Contract/lease Hire - anyone do this??

blacky · Post by **blacky** » Mon Nov 19, 2007 8:22 am

Just looking into various ways of having a car thro my business, and have been looking at Constract/lease Hire, seems to be loads of companies doing thsi, but was wondering if there is anything major to look out for etc???

duncan · Post by **duncan** » Mon Nov 19, 2007 8:27 am

I spent 7 years working for a car finance company - with Contract Hire or Lease you will pay vat on the rentals. Fine if you are VAT registered and can claim it back.

If you opted for contract purchase it would work out better for you in the end plus you would get the option to buy the vehicle for a pre-agreed residual price or hand it back if you dont feel it is worth that amount.

Either way I think the government has removed some of the tax benefits nowaways. You used to be able to offset all contract hire rentals against profit - not sure now. With contract purchase you could offset the interest paid against tax - again not 100% sure.

blacky · Post by **blacky** » Mon Nov 19, 2007 8:33 am

Yes, got the gen on the vat front on the Hire options, its 50% back if you se it for personal use as well, or 100% back if its commerical use only.

I looked briefly at Contract purchase, but need to look more in depth as to what teh tax implications are, think a call to the accountant is needed as I am not 100% up on all this stuff.

Once all thats sorted, it just a case of choosing which car....arrghhh :roll:

I do circa 15-20k a year, needs to be fun, but not too silly, and be reasonalble to run. Any ideas??

duncan · Post by **duncan** » Mon Nov 19, 2007 8:36 am

What about something like a VW CaddyVan

blacky · Post by **blacky** » Mon Nov 19, 2007 8:42 am

dynamix wrote:What about something like a VW CaddyVan

ermmm.....No :!:

Don't need a van really...

duncan · Post by **duncan** » Mon Nov 19, 2007 9:54 am

:lol:

ScoobieWRX · Post by **ScoobieWRX** » Mon Nov 19, 2007 10:37 am

Do what Bladey has just done. He's got himself a BMW 535d Sport Touring. Very nice bit of kit indeed, goes like the clappers and will retun 35-40mpg!!

I think he said he's getting it mapped too...utter nutter!!

Bladerider · Post by **Bladerider** » Mon Nov 19, 2007 11:01 am

DMS is your friend

Takes the limiter off for 170mph+ autobahnstorming
Peps up the 286bhp to 334bhp and torque to about 504lb/ft I think for 0-60 in around 5.6-5.9 seconds.

Should still return 41mpg average if you dont keep mashing the carpet all the time !!! I think they said their maximum mileage limit for PCP (contract purchase) was 28k/year for this vehicle so I wouldnt qualify, so I just bought it as a straight HP type arrangement as Leasing for me is dead money - I dont get an asset at the end of it, which is old fashioned but its just a personal preference.

If you have to buy a new one you best sit down as they easily reach 50grand once spec'd !!

One year old they are around 10k less than that, mine was 49 and change when new, but its a fairly high spec. For various reasons they are letting me have one thats 3 months old for a monster good deal so you never know what is available.

Hope this help.

J.

Bladerider · Post by **Bladerider** » Mon Nov 19, 2007 11:03 am

Oh,

And have a chat to your accountant about the way you use the vehicle. You can use a personal vehicle for business use an claim back a mileage allowance tax free - you'd be surprised how much money your car can earn you

J.

blacky · Post by **blacky** » Mon Nov 19, 2007 11:14 am

Cheers for the replies. I am at the moment using my personal vehicle and claiming mileage.

So, you are saying with a PCP then you can offset the vehicle value against tax. + you can own the car at the end, does this add up on teh value they say?