Used electric car through LTD company

[friday]

With the BIK reductions for electric cars over the next couple of years I’ve been considering buying a used electric car through the company. I’m looking to buy used rather than lease a new vehicle to get better value for money.

Usually buying a used car through the company makes little sense because it attracts BIK charges against the new value rather than the purchase value.

However the BIK reductions for electric cars make that less of an issue.

The car would live as a depreciating company asset and I guess be sold on after a few years the the proceeds coming back into the company.

Does that ring true? Am I missing anything obvious with this approach?

[eek]

With the BIK reductions for electric cars over the next couple of years I’ve been considering buying a used electric car through the company. I’m looking to buy used rather than lease a new vehicle to get better value for money.

Usually buying a used car through the company makes little sense because it attracts BIK charges against the new value rather than the purchase value.

However the BIK reductions for electric cars make that less of an issue.

The car would live as a depreciating company asset and I guess be sold on after a few years the the proceeds coming back into the company.

Does that ring true? Am I missing anything obvious with this approach?

Yes how VAT works

You would probably be a lot better off buying new.

[friday]

If I understand correctly it’s a 20% discount off a new car’s price.

But if a three year old car comes with a 50% reduction on the new price why wouldn’t a company be tempted if it could live without the warranty?

[northernladuk]

Electric cars have come up a lot on here. Try the search to see what's been said before.

https://www.google.com/search?q=elec...hrome&ie=UTF-8