Latest news with #ScottPape
Daily Mail
4 days ago
- Automotive
- Daily Mail
Barefoot Investor Scott Pape exposes a growing concern with electric cars
The Barefoot Investor Scott Pape has highlighted a growing concern with electric vehicles after his own father bluntly refused to even consider one. Mr Pape explained his dad was looking to buy a new car when he suggested he consider investing in a Tesla 'I told him about the Model Y, which did something that would have that old Henry Ford turning in his grave. It rolled off the factory line last week and drove itself – no humans – 30 minutes to its new owner's house. 'And presumably, if you miss a repayment, it'll get a notification that you're a deadbeat, turn itself on, open the garage door, and silently creep back to the showroom in the middle of the night' But his dad wasn't interested. 'Why would I want a bloody electric car?' he fired back. Mr Pape explained his dad's concerns were not uncommon 'My old man's concerns with EVs were more practical: where he would charge it, how much it'd cost to fix, and what it'd be worth in a few years. 'And he's not alone. While the Government reckons we'll all be driving EVs soon, last month they made up just 10.3 per cent of car sales - and that's actually a record high Mr Pape warned car manufacturers would continue to discount prices, sending the value of used electric vehicles plummeting 'With China flooding our market with cheap electric cars, prices are only going one way. 'In China, BYD – the world's biggest EV maker – recently slashed its local car prices by 34 per cent overnight He said that while EVs may make you feel like you're doing the right thing, they're still money pits. 'Cars have always been a terrible investment Reflecting on how the car market is changing, Pape said his own childhood was defined by Ford vs Holden - but his kids will have a very different experience 'I'm convinced that, for my kids, cars will be like shopping for a TV at JB Hi-Fi: lots of weird-sounding Chinese brand names that get better and cheaper every year.
Yahoo
07-07-2025
- Automotive
- Yahoo
Electric vehicle warning as BYD records biggest month of sales in Australia: ‘Race to the bottom'
The Barefoot Investor Scott Pape has delivered a warning over buying an electric vehicle (EV) as popular provider BYD records its best-ever month of sales in Australia. The Chinese brand now sells more cars in Australia than Tesla and has beaten out the likes of Kia and Mitsubishi. Pape's warning was sparked by his father buying a new car and him suggesting that he should look at buying a Tesla Model Y. But his dad wasn't a fan of the suggestion and pointed out practical concerns with buying an electric car, including where he would charge it, how much it would cost to fix and what it would be worth in a few years. Pape said cars had 'always been a terrible investment' and 'EVs just let you feel morally superior while you do it'. Cars are a depreciating asset, meaning they decline in value over time. RELATED BYD fast-charge curveball as Chinese EV takes on Tesla in Australia ATO reveals highest paying jobs that don't require university degree: '$130,000 a year' Superannuation 'red alert' for millions as $1 billion in retirement savings feared lost With cheap electric cars from China flooding the market, Pape said prices were only going one way. 'In China, BYD — the world's biggest EV maker – recently slashed its local car prices by 34 per cent overnight,' Pape wrote in his weekly column. 'I grew up choosing between a Ford or a Holden (OK, and Toyota and Mazda). I'm convinced that, for my kids, cars will be like shopping for a TV at JB Hi-Fi: lots of weird-sounding Chinese brand names that get better and cheaper every year. 'In other words, it's an electric race to the bottom … with no one at the wheel.' The cheapest EV for sale in Australia is the BYD Dolphin Essential, according to RACV, which is available from $32,138 driveaway. The GWM Ora is in second place with a driveaway price of $33,990, followed by the MG4 51hWh Excite with a list price of $36,990 driveway. Recent research from NRMA found the key reasons Aussies lacked confidence in EVs included doubts over owners' ability to find qualified EV technicians and concerns about the viability and safety of second-hand EV parts. BYD recorded its best month of sales in Australia in June with more than 8,000 vehicles delivered, a 368 per cent increase from the same month last year. This put it behind Toyota (20,225), Ford (10,103), Mazda (9,405) and Hyundai (8,407), but ahead of Kia (7,810), GWM (5,464) and Mitsubishi (5,336). Driving BYD's growth is the launch of the BYD Shark, which has become one of the best-selling utes in the country behind the Ford Ranger and Toyota HiLux. The car retails for $57,900 before on-road costs, with Federal Chamber of Automotive Industries data revealing it was snapped up by nearly 3,000 motorists in June, representing more than double its sales in May. 'With each month, you can see just how popular BYD vehicles are becoming in Australia because you can see them on our roads,' BYD chief operating officer Stephen Collins said. 'As we continue the transition to a fully-factory backed operation, we commend the foundation laid by our distribution partners as we strive to ensure this strong growth continues.' Electric vehicles and plug-in hybrids now account for nearly 10 per cent of new Australian car sales.
