Car Lease via Ltd rejected - insufficient capital retained

[Lance]

not sure how an old banger is kinder to the planet than an EV!?

a new EV has a horrendous carbon footprint. In fact any new car does.
Whereas the old banger's footprint is only down to the fuel and the repairs.
This is a hotly debated topic, and many greenies dispute it, but all the disputes I've read on it all assume that electricity is zero carbon, which it is nowhere near yet.

After many miles (numbers vary on the cars, but a figure of around 150,000) a newer car, may have a lower footprint than an older car. Unless you're talking about keeping the electric car for that long (which you're not as it's a lease), then buying a banger (Ford Focus/Golf/Skoda etc.) is going to be far greener.
The when you have enough cash in the company, you can think about it again. Although BIK is likely to be different, electric costs are likely to be different, and hydrogen (or other chemically derived energy source) will likely be on the horizon.

[Magpie252]

Full disclosure - I chucked in contracting a few years ago & now run my own Vehicle Financing Franchise

Each finance company have their own lending criteria, without knowing which company you're working with I can't advise further.
Lex & Arval for example require a minimum of two years published accounts from a Limited Co before their credit checking algorithm will even consider an automatic approval.
LeasePlan however will consider1 years accounts when paired to a 9 month deposit & a directors personal guarantee.

If you are moving funds out of you Ltd., appeal the decision with the finance house & supply your latest accounts & bank statements to show where the money is.
very good chance that this would be approved

[Wonky]

Full disclosure - I chucked in contracting a few years ago & now run my own Vehicle Financing Franchise

If you are moving funds out of you Ltd., appeal the decision with the finance house & supply your latest accounts & bank statements to show where the money is.
very good chance that this would be approved

Thanks … the lease chap queried it with the finance company and they’ve asked for 6 months bank statements and company accounts as of today. I’ll ask him to highlight the flexible overpayments on the pensions as well.

However it may not be nessesary as I’ve also been looking at a vehicle subscription service as well.

The accountant advises me it’s treated the same as a lease tax wise but while a touch more expensive it has the huge advantage that you can …

1: cancel or pause or the agreement I defiantly at any point after 6 months (takes all the risk out of contact being moved inside ir35 and being stuck with a 3 year lease)

2. the mileage is very generous (ave 18k per year)

3. you get a new car every 6 months

4. it includes insurance.

Had a chat with the fella today and he seemed to thing with it being much shorter term the cash in the bank was unlikely to be an issue.

[ladymuck]

A new car every six months sounds extremely wasteful and not at all 'green'.

[northernladuk]

A new car every six months sounds extremely wasteful and not at all 'green'.

And I'd be surprised if it's good value. Carrying the cost of the worst period of depeciation will be borne by someone and you can only imagine it's the customer.

[eek]

A new car every six months sounds extremely wasteful and not at all 'green'.

It’s how Jaguar stay in business

[Wonky]

And I'd be surprised if it's good value. Carrying the cost of the worst period of depeciation will be borne by someone and you can only imagine it's the customer.

That was my initial thoughts as well … I should qualify the cars are new or nearly new … guaranteed to be low mileage , high spec and less than 12 months old.

Price for the vehicle in question is comparative to a 3 year lease but actually better value in some cases when you look at the mileage allowance , insurance included.

You also have the option to keep it for longer than 6 months. But the real bonus is the flex to pause / return the car at short notice should circumstances change.

[courtg9000]

It’s how Jaguar stay in business

There has to be a tax thing with employee vehicles too, given the amount of JLR vehicles there are around here. Almost everyone has one!

[WTFH]

It’s how Jaguar stay in business

It’s how many car companies in the UK keep their sales figures up. Give an employee a new car every six months, then sell that to your internal dealer chain as “nearly new”, and you’re still selling it to the punter above the cost price, particularly if you can get them to buy it on a finance scheme.

[cannon999]

Limited liability means that the lease company could easily lose the car. It's not like a personal lease where the lease company can get your house and pursue you for decades.
Couple that risk, with the shortage of car availability right now, why would they do it?

One option would be to rent rather than lease. Rental will cost more so the finance companies have more reason to take the risk.
Or find a lease company that charges much high APR (same reason).


Or... I dunno. Drive what you can afford? Forget this idea and just buy a £5k banger personally and charge 45p per mile. Will cost far less, save more tax, and be kinder to the planet.

Oh no it doesn't. They make you sign personally to guarantee the lease.