Car leasing

[lktanning]

Hi guys,

I'm mobile and I need a new car, preferably on finance.

I was just wondering whether any of you had 'bought' a car on a business lease and if so can claim this on your tax return and would you say it is beneficial
Any help would be highly suggested!

Xxx

 

[lktanning]

***Highly appreciated!

 

[Steffcravencoco]

Ive looked into this too!!
Speak to your accountant. If you dont have one and do ur books urself ring hmrc they will tell u what percentage u can put thru ur books. How much fuel per mile etc.
Just a thought.. if youre mobile and do a lot of mileage check what deal you're getting. Certain leasing companies only allow a certain amount of miles. I.e 10k a year. Average car does 12k a year
Look at maintenance packs too! U may find really good xxxx

 

[lktanning]

I think I'm going to stick to a personal plan as I have a lot more flexibility, I'm not VAT registered so I will have to pay the VAT on the car. I think I'm just going to keep a mile diary and put it through the business that way xxx

 

[amys-beauty]

I have a car on finance. And I would never do it again. Nor recommend it, it is such a big burden on my life and after 4 long years in 10 months I would have paid it all off! Yes I have claimed some money back through hmrc but not much. In my opinion I would save up in future, my car isn't even worth a 3rd now of what I paid! Waste of money xx

 

[Spandangle]

I have a just add fuel deal with Peugeot and it's really nice knowing that one payment a month covers literally everything even down to the tax and breakdown (Except for fuel obviously. ..)

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[lktanning]

I've worked I a dealership in the past so I don't see finance options as a burden as I think it's a smart way to go if you do change your car every few years and I would rather have the safety of leaving £15,000 in the bank and pay it off monthly (providing it's a good interest rate) and to make sure if I have money for a rainy day I have - that way I can hand the car back if I struggle too much and I still have a nice lump of cash in the bank. Otherwise I buy the car and I'm stuck with it.

By the way, it does depend on your agreement, but you don't have to stick with a deal for X amount of years? After a certain time has passed you are free to part exchange it for another car providing it's worth what you owe or more! Just a thought so you don't feel stuck with an agreement you're not happy with.

I've had my car on a PCP plan for 3 years now and I love the fact that it's time to change and I can have a brand new one! Plus, being mobile it helps to know that I have a new car that I can fully rely on and if anything goes wrong I have a warranty but it is swings and roundabouts xxx

 

[amys-beauty]

I know you can pay it off sooner, which I have and it knocked off just under a grand. I know you can part exit it. But I'm just one of these people that like less things coming out of the bank and would to prefer to pay it all at once! The interest altogether was around 4 grand for a £14000 loan for 4.5 years.

This is just my experience and for me, never again, I'd rather save the interest money for something else! The just add fuel finances weren't around then n I would probs have gone for that. I'm just so happy to have finally paid it off xx

 

[Sweets2005]

I have a car on finance. And I would never do it again. Nor recommend it, it is such a big burden on my life and after 4 long years in 10 months I would have paid it all off! Yes I have claimed some money back through hmrc but not much. In my opinion I would save up in future, my car isn't even worth a 3rd now of what I paid! Waste of money xx

This is so interesting to me because here in the states, financing a car is a way of life! Seems no one bats an eye, some spending way more than they can afford! And everything is financed. Well I would recommend saving if you can, we pay cash for cars and it feels so good! Who cares if they aren't the nicest! Good luck

 

[rizz]

I went to the bank and got a personal loan to by my car... It means if anything happens and I can't keep up the payment I just sell the car and pay off the loan. My other half has a car on finance from the dealer and he doesn't have this option he has to pay every month then when he gets to halfway through the payment he can then just give it back or keep paying until the end. Hope that helps xx

 

[Dolci_Dolittle]

I went to the bank and got a personal loan to by my car... It means if anything happens and I can't keep up the payment I just sell the car and pay off the loan. My other half has a car on finance from the dealer and he doesn't have this option he has to pay every month then when he gets to halfway through the payment he can then just give it back or keep paying until the end. Hope that helps xx

That was the worst mistake we ever made with our last car. We couldnt get finance so had to get a loan and we were payin around £100 more than our mortgage each month until they deducted the ppi from it. Took it down a good bit but still like a second mortgage and for a 55plate peugeot 307 it wasnt worth it.

We've now got a nearly 3 yr old insignia and the finance repayments plus insurance are still less a month than the loan repayments for previous car.

X

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[lktanning]

It's swings and roundabouts for both sides. I personally think finance is a safe option, I can afford it & it means I get to drive around a lovely new reliable car. You have to remember HP/Lease deals only came about because businesses starting doing it because it was a way of saving money and that way depreciation of the car didn't get charged to there accounts as a lost asset.