Daily Mail
30-06-2025
- Business
- Daily Mail
Barefoot Investor Scott Pape involved in a wild street brawl with shop owner after asking a simple question
The Barefoot Investor, Scott Pape, recently found himself in a fiery showdown outside a pawnshop - all sparked by a simple question. Mr Pape said he 'made a giant arse' of himself in public while looking for a café for his morning coffee. The financial guru said he walked past a pawnshop and decided to go inside. 'Behind the counter sat a bloke in his mid-forties: bleached blonde hair, an NBA 2017 All-Stars tee that looked vacuum-sealed to his body, and a (possibly pawned) Shane Warne-style diamanté earring,' Mr Pape said in his weekly newsletter. 'He didn't look up. Just kept scrolling on his phone. So I coughed. Then I coughed a little harder. 'Eventually, he raised his head, locked eyes with me, and let the silence stretch just long enough to make it awkward.' The man said, 'You look like you need some money,' before Mr Pape fired back, 'What interest rates do you charge?' Mr Pape said the man slowly put down his phone before yelling at him to get out of his shop. 'He slowly put down his phone, eyeballing me - blokes with no money don't ask about the interest rate first up. 'Get out of my shop!' he snarled. 'And that's when the trouble started.' 'As I walked out, I noticed a poster of his interest rates and charges in the window. And for reasons I still don't quite understand, I whipped out my phone, and did the most Karen thing I've ever done in my life: 'For reasons I still don't quite understand, I whipped out my phone, and did the most Karen thing I've ever done in my life: I stood on the sidewalk and took a photo of the poster. 'Then I heard …'BEE BAW' Shane Warne was bowling out the doors with steam coming out of his blingy ears.' The man yelled at Mr Pape to 'put your phone away, this is private property' before lunging towards him in an attempt to grab the device. 'I wrestled a bogan in the street,' he said. Mr Pape described the incident as 'not his finest moment' as the pair of middle aged men grunted and swore at each other while standing in the street. 'Yet later on I looked into it, and what I found made me even angrier' 'It turns out, pawnshops have been around since the 15th century. Back then, they were known as banks of pity, lending small sums to people doing it tough, in exchange for something small they owned.' Mr Pape said Aussies should not think of pawnshops as 'sleazy Salvos' but rather 'loan shark shops'. 'Here's how it works: You give them your Nana's necklace, they give you cash. 'Pay them back (plus enough interest to buy your nana's first home in 1974), and you get it back. 'And if you don't? They flog it in the front window. 'Make no mistake: in the current cost-of-living crisis, these guys are not offering a lifeline, they're stealing food off the table from kids,' Mr. Pape wrote. 'You see, these loans are structured to roll over again and again, which means some end up charging the equivalent of a staggering 480 per cent interest. 'And it's all perfectly legal, because pawnshops are largely exempt from the National Credit Act.' Mr Pape said the solution was for the government to hold pawnshops to account and close the loophole that allows them to charge an exorbitant amount of interest. 'These loans are structured to roll over again and again, which means some end up charging the equivalent of a staggering 480 per cent the National Credit Act.' A 2024 report, published by the University of Melbourne, found the cost of living crisis had pushed a greater number of middle-class Australians to the services of a pawnbroker. The report, which surveyed 1,472 consumers, found 582 had used pawnbrokers, with some legally being charges rates equivalent to 420 per cent a year. It also found 60 per cent of those who had turned to pawnbrokers had also used buy now, pay later or payday loan service in the past. 'They take out new pawn loans and incur more fees in the hope they will somehow find a way to get their pawned items back,' the report read. How pawnshops work 1. Bringing in an item You bring in something of value - like jewellery, electronics, tools, or musical instruments. The pawnbroker assesses its value and offers you a cash loan, usually a percentage of the item's resale value. 2. Loan terms Loans usually last one to three months. To reclaim your item, you repay the loan plus interest and fees. Interest rates can be high - sometimes equivalent to annual percentage rates over 100 per cent. 3. What happens if you don't repay If you don't repay the loan on time, the pawnbroker keeps your item and sells it. There's no impact on your credit rating, and you won't be chased for the debt.
