Best lease car deals available?

[-Z-]

Blown2CV said:

ArsE92 said:

Thankyou4calling said:

m3sye said:

Nope 6+23

I call custard!

That doesn't sound like a deal the public were ever offered.

£360 inc vat for an M3 with 6 months upfront. I don't believe it.

Indeed

And is he driving this car?

It was an astounding deal, but it was +VAT.

It was for the LE500 edition as well.

I missed out by one day on getting one turned down the same deal on the convertible.

[-Z-]

Blown2CV said:

N88 said:

Blown2CV said:

N88 said:

AGK said:

VW have always had good prices for leasing these but you have to prove you have a business.

Once you add BIK it isn't that attractive.

Except you wouldn't provide it to the director as a company car, it would just be a £165 payment to their loan account.

Also wouldn't apply to the self employed.

Edited by N88 on Monday 29th September 12:52

it comes up i'd say every month, some tard thinks they can play the tax/business lease system. Presumably you think you're literally the first person to think of that, yes?

I've not read all the responses so not sure if it's already been covered. We have several clients who stick their lease payments straight to their loan account. You're not getting the benefit of claiming back the VAT but it still tends to work out better than a personal lease deal. There was a case that went to court with HMRC a few months back and it was deemed a legitimate way of doing things, so we're happy to treat them this way based on that. If anyone want's the link I'll dig it out.

ps. Try being a little less aggressive with your posts in future

Please do post the link. I'd love to know why if the car is owned by the company but paid for by the user that there aren't wider tax implications than just VAT. Presumably the only way the company would agree to this is if the user in question owns the company as there's no way they'd take on the financial responsibility for the contract otherwise. The reason for my response is because, as I said, it comes up very regularly that some bright spark thinks they can play the system. Maybe you are the only one in hundreds, in which case well done, however as far as I am concerned it's unlikely and it's not really what the thread is about.

I think it's clear now that business leasing is pretty straightforward for anyone that isn't a Ltd or PLC. No BIK etc because the owner is the company.

Even simpler for me as my industry is VAT exempt!

[Welshbeef]

Taking one of these and putting through the company

1. Employers NI
2. benefit in Kind

Has anyone done the maths to calculate if its cheaper than a personal lease? Given its only +Vat difference between the two quotes (unless business only offers) then Ers NI is 13.8% so your playing with 6.2% - even if there are scenarios whereby its cheaper clearly it would not be significant £ wise. All that hassle for very little seems like busy fools scenario to me.

[Welshbeef]

Taking one of these and putting through the company

1. Employers NI
2. benefit in Kind

Has anyone done the maths to calculate if its cheaper than a personal lease? Given its only +Vat difference between the two quotes (unless business only offers) then Ers NI is 13.8% so your playing with 6.2% - even if there are scenarios whereby its cheaper clearly it would not be significant £ wise. All that hassle for very little seems like busy fools scenario to me.

[theboss]

Welshbeef said:

Taking one of these and putting through the company

1. Employers NI
2. benefit in Kind

Has anyone done the maths to calculate if its cheaper than a personal lease? Given its only +Vat difference between the two quotes (unless business only offers) then Ers NI is 13.8% so your playing with 6.2% - even if there are scenarios whereby its cheaper clearly it would not be significant £ wise. All that hassle for very little seems like busy fools scenario to me.

Saying the difference must be 20% VAT minus 13.8% is wrong I'm afraid - this assumes that:

(1) the business reclaims the VAT - whereas it can normally only reclaim half of it. Many small companies operate flat rate VAT so can't reclaim any of it
(2) employers NI is due on the net value of the lease payment - whereas it is due on the BIK value which, particuarly for the 'mega deals' on performance cars, is likely to exceed the lease cost, in some cases several-fold.

On the other hand, as you say some of the best deals are business only or the personal equivalent amounts to much more than simply +VAT which is what makes the business option appear compelling disregarding the potentially ruinous BIK liability.

Speaking for myself, with a small limited company, not on the flat rate, company office at home (no legitimate prospect of a pool / business-use-only car), taxed at 40% on additional income / BIK, there is simply no case for ever putting a car through the business. Doing the lease personally, swallowing any extra cost and VAT in the process, then claiming at 0.45/0.25 per mile free of tax/NI, is generally better. There may be some exceptions for very small/eco cars with minimal BIK rate / low list price but then you're talking lease costs similar to that of an expensive mobile phone tarrif so any savings are chicken feed anyway.

[MrOnTheRopes]

ArsE92 said:

Except it's a 9+23.

Sorry but all these 'cracking deals' aren't really cracking without the full details.

Most people don't mind paying more initially. 9+ are very popular.
Anyway, you still pay the same over the term! (Pay 3+ you pay more monthly to make up)

[VX Foxy]

Really? So the lease companies are doing it as a benefit to their customers? Humm...

[crosseyedlion]

MrOnTheRopes said:

ArsE92 said:

Except it's a 9+23.

Sorry but all these 'cracking deals' aren't really cracking without the full details.

Most people don't mind paying more initially. 9+ are very popular.
Anyway, you still pay the same over the term! (Pay 3+ you pay more monthly to make up)

Well many also treat money in the bank as security, personally I like to maintain as large a cash buffer as possible (Contractor) by paying monthly with a minimal initial outlay. Especially if there is no financial penalty in doing so vs a larger deposit.

But, alas. Most of the public don't think that way. When my mum got her C-Class, she was over the moon that she managed to negotiate the monthly payments under 200 a month by 'just' putting an additional 3k into the deposit (Pcp deal).

[Dog Star]

Whenever I look at these I always look at the 3+23; paying more up front makes no sense whatsover. Better off in your bank than the finance cos.