I think it is down to personally preference but I wouldn't slate anyone for doing either way.

 

[misslady]

I've worked I a dealership in the past so I don't see finance options as a burden as I think it's a smart way to go if you do change your car every few years and I would rather have the safety of leaving £15,000 in the bank and pay it off monthly (providing it's a good interest rate) and to make sure if I have money for a rainy day I have - that way I can hand the car back if I struggle too much and I still have a nice lump of cash in the bank. Otherwise I buy the car and I'm stuck with it.

By the way, it does depend on your agreement, but you don't have to stick with a deal for X amount of years? After a certain time has passed you are free to part exchange it for another car providing it's worth what you owe or more! Just a thought so you don't feel stuck with an agreement you're not happy with.

I've had my car on a PCP plan for 3 years now and I love the fact that it's time to change and I can have a brand new one! Plus, being mobile it helps to know that I have a new car that I can fully rely on and if anything goes wrong I have a warranty but it is swings and roundabouts xxx

After a recent experience with a bereavement I have to warn you that you cannot just hand a car back. I know that you work in a dealership but I have experienced this first hand and would never finance a car ever again. When I went back to the dealership they refused to get involved - funny that as they probably had already spent their commission from the sale. I had to deal with a different department and the option was pay the outstanding balance or they'd take the payments already made off of the 3 year finance period.

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[lktanning]

Hi sorry misslady that you had a bad experience, the finance of the car isn't actually taken out with the dealership it's with a separate finance company, the dealership is the middle man. Once a car is sold sales execs have no say or control over your finance agreement they merely arrange it for you.

What I would say is you have definitely experienced bad customer service and a definite lack of empathy and for that reason I can see why you wouldn't return to them.

Also I think it's quite unfair to talk about commission in that way, when I worked for my dealership I was working 60 hours a week 12 hour days, working in rain or shine to arrange cars and clean the pitch outside, arranging impossible requests from customers to the best of my ability. And a lot of car salesmen get no thanks for it unfortunately because of the stereotype they have. My salary and the hours I worked meant that my wage equated to £4 before commission. And unless you are buying a Luxury car your salesperson isn't likely to be making that much commission off of your sale.

 

[lktanning]

Also, I wasn't asking whether I should take out finance. I was asking if a business lease was a good way to go about it, I didn't mean to spark a debate about the rights & wrongs of finance plans.

 

[Eyekandi]

Im in the process of this at min, I went in with a view to lease but I think im buying on finance. Im mobile too and heavily depend on a car so im biting bullet and going for finance as the car I like is no longer being leased by garage.
What worries me about leasing is if I scratch it but that was the only thing I worried about. Brand new car every 3 yrs seems lovely idea when your mobile.
I just claim 45p per mile rather thsn the other way which seemed complicated.
Im fed up of cars failing prematurely and ive had that worry over 2 cars this week so bring on a brand new one :lol:

 

[lktanning]

Eyekandi,

Don't worry about scratches too much 😊 when you swap the car after three years they literally just part exchange it. You only get charged for stuff like that if you hand it back to the finance company so I wouldn't worry too much. 😊

I hope you enjoy it, there's nothing better than driving round a shiny new car and having a play with it!

And it's sooooo nice to know it's very unlikely to break down on you xxx

 

[ElizabethAlex]

With leasing you do get charged for scratches, scuffed alloys, interior damage, etc etc, they usually send you a booklet which outlines what is "acceptable wear & tear" for the age of the car & the mileage it has done - I've had two lease cars now, I've not had to pay anything but my husband got stung for replacement car mat, scuffed alloy & of course going over his mileage. Each make of car will have different allowances aswell, his was Audi. Hairline scratches & dints from other doors were all pretty much acceptable xx

 

[lktanning]

Sorry I didn't explain fully. With business leasing yes you will get charged as you will be handing it over the finance company after a certain year.

With a PCP deal (1. Keep the car and pay the final balance, 2. Hand it back to the finance company, 3. Part exchange it) if your outstanding finance on the car is more than what the cars worth that sometimes a dealership will advise you to hand it back in order to purchase a new car.

It's can be more complicated and obviously different companies have different allowances and regulations and what not. I was describing my experience with my current car.

For example, my current car is worth £6500 (Trade) and I owe £6000. Meaning I have £500 towards a deposit on a new car, the dealership with then pay the balance of the finance off on my current car and go on to sell it for a profit themselves. But if it wasn't worth £6000 it's unlikely they would P/X it xx

 

[misslady]

Also, I wasn't asking whether I should take out finance. I was asking if a business lease was a good way to go about it, I didn't mean to spark a debate about the rights & wrongs of finance plans.

Sorry, I wasn't trying to start a debate either. But i wanted to point out that if you are struggling you don't simply get to hand the car back as stated in a previous post.

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