Daily Mail
24-06-2025
- Business
- Daily Mail
Barefoot Investor reveals why the Albanese government is addicted to spending
Bestselling finance author Scott Pape has slammed Anthony Albanese for being addicted to debt - with government spending at a four-decade high. Pape, best known as the Barefoot Investor, noted record-low interest rates during Covid had encouraged governments around the world to go on a spending binge. Under the heading - Why Governments Are Addicted to Debt - he noted in his column that bond markets ultimately decided how much politicians could borrow. These are the investors who lend governments money. 'For decades, cheap borrowing has allowed politicians to dodge making hard decisions,' he said. 'Yet with inflation back and interest rates rising, the bond market's getting twitchy again. And no politician wants to actually admit that everything's fine… until it isn't.' When interest rates rise, so do bond yields - or the annual interest payments governments borrowing money have to pay back to those lending it money. While yields have fallen since the Reserve Bank started cutting interest rates again, higher government spending means more government interest payments. Treasurer Jim Chalmers last week became touchy when asked at the National Press Club about government spending being at the highest level since 1986 outside of the Covid pandemic. 'It's not the highest spending since the 80s. I know that you mean absent Covid, but I think it's unusual that we absent Covid,' he said. 'Quite frequently I'll hear we've got the weakest growth in 40 years, or we've got the highest spending. That's not true.' Under Labor, government payments are set to make up 27 per cent of gross domestic product in 2025-26. This is lower than the 32.1 per cent level of 2020-21 during the height of Covid, when the federal government effectively paid workers to stay home during lockdowns with JobKeeper payments and a temporary doubling of JobSeeker unemployment benefits. 'Let's not forget that we had spending as a share of the economy almost a third,' Chalmers said. Chalmers argued Labor had been economically responsible by ending the former Coalition government's low and middle-income tax offset after coming to power in 2022. 'And some of those things that we didn't extend when we came to office, they were difficult at the time, some of that spending,' he said. 'We had a lot of people calling for us to extend the fuel excise change, the LMITO was ended by our predecessors but we got called on to extend it. 'And so that spending that was almost a third of the economy during Covid, we got it down to less than a quarter of the economy in 2022–23.' Labor trimmed government payments to 24.8 per cent of the economy in 2022-23, and 25.2 per cent of GDP in 2023-24, when it also managed to deliver two consecutive surpluses. These were the first surpluses since 2007 and the first for a federal Labor government since 1989, thanks to higher iron ore prices. But gross government debt is set to surpass the $1trillion mark during the next financial year, and make up more than a third of the economy, with Treasury forecasting no return to surplus in coming years. Chalmers did his PhD thesis on Paul Keating as prime minister. Under Bob Hawke, Keating was also the treasurer who cut government spending so its proportion of GDP would fall from 27 per cent in 1986-87 to 22.9 per cent of GDP in 1989-90.
Daily Mail
10-06-2025
- Business
- Daily Mail
How much in superannuation do you need in Australia to retire?
