Company Car

[Fish Food]

Hi,

Is it worth getting a car on a 12/24 month contract as a tax advantage or is it better buying a second hand car?

Cheers.

Fishy.

Sorry, I just found the Search option.

[ASB]

Only you know enough about your circumstances to work it out. In general the BIK payable on a corporate vehicle will often rule out that equation. Look at PCP as well.

Personally I buy cars about 3 years old and keep them until they are pretty well past it. I find depreciation much more manageable that way.

If you want a new car (bonkers if you ask me) then it is often most cost effective to buy as a company vehicle then sell it to yourself after 2 years (i.e. the BIK cost is less than the depreciation).

[Mailman]

After looking extensively in to this I have come to the conclusion that the savings you can make basically disappear because of the extra tax Gordo charges for the priviledge of having a company car.

Mailman

[Fish Food]

Cheers,

I will continue with buying 2nd hand cars.

P.

[PerlOfWisdom]

Another problem with getting a leased car is the mileage limit. If you go above it the charges can get extortionate.

[The Lone Gunman]

I believe the lotus elsie [sic] is regarded as weapon of choice for a lot of contractors as it ticks a lot of boxes in income to cost ratio.

Dont ask I dont know.

[Churchill]

I believe the lotus elsie [sic] is regarded as weapon of choice for a lot of contractors as it ticks a lot of boxes in income to cost ratio.

Dont ask I dont know.

Not for those of us that are 6ft 8"