[m3sye]

Thankyou4calling said:

I call custard!

That doesn't sound like a deal the public were ever offered.

£360 inc vat for an M3 with 6 months upfront. I don't believe it.

Not really going to make this up, yes he had it until a few months ago, couldn't handle it so ended up paying to get out 12 months after having it to an A5 !
It was in offer for literally a week or 2 , purely the Monte Carlo ltd ed

[burwoodman]

m3sye said:

Not really going to make this up, yes he had it until a few months ago, couldn't handle it so ended up paying to get out 12 months after having it to an A5 !
It was in offer for literally a week or 2 , purely the Monte Carlo ltd ed

lol- they have NEVER been £300+vat.

[funkyrobot]

Sorry, bit late to this thread.

I have a quick questions. Is a personal lease simply that (I.E. an individual with no company ties can lease)? Or is there more to it than that?

My commute has recently got longer and I'm running an older car that is quite thirsty on the petrol. Was just thinking about leasing something more economical instead.

Thanks all.

[burwoodman]

funkyrobot said:

Sorry, bit late to this thread.

I have a quick questions. Is a personal lease simply that (I.E. an individual with no company ties can lease)? Or is there more to it than that?

My commute has recently got longer and I'm running an older car that is quite thirsty on the petrol. Was just thinking about leasing something more economical instead.

Thanks all.

Correct. Most leasing companies will deal with both company/private.

[funkyrobot]

burwoodman said:

Correct. Most leasing companies will deal with both company/private.

Thanks.

Just looking for something affordable now as I'll be doing around 15k miles a year.

Does it make sense to go for the higher rate, or just pay the extra charge per mile if you take a lease deal with less mileage, for instance? Thanks.

[BigBen]

crosseyedlion said:

But, alas. Most of the public don't think that way. When my mum got her C-Class, she was over the moon that she managed to negotiate the monthly payments under 200 a month by 'just' putting an additional 3k into the deposit (Pcp deal).

This was clear when I recently helped my mum lease an SLK. The salesman kept going on about the monthly payments and could not seem to grasp that all I was doing was adding the deposit + 36 times the monthly to get a total cost for comparison across the different deals. Actually that could mean that salesmen don't think like that....

[Blown2CV]

-Z- said:

Blown2CV said:

N88 said:

Blown2CV said:

N88 said:

AGK said:

VW have always had good prices for leasing these but you have to prove you have a business.

Once you add BIK it isn't that attractive.

Except you wouldn't provide it to the director as a company car, it would just be a £165 payment to their loan account.

Also wouldn't apply to the self employed.

Edited by N88 on Monday 29th September 12:52

it comes up i'd say every month, some tard thinks they can play the tax/business lease system. Presumably you think you're literally the first person to think of that, yes?

I've not read all the responses so not sure if it's already been covered. We have several clients who stick their lease payments straight to their loan account. You're not getting the benefit of claiming back the VAT but it still tends to work out better than a personal lease deal. There was a case that went to court with HMRC a few months back and it was deemed a legitimate way of doing things, so we're happy to treat them this way based on that. If anyone want's the link I'll dig it out.

ps. Try being a little less aggressive with your posts in future

Please do post the link. I'd love to know why if the car is owned by the company but paid for by the user that there aren't wider tax implications than just VAT. Presumably the only way the company would agree to this is if the user in question owns the company as there's no way they'd take on the financial responsibility for the contract otherwise. The reason for my response is because, as I said, it comes up very regularly that some bright spark thinks they can play the system. Maybe you are the only one in hundreds, in which case well done, however as far as I am concerned it's unlikely and it's not really what the thread is about.

I think it's clear now that business leasing is pretty straightforward for anyone that isn't a Ltd or PLC. No BIK etc because the owner is the company.

Even simpler for me as my industry is VAT exempt!

except there is no 'business' because it isn't a legal entity if not ltd or plc

[Blown2CV]

BigBen said:

crosseyedlion said:

But, alas. Most of the public don't think that way. When my mum got her C-Class, she was over the moon that she managed to negotiate the monthly payments under 200 a month by 'just' putting an additional 3k into the deposit (Pcp deal).

This was clear when I recently helped my mum lease an SLK. The salesman kept going on about the monthly payments and could not seem to grasp that all I was doing was adding the deposit + 36 times the monthly to get a total cost for comparison across the different deals. Actually that could mean that salesmen don't think like that....

it's a selling technique, intended to draw you further away from the TCO and towards the fact that you can afford it month to month. It is savvy, as it works with most people, however it's also sharpish practice. There are rules against doing that in the US now I think. In any case the sales guy is prob just doing as he is told.

[gizlaroc]

Blown2CV said:

except there is no 'business' because it isn't a legal entity if not ltd or plc

What do you mean by that?

maybe I have missed your point, but you don't have to be limited to be a business and get a business lease deal.

Mate has just got a new car through a business lease and he is not limited, he and his brother just make timber frame buildings.
There was no issue with him getting a business lease.

[Blown2CV]

funkyrobot said:

burwoodman said:

Correct. Most leasing companies will deal with both company/private.

Thanks.

Just looking for something affordable now as I'll be doing around 15k miles a year.

Does it make sense to go for the higher rate, or just pay the extra charge per mile if you take a lease deal with less mileage, for instance? Thanks.

if the excess mileage is low and your miles are variable then go low on the contract miles. Generally if the excess charge is fair it will only take you up to what you would have paid had you specified the mileage in the contract that you ended up accruing anyway.

[funkyrobot]

Blown2CV said:

if the excess mileage is low and your miles are variable then go low on the contract miles. Generally if the excess charge is fair it will only take you up to what you would have paid had you specified the mileage in the contract that you ended up accruing anyway.

Thanks.