Cars

[ratewhore]

There is a cunning wrinkle to do with Hybrids, apparently, that can save a shedload of cash. Of course, you end up with a Toyota Pious or something equally horrific - although Lexus do a couple of nice ones - but it might be worth having a dig around.

I leased the hybrid lexus a couple of years back. My accountant did my figures to show the difference between leasing through the company, and me increasing my dividends to cover the private costs of lease-purchase.

When it came down to it, the difference was £50/mth in favour of the personal lease-purchase. But that didn't take into account costs like insurance, maintenance, etc, etc.

Points to note: My accountant told me the financial difference was negligible when it's your company. If you're a permie, it's different.

Next point; if you claim mileage, it gets very complicated with a company lease, as you can only claim what you spend on 'business related' fuel (not mileage - fuel!).

The figures come well out in favour of a personal lease-purchase if it's not a hybrid.

And anyway, you're a contractor. Go and buy it cash...

[Spacecadet]

Kia are offering 3 years 0% on some of their new cars, needs a 30% deposit if I remember correctly

[BolshieBastard]

Land rover are currently doing a pretty tasty interest free offer on a new motor. A rarity in this day and age...

What!? 50% down payment and balance paid off in 12 months? Dont think so.

[MickeyP]

Land rover are currently doing a pretty tasty interest free offer on a new motor. A rarity in this day and age...

[BolshieBastard]

I'd like to finance a car via my ltd co. However my accountant tells me that it's not very tax efficiant.

I'm interested in leasing a car rather than buying a car, buy getting a loan for it etc.

Is it possible to have a tax efficiant business lease whilst on the flat rate scheme. Or a personel lease and claim the monthly charge as an expense.

What does the panel think ?

I looked into this and my account told me the same thing ie its very inefficient tax wise.

Apart from that, be very careful on any car finance that allows you to give the car back at the end of the finance term.

The motor \ finance industry always tells you that you can 'simply hand the car back.' And you can!

But, what they dont tell you is the extra cost they will stiff you for handing it back irrespective whether its a lease, PCP or contract hire etc.

Expect to pay at least the equivalent of two month's finance ie if you paid £325 per month while financing the car, then expect to pay an extra £650 to the finance co. Why? because they will charge you for every little scratch over 30mm (just ove an inch), every little car park ding, kerbed wheels etc.

When you hand the car back, a nice man will go over it when he collects it and point out the defects in the paintwork and bodywork you thought were 'fair wear and tear.'

But, once they get the car back to their workshop, they go over the car at least 3 times looking for more defects. A particular favourite missed by most drivers is the front valance or splitter between the grill and botton of the bodywork. This is especially susceptible to car park scrapes, kerbs and general road debris you just cannot miss when driving.

I decided not to lease a car in part because of this. Also, the lease companies tell you a better marque such as BMW, Mercedes etc cost less because they depreciate less. This is utter bollocks because it can easily be seen BMW's and Mercs etc, have the highest leasing rates!

A friend of mine recently gave his 2 year old Merc E Class back to MB. It was a very well spec'd car and he kept it in good condition. He had minor body blemishes corrected professionally before he gave it back. The guy who collected it even said it was one of the best condition cars he'd seen returned.


MB Finance stiffed him nearly £1000 to 'correct' faults classed as more than fair wear and tear.

Oh, and this was on a PCP at a time when car values went through the floor.

Go figure.

[malvolio]

There is a cunning wrinkle to do with Hybrids, apparently, that can save a shedload of cash. Of course, you end up with a Toyota Pious or something equally horrific - although Lexus do a couple of nice ones - but it might be worth having a dig around.

[DS23]

i think the general opinion is that there ain't no way it will work out better. take a dividend and buy / lease / rent / finance the thing.

any relation to daveb?

[DaveP]

I'd like to finance a car via my ltd co. However my accountant tells me that it's not very tax efficiant.

I'm interested in leasing a car rather than buying a car, buy getting a loan for it etc.

Is it possible to have a tax efficiant business lease whilst on the flat rate scheme. Or a personel lease and claim the monthly charge as an expense.

What does the panel think ?