Reply to: Buying a Lease Car at the end of the term

[sadkingbilly]

I had an MG california in swizzyland and thoroughly enjoyed it!

[milanbenes]

it wasn’t about popping their clogs earlier it was about how to use their finite financial capacity in this stage of their life and my thoughts were why not use the financial capacity for fun things

in the end they used that capacity towards a VW California and they love it

it’s a wonderful machine equally good for day trips and having a cup of tea as it is for camping and if you want you can still stay in hotels or b n b’s it just makes touring more comfortable at their age easy to get in and out they can see over hedges and you can park it at asda they’ve been all over the uk in it and down to Portugal and up to Norway

and they couldn’t have done that with solar panels which will be cost neutral after ten years

Milan

[BolshieBastard]

last year my mum was talking about buying solar panels because they will pay back in ten years, I said mum, forget that, and spend the money on holidays, you might not be here in ten years so what's the point

Milan

But your position pre supposes the parent will live another 10 years and not pop their cloggs earlier.

Id have solar tomorrow but, in our house big ticket decisions are joint and wifey doesnt see the point spending 10 grand up front to cut heating bills. I can see her point of view to a degree.

Myself, I see solar as a future investment on the price of the house in addition to not being held to ransom by the government and utility companies over the price of electric. Saving the planet, I think that's bollox because India, Germany, USA, France, Russia and others are building new power stations fueled by coal by the bucket full. What individuals do wont have any impact.

[milanbenes]

this opens a whole new debate doesn't it

which we could discuss until the cows come home

essentially it boils down to how green is green

if a solar panel and an electric car makes people feel they are
saving the planet then good for them

time will tell

Milan.

[WTFH]

last year my mum was talking about buying solar panels because they will pay back in ten years, I said mum, forget that, and spend the money on holidays, you might not be here in ten years so what's the point

Milan

I assume you are not the biological parent of any offspring, or it it your default attitude - kick the can/responsibility down the road?

[milanbenes]

last year my mum was talking about buying solar panels because they will pay back in ten years, I said mum, forget that, and spend the money on holidays, you might not be here in ten years so what's the point

Milan

[fiisch]

It is and you are probably stuffed. They are quick and dirty with low margins so doubt they will be bucking process for anyone so I'd say you've got your answer.

Dunno what your family is like but in my experience and listening to others, when dealing with older parents, pushing what you want on them rarely works. In fact it has the opposite effect and causes them to be more belligerent. Offering a sport model Skoda on a parent that wants a dead basic Audi is a pretty bad move IMO. You need to listen to what he wants and help guide him, not drop something stupid on him he doesn't understand or want. It's his car, what has your choice on cars got to do with him?

As in, we've both had Octavia vRS' before... He's from a time when having the Mondeo GLX vs the LX was a statement to the neighbours, if you got the Mondeo Ghia then you were really ballin'. So he's a bit sniffy about the badge i.e.: "if it's an Octavia, then it has to be the vRS".

But a moot point as I don't think he'll consider a used car (which would probably be the most sensible option in his position).

[fiisch]

There is sod all difference between Audi / Skoda it's just the interior will potentially be slightly cheaper (depending on model). Go to the top end Seat / VW / Skoda model and the interior will be better than most Audis..

As for only selling to a company - that's going to be a warranty issue. Company means business to business sale with no implied warranty which would be the case if the lease company sold it to an individual...

Ahhh that makes sense...! So if he is hell-bent on keeping, I'd need to chat with my accountant whether it'd be reasonable/feasible to use my company for an in-out transaction.

Agreed on the VAG hierarchy - was surprised to see Skoda switchgear in a £200k Porsche 911 Turbo S..! (I would take the Porsche though).

[WTFH]

I think that depends on the contract you pick. Most of them offer multiple options. PCP, Hire purchase and PCH. PCH doesn't give you the option to buy.
Not sure about 3rd parties as it's often hard to find out which option it is, HP, PCP etc.

I was sure I had read that VWFS were prepared to talk about buying after PCH, but have just read on the source of all motoring truth that they now don't...

You (at least, the person leasing the car) can't buy it because of the tax treatment of leases. However some will sell to another person (even your partner).

Some firms have disposal arrangements in place and will be contracted to send them all their cars. VWFS, for example, sell through a 3rd party company.

[northernladuk]

Is it leased through VW Finance or some other leasing company?
VWF normally will sell to the customer at the end of the lease (not before), but if it's through a 3rd party, then it's up to that company.

I think that depends on the contract you pick. Most of them offer multiple options. PCP, Hire purchase and PCH. PCH doesn't give you the option to buy.
Not sure about 3rd parties as it's often hard to find out which option it is, HP, PCP etc.

[WTFH]

Thanks for the replies.

The car is on a personal lease, not a PCP (nothing to do with my ltd co - leased in his own name). It's on a 3 + 36 month jobbie, no balloon payment at the end etc., on the understanding you hand the car back and presumably lease another.

He's asked about buying it, and they're claiming they can only sell it to a company with a company number (which sounds odd to me, but apparently this is what he's been told). I do know there is no "right" to buy a lease car at the end of the term, so ultimately it's up to the lease company's discretion I suppose.

Is it leased through VW Finance or some other leasing company?
VWF normally will sell to the customer at the end of the lease (not before), but if it's through a 3rd party, then it's up to that company.

[northernladuk]

The car is on a personal lease, not a PCP (nothing to do with my ltd co - leased in his own name). It's on a 3 + 36 month jobbie, no balloon payment at the end etc., on the understanding you hand the car back and presumably lease another.

He's asked about buying it, and they're claiming they can only sell it to a company with a company number (which sounds odd to me, but apparently this is what he's been told). I do know there is no "right" to buy a lease car at the end of the term, so ultimately it's up to the lease company's discretion I suppose.

It is and you are probably stuffed. They are quick and dirty with low margins so doubt they will be bucking process for anyone so I'd say you've got your answer.

Re.: Octavia vRS - we like Skodas.

He loves VAG, but ideally could do with a bit of a bigger car - vRS has more toys/nicer looker so takes the sting out of dropping down the VAG hierarchy (we've both owned them before).

Dunno what your family is like but in my experience and listening to others, when dealing with older parents, pushing what you want on them rarely works. In fact it has the opposite effect and causes them to be more belligerent. Offering a sport model Skoda on a parent that wants a dead basic Audi is a pretty bad move IMO. You need to listen to what he wants and help guide him, not drop something stupid on him he doesn't understand or want. It's his car, what has your choice on cars got to do with him?

[eek]

Thanks for the replies.

The car is on a personal lease, not a PCP (nothing to do with my ltd co - leased in his own name). It's on a 3 + 36 month jobbie, no balloon payment at the end etc., on the understanding you hand the car back and presumably lease another.

He's asked about buying it, and they're claiming they can only sell it to a company with a company number (which sounds odd to me, but apparently this is what he's been told). I do know there is no "right" to buy a lease car at the end of the term, so ultimately it's up to the lease company's discretion I suppose.

Re.: Octavia vRS - we like Skodas.

He loves VAG, but ideally could do with a bit of a bigger car - vRS has more toys/nicer looker so takes the sting out of dropping down the VAG hierarchy (we've both owned them before).

There is sod all difference between Audi / Skoda it's just the interior will potentially be slightly cheaper (depending on model). Go to the top end Seat / VW / Skoda model and the interior will be better than most Audis..

As for only selling to a company - that's going to be a warranty issue. Company means business to business sale with no implied warranty which would be the case if the lease company sold it to an individual...

[fiisch]

Thanks for the replies.

The car is on a personal lease, not a PCP (nothing to do with my ltd co - leased in his own name). It's on a 3 + 36 month jobbie, no balloon payment at the end etc., on the understanding you hand the car back and presumably lease another.

He's asked about buying it, and they're claiming they can only sell it to a company with a company number (which sounds odd to me, but apparently this is what he's been told). I do know there is no "right" to buy a lease car at the end of the term, so ultimately it's up to the lease company's discretion I suppose.

Re.: Octavia vRS - we like Skodas.

He loves VAG, but ideally could do with a bit of a bigger car - vRS has more toys/nicer looker so takes the sting out of dropping down the VAG hierarchy (we've both owned them before).

[vetran]

1. Form a company with paid-up shares equivalent to the cost of the car;
2. Company buys car with money from shares;
3. Dissolve company, distributing assets to shareholder.

There's a bit of paperwork and some additional costs around company formation, but there shouldn't be much interest from Hector given that the company hasn't done anything that generates either profits or losses and the shareholder ends up essentially back where they started but with less cash and more car

HMRC would obviously view it as a "vehicle" to avoid vehicle tax?