Originally Posted by Pimpreza

I may be wrong but the only reason for buying a luxury vehicle in these circumstances would be for work, therefore all costs are tax deductable including depreciation which is usually huge on luxury vehicles.
A mate of mine usually buys a new BMW every 2 yrs as a company car, sells it off to his mates cheap "wink wink" then claims a massive loss & pays much less tax on his huge wage.
I think the reason for the luxury tax may be to discourage people from doing this.