V unpleasant car HP deals via Ltd - why?
Discussion
I've had a few quotes for HP on 33% of the cost of an incoming car. Ideally wanted to put the loan through the business as its an EV for 95% business use and that has tax advantages. Just finding poor deals with awful terms on what is a low risk secured loan. Front loaded interest, balance of interest due on early settlement, 7.5% APR terms etc
Its become clear to me that getting a personal loan at 2.8% for £25k and pushing it through the business as a directors loan plus £12k from my savings (that earn virtually no interest) trump any deal at c7% APR with awful conditions; its saves money, adds flexibility and has only 1 months interest penalty.
Very disappointed as in putting in 66% equity on the car I get what I consider to be poor terms and value on a secured loan. Not even the corp tax offset on the interest comes near making anything offered by HP more attractive. Personal regulated deals aren't much better - I expected better rates on such a deposit and with interest rates being so low too. Ho hum 1st world stuff I guess
Its become clear to me that getting a personal loan at 2.8% for £25k and pushing it through the business as a directors loan plus £12k from my savings (that earn virtually no interest) trump any deal at c7% APR with awful conditions; its saves money, adds flexibility and has only 1 months interest penalty.
Very disappointed as in putting in 66% equity on the car I get what I consider to be poor terms and value on a secured loan. Not even the corp tax offset on the interest comes near making anything