Lease Cars/Company cars yes or no?

By : Administrator
Published 14th July 2011 |
Read latest comment - 17th July 2011

This is a subject I get completely confused with.

Looking to replace my 4x4 early next year. Obviously its a capital outlay, so looking at all the options, and looking at revisiting lease options. I leased a car a few years ago, and at the time, the accountant advised me it was more cost effective to buy the next car myself. Didn't really understand, but nodded and agreed.

So have any of the rules changed, or does anyone else do a business lease?

Just getting a feel for what everyone else does? Do you business lease, personal lease or buy it yourself?

If you business lease, is it ok to park the car at home, as I remember being told before the car is classed as a pool car so legally should only be parked at the office.

Any company recommendations? Plus can you haggle, like when you buy a new car, or is the price set in stone?

So many questions, all very confusing

Steve Richardson
Gaffer of My Local Services
My Local Services | Me on LinkedIn
Comments
forum avatarOnlineTileShop
14th July 2011 1:43 PM
I have looked into this but it does have so many down sides, I personally would rather buy my car even if its not a brand new one

forum avatarsiuwu
15th July 2011 7:27 PM
Hi,
we always using lease cars. first of all you can claim the vat , petrol , running cost etc.. back. And mostly its because you always get a new car and dont need to worry about service if you are doing a lot of miles. To us its the best option.

if you are VAT registered then you can claim back 50% of the VAT on the rental element - whilst if you buy the VAT is blocked. (new cars have 20% VAT on their price).

Also it depends on the vehicle CO2 emissions.

I have been looking at the Nissan Leaf - its zero emission so zero P11d benefit.

If I buy one I get:-

* Tax deduction on the company - so less corporation tax to pay
* No Benefit in kind
* 50% of the VAT back if I use a lease.

So in this scenario its a no brainer to buy on a lease and in the company name.

But If I bought a 4*4 it would be the other way around cheaper to have as a personal asset.

highlandspring

So in this scenario its a no brainer to buy on a lease and in the company name.

Assume you are ok to have the vehicle based at home, so it's not classed as a pool car? This is the bit where I got confused before!

Going to get hammered on the emissions though, 3 Litre 4x4 So prob going to have to run some scenarios past the bean counters.

Just curious to see what everyone else did.

Steve Richardson
Gaffer of My Local Services
My Local Services | Me on LinkedIn

Well in the nissan leaf example the BIK is

highlandspring

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