make the most gains, while companies with a turnover not exceeding $2 million may be eligible for an instant tax refund of 30 cents in the dollar.Many brands are well placed to move new metalPrivate buyers, however, will not benefit from the new scheme. And tax experts have warned private buyers to not be tempted to establish a business name, because the company must demonstrate to the tax office that it is viable and has an expectation to earn income.New vehicles purchased for more than $20,000 do not apply to the new scheme and will continue to be deductible over eight years.Many brands are well placed to move new metal. The Toyota HiLux, Australia's top-selling ute, and the Mitsubishi Triton ute, are available from $20,990 drive-away in their most basic form, with a drop-side aluminum tray, a popular choice with tradies.Once the 10 per cent GST is removed from the drive-away price, they fall under the $20,000 threshold and buyers will be able to claim a deduction of between $5400 and $8500 on those models, depending on their circumstances.In effect, it brings the price of a basic ute to between $12,490 and $15,590 drive-away once the tax refund has been taken into account, which is the equivalent price of some of Australia's cheapest cars.Take advantage of the offer with cars such as the Hyundai i20, Suzuki Celerio, Nissan Micra, and the Kia CeratoSimilar savings apply to the Volkswagen Caddy and Renault Kangoo vans.Small businesses needing a city runabout to deliver parts or other goods are also expected to take advantage of the offer with cars such as the Hyundai i20, Suzuki Celerio, Nissan Micra, and the Kia Cerato, with savings range from $3897 to $8500, based on figures calculated by News Corp Australia.Indeed, the $12,990 drive-away cost of a Hyundai i20 manual -- Australia's cheapest car from a mainstream brand -- can be almost halved to just $6885 for eligible sole traders, once the tax refund is taken into account."We applaud the government's small business initiative," said Patrick Tessier, the chief executive officer of the Australia Automotive Dealer Association, representing 4000 franchises."We believe small business needs a stimulus and we think this will have an immediate benefit.""Our dealers are already reporting a spike in interest in showroom traffic and phone calls; there is a lot of inquiry about what these changes mean and what savings might be available."Mr Tessier said the tax rebates will vary depending on the individual circumstances of each small business or sole trader.We will see more cars limbo closer to that $20,000 mark in JuneThe AADA also predicts the car companies will react quickly and introduce models in June to take advantage of the new arrangements."The car industry will respond to this, but some brands will be able to do more than others," said Mr Tessier. "I think we will see more cars limbo closer to that $20,000 mark in June."Brands such as Holden, Ford, Mazda and Isuzu that don't currently have a special drive-away offer on a ute close to the new $20,000 threshold are understood to be scrambling to introduce changes to take advantage of the new tax agreements.“If people are rushing to buying a new car they need to consider the non-commercial loss provisions which apply to their business,” said Amar Deep, a chartered tax adviser.“If you’re business is making a loss, you can’t use that loss to offset your employment income and get a refund from the tax office.”Eligible businesses must turnover more than $20,000 per year and less than $2 million, the real estate assets of the business must be worth more than $500,000, other assets must be more than $100,000, and the business must have made a profit in three of the last five years.Drive your dollar further: popular work vehicles and the tax refund sole traders and small businesses may be entitled to following changes in the recent Federal Budget.Toyota HiLux ute: $20,990 drive-away, $5400 to $8500Mitsubishi Triton ute: $20,990 drive-away, $5400 to $8500VW Caddy van: $22,990 drive-away, $5400 to $8500  Renault Kangoo van: $19,990 drive-away, $5400 to $8500Kia Cerato hatch or sedan: $19,990 drive-away, $5400 to $8500Toyota Yaris automatic: $17,990 drive-awayNissan Micra automatic: $17,602 drive-away, $5280 to $8272Honda Jazz manual: $16,990 drive-away, $5097 to $7985Suzuki Celerio automatic: $13,990 drive-away, $4197 to $6575Hyundai i20 manual: $12,990 drive-away, $3897 to $6105Tax refund figures are a guide only. Consult a tax professional for an accurate estimate on any new vehicle you may consider purchasing.

Japanese brands are bringing down prices before the end of March - and the Koreans are in step with them.

Sausages are sizzling, the hessian fences are up and those weird inflatable statues are flapping in the breeze: it's clearance sale time at new-car yards across Australia.

The small-car segment has plenty of options - the players are frugal yet safe and well-appointed. Here are the best buys under $16K.

