what's best way to finance a car?

[css_jay99]

Hi all I need some advice on buying a car.

2006/2007 tax year, my self assessment has hit high rate of tax
2007/2008 tax year will also see me hit the high rate of tax

All this has been due to dividend payments i have had to make to in settlement of getting the Ex off my back.

Its pinfull when i have to pay tax on money earned and personally not enjoyed ;(


Anyway I want to spend £18k on a 2nd hand car. I cant really get it out as dividend this tax yearbecause I will pay Higher tax rate. If I wait till april this year, i might be in the same situation again.

So I guess the option is to buy the car as a company car.

Someone else was also telling me to just take a personal load out to finance it.... something aboout 0%....... Credit cards.......


Please can you shed light on the best and effective way to buy the car?


cheers

css_jay99

[THEPUMA]

I've just done mine on 0% credit cards. Apply for a couple that charge 0% with no balance transfer fee. Buy it on a different credit card (if you can convince the seller) or if not, apply for an Egg credit card which can receive positive credit card balance transfers.

The 0% credit cards will typically last 6 months. In the meantime, get a 0% on purchases credit card, which normally last 12-15 months and buy everything on those, repaying only the minimum balance.

By the time the 0% credit cards need to be repaid, the money you would have used to pay for your month to month shopping wiull have accumulated and may be sufficient to repay the 0% credit cards.

See www.stoozing.com for details of which credit cards have the various facilities described above.

[css_jay99]

it all seems complicated !

OK step 1. I have applied for a virgin card yesterday and been given a £15K limit

so i guess what i need to do now is get hat money into my bank account and then buy they car.

i am still keen on exploring idea of buying car via the company. any idea as to its effect/advantages.....?

css_jay99

[ASB]

it all seems complicated !

OK step 1. I have applied for a virgin card yesterday and been given a £15K limit

so i guess what i need to do now is get hat money into my bank account and then buy they car.

i am still keen on exploring idea of buying car via the company. any idea as to its effect/advantages.....?

css_jay99

Advantages. Company funds car with gross income, maintenance, insurance road tax running costs etc. Company can pay for all your private petrol.

Effect, plug the numbers into a company car tax calculator and look at the huge benefit it kind it generates. You get taxed on this, the company pays Class 1A NI on it.

It is possible that it is worthwhile, if for example you like a shiny new car every year and do a large private mileage. Equally if you do no private mileage and can get the taxman to accept this then there is no BIK - but you would be incredibly lucky.

[Sockpuppet]

Steal it.


HTH

[poser]

leasing a car?

[css_jay99]

leasing a car?

Spending up to £14000 leasing for 2 yrs is such a rip off. then having to pay BIK as well.

I was thinking that If I buy an X5 / 5 Series costing about £18k on credit card with 0% interest then I can increase my PAYE to cover the minimum payments on the Credit card and then pay as much as possible off with dividends and then transfer the rest off to a 0% card the following year.

How does that sound ?

Steal it.

Sockpuppet, is that how you got your Astin Martin ?


which is better between an X5/ 5 series (£18k 2nd hand price range). I know that there are cheaper... economical cars out there, but I have always dreamed of owning an X5


css_jay99

[2uk]

I know that there are economical cars out there, ..
css_jay99

Yes there are. Most of them are.

[DimPrawn]

I've just done mine on 0% credit cards. Apply for a couple that charge 0% with no balance transfer fee. .

Show me some CC that have 0% transfer fee?

All the ones I have ever seen now have 2.5% - 3.5% handling charge on 0% transfers.

Link please?

[Hiram King Of Tyre]

How about Chinese payment plan......one lump sum


Pay cash...