Australians may need less superannuation to retire comfortably than previously thought. AustralianSuper, a union-backed industry fund, has released new research showing that 94 per cent of Australians get by with less than seven figures in superannuation. The Association of Superannuation Funds of Australia recommends $595,000 for a single to have a comfortable retirement. Comfortable is defined as an overseas holiday every seven years and a getaway within Australia annually. Ross Ackland, AustralianSuper's head of advice and guidance, said many could still live a comfortable retirement with well short of $1million if they have the right planning. 'Some people think they need to be chasing a seven-figure balance to live well in retirement, but many Australians are thriving with less because they've planned around their lifestyle, not just a number,' he said. Financial guru Scott Pape said Aussies could easily retire on much less than what was quoted by The Association of Superannuation Funds of Australia, which he said was out of reach for most people. 'The ABS says that the median super balance on retirement is $250,000 for men and $200,000 for women,' he said on his Barefoot Investor website in 2022. 'So for an average working Aussie, why bother trying?' Pape also cautions that super funds may inflate retirement savings targets because they want people to invest more. 'The people who calculate the ASFA figure are … the super fund lobby. It's a bit like asking old Dr Kellogg, "What's the most important meal of the day?" (Breakfast, of course!) 'If you own your own home, get the aged pension, and you're willing to do a bit of paid work, you could comfortably retire on as little as $250,000,' he said on his website. He also revealed what he thought was the best figure, based on data from Super Consumers Australia. 'A group called Super Consumers Australia (a partner of CHOICE) has done the research and come up with their own figures. 'Not only are their figures much more attainable, they're based on ABS research on what Aussie retirees spend. Super Consumers Australia estimates that a single homeowner needs about $310,000 in superannuation, and a couple needs around $420,000, at retirement to maintain their current living standards throughout retirement. 'Combined with income from the age pension, homeowners with this amount of super can reliably provide an annual amount of $43,000 and $62,000 until age 90,' it said earlier this year. Only one in five Australians retired with more than $500,000 in super during the past five years, acording to a YouGov poll of 1,000 people commissioned by AustralianSuper. Almost half, or 44 per cent, retired with less than $100,000 in super. A third, or 35 per cent, retired with $100,000 to $499,000 in super. Tax office data shows Australians typically have $164,126 in superannuation. Average-income men in their early sixties typically had $218,169 in super compared with $195,507 for women. Those with more than $500,000 in super typically earned more than $180,000, putting them in the highest income tax bracket. Australians can access their super at 60 but have to wait until 67 to qualify for the age pension. Just 0.5 per cent of Australians have more than $3million in super and this group of 80,000 Australians face a new 15 per cent tax on unrealised gains in their account. This means they would be taxed on paper gains before assets are sold, should Labor's legislation get through the Senate as expected. The headline rate of super earnings taxes, for balances above $3million, would double to 30 per cent, based on the 15 per cent unrealised gains tax and an existing 15 per cent tax on earnings during the accumulation phase of super. AustralianSuper released its findings as the Australian Prudential Regulation Authority chastised Australia's biggest super funds for failing to adequately prevent cyber attacks in April. 'Although APRA has consistently emphasised the importance of robust cyber security, it is clear that current controls are not always commensurate with the evolving vulnerabilities and threats, nor with the criticality and sensitivity of the member data and assets they protect,' it said in a letter to superannuation funds on Tuesday. AustralianSuper was hacked in April, along with industry super funds Australian Retirement Trust incorporating QSuper and Sunsuper, REST and Hostplus. Customers of Australia's top four funds were locked out of their accounts after a cache of passwords was stolen. Insignia Financial was also affected, as the owner of MLC, Australia's biggest retail super fund and ninth most popular retirement product overall Super funds have recovered from the early market uncertainty over new US trade tariffs, with average gains of 2.6 per cent in May for balanced-option funds, new SuperRatings data showed. But SuperRatings executive director Kirby Rappell said uncertainty was likely to persist. 'As we approach the end of the financial year, we see that investors seem to be able to look past tariff uncertainty,' he said. 'Following the positive month it appears funds are back on track for a strong financial year result, despite the noise and uncertainty. 'While this will likely be a relief for members, we can see that volatility is likely to remain for some time.'
