gunslinger757
Well-known member
I'm thinking of leasing a new car and was wondering if it was better to go contact hire or personal lease and claim milage etc. I'm self employed but not vat registered. Any thoughts.
A car like that would be expensive if it went down as a company vehicle unless you were banging high miles on it. Don't go by anything I say but I reckoned it's better to buy.
The thing is Al. As i understsnd it if you buy a vechile then obviously it will deprecate. & on your books as a company assest will only take a% over 3 years but will not fully be ofset againsr tax...as a company assest when you sell it the money from the sale has to go back into the company coffers and so is liable for taxing again bit of a tripple wammie just to say you own it...if however you have to lose money or give it to the taxman then a quick buy often allows u to write that tax off....i surgest u speak to your accountant he'll give u the pros & cons...
However with a lease hire of say a nissan navarra as both a commercial vech & lease hire than the full cost of the lease incl ur fuel & running costs are immediatley offset 100%..so in essance the tax man gets to pay for you to drive around in a nice new pick up. That should keep the smile on ur face
If you buy it you'll still own it after 3 years and it'll cost roughly the same payments wise as leaseing one which you wont own,as for offsetting against your tax,that's fine if your going to be showing profit,but there's much more plant that can used for that purpose,and you still wont own it.
I think i see where your coming from ...however in my mind set why would you want to own something that has depreciated so much anyway.its not a assest such like ur materials which will earn u profit...its not an investment- its just a vehicle.so for the same money i'd rather have drive around in a new one every few years but with no financial loss.
And I can see your view SP,but to my mind after 3yrs you'll still have an asset worth around 10k to weigh off your next motor,i think i'm right in saying that the 1st years 100% tax relief,the second year is 50% and the third is 25%,then go and get your next motor and the cycle starts again,there might not be much in it,maybe better tax can clarify which is the best option?:wondering:
been doing some digging and I'm on the same wavelength as you. I can spend about the same, 12,000 leasing one for 2 years or buying one, but at least at the end of the 2 years I can weigh it in against a new one. with the lease option, I've spent 12, 000 and got nothing to show for it.