Chris Atkinson is crazy. Then again, it could be me.Atkinson is crazy fast as he flings his Hyundai i20 WRC into the scenery and I’m even more crazy for strapping in alongside him as he completes his final preparation for Rally Australia this weekend.We’re hitting 140km/h on a gnarly forest track just outside Coffs Harbour and the hotrod Hyundai is bucking and kicking as Aussie Atko bends it to his will. It feels as if we could crash at any moment as the tail slides wildly, we fly over humps, and his feet dance a crazy beat between the accelerator and brake.This is normal for Atkinson, who sees the world in rally driving slo-mo with a skill level that puts him in the top 20 in the world. For me, it’s almost supernatural and the world is accelerating towards me at a frightening pace.Right now, Atkinson is locked and loaded for the most important race of his life, shooting for a podium place in the local leg of the World Rally Championship and a fulltime Hyundai seat in 2015.From where I’m sitting, in the co-driving space usually filled by Stephane Prevot, he is doing everything right. He’s going ridiculously fast on a road where a regular motorist would be jamming the brakes and holding the speed down to 40km/h to prevent a disaster.“Top speed? We probably cracked about 200,” Atko tells me as we wait for my heart rate to drop below that number.“It was five kilometres, so the average speed was around 110. And don’t forget that’s with a couple of hairpins and the start of the stage.”I won’t forget. Not in any sort of hurry. How can I forget a Hyundai tiddler that’s been transmorphified into a forest fighter that would easily jump a Ferrari 458 or Skyline GT-R in a drag race?When Atkinson practices his rally start, with the engine popping and banging and then an explosion of speed, I’m slammed into the seat and can barely keep up with the shifts that come every time he tugs on the gear lever.“What about that? I don’t think people realise what these cars can do on slippery gravel,” he says.I can only nod my head in agreement.Everything in the car, from the smallest nut to Atkinson at the wheel, is intended to make it faster.That means the $14,990 you see in Hyundai showrooms now costs more than $1 million.Running costs? You can bank on $1000 for every kilometre the car covers.“We have seven cars at the base in Germany. The cost of each is around 500,000 Euros, just for the parts. Then you have to put it together,” the Hyundai WRC team boss, Michel Nandan, tells me.He is overseeing a three-car entry for Rally Australia that’s spearheaded by last-start winner Thierry Neuville, with Kiwi youngster Hayden Paddon also driving a car.Victory in Germany lifted a huge weight from Nandan’s shoulders, but he’s still looking for a solid result in Australia. And what about Atkinson?“He is a good driver. He should be able to get to the finish in a good position,” Nandan says.That means Atkinson is the ‘banker’ in the team, leaving Neuville free to shoot for the top.But he does not feel like any banker I know and he’s still looking for speed after clocking the 11th-quickest time in the official pre-rally shakedown.“It’s a bit too tail-happy still. I need to settle it down,” he says.“I haven’t been in the car for six months and that makes it difficult too. But we’ll settle in, see how we’re going, and have a crack from there.”At the end of the shakedown, Irishman Chris Meeke sets the pace in his Citroen DS3, ahead of his team mate Mads Ostberg and Thierry Neuville, the best of the Hyundai runners in third.Rally Australia runs from Friday morning (tomorrow) until this Sunday afternoon.Rally Australia 2014 - official shakedown times:1. Chris Meek, Citroen DS3, 2 minutes 52.9 seconds2. Mads Ostberg, Citroen DS3, 2:53.33. Thierry Neuville, Hyundai i20, 2:53.74. Jari-Matti Latvala, Volkswagen Polo, 2:54.35. Sebastian Ogier, Volkswagen Polo, 2:54.46. Mikko Hirvonen, Ford Fiesta, 2:54.47. Hayden Paddon, Hyundai i20, 2:54.78. Andreas Mikkelsen, Volkswagen Polo, 2:54.79. Robert Kubica, Ford Fiesta, 2:54.910. Elfynt Evans, Ford Fiesta, 2:57.311. Chris Atkinson, Hyundai i20 WRC, 2:58.3

Europe’s Hyundai i20 is in sight and aims to top the class.

New version of Australia’s top-selling light hatch spotted wearing no disguise.

...as the i20 gets its first total renewal since the start of Australian sales. The full body swap promises more comfort, class and refinement in a similar size at a similar price.The new i20 is already set to compete in the 2015 World Rally Championship. Expect to see it here late in 2014 with prices starting under $15,000.This reporter is on Twitter: @paulwardgover