Vehicle Leasing

[rimfire4969]

I am at a point where i want to change my VW Touran 7 seater on a 05 plate for a newer one.

 

At the moment the car is privately owned by my wife.

 

I can get a brand new one on lease for about £300 plus the VAT with a payment of about £1300 up front on a 2 year contract, i can do this through my company so can claim back the VAT.

 

To buy a 07 plate Touran will cost about £13-14000, i should get about £9000 for my old one, so it will cost me about £5000.00

 

What are the plus point to leasing, can i put it all through my business?

[al4x]

so you're going to pay 8.5K over two years and give it back, any dents etc will be charged on top.

 

Your scenario you've got 14K tied up in it but will probably get at least half that back at the end of two years probably more, IMHO if you've got the cash pay outright. We've leased a lot of vehicles in the past and it never really adds up if you have the money to go out and buy them

[rimfire4969]

so you're going to pay 8.5K over two years and give it back, any dents etc will be charged on top.

 

Your scenario you've got 14K tied up in it but will probably get at least half that back at the end of two years probably more, IMHO if you've got the cash pay outright. We've leased a lot of vehicles in the past and it never really adds up if you have the money to go out and buy them

 

But on a plus side i can stick £9000.00 in my bank and let the company pay for it.

[pegasus bridge]

if you have a small one off requirement = shop around, there are some good one off deals to be had, lots of people dont like leasing and prefer 'ownership', i can understand this perspective when it comes to property, because it generally increases in value - vehicles do not! so go at the decision from the perspective that you want it to cost you the least amount over your anticipated holding period. unless you are a very heavy user (mileage or condition) leasing will generally be the better option -

 

the damage issue is often perceived as painful - but you are allowed 'wear and tear', and this is clearly defined. if you owned the vehicle - you would also pay for damage in real terms (ie - your car would be worth less with damage on).

[joeainscow]

You have to be very carefull what you claim through your company. We have a few on our companies books. Insurance wise its ok and so is fuel but servicing and MOT we have to pay out of our own wallet. Thats on the company cars. On the works ones such as the hilux's everything can be claimed through the company. Just be very carefull and i'd recommend you check with your accountants first instead of other peoples experiences.

 

Joe

[joeainscow]

Just a quick addition we always buy ex demo's. You can still claim the VAT back on them and they're normally a thousand or so pounds cheeper. I'd stay away from leasing. Also since the touran isn't classed as "works or agricultural" you'd only be able to claim half the VAT back.

 

 

Joe

[al4x]

surely its even more iffy if the leasing goes through the company and you pay servicing privately?

[joeainscow]

surely its even more iffy if the leasing goes through the company and you pay servicing privately?

 

I know it's fine for it to be bought outright by a company and the bills thereafter paid by an individual. In regards to leasing i assume it's still ok if it's classed as a company car and in your contract. Tbh though i've never dealt with leasing due to you only being able to claim half the VAT on non commercial cars.

 

 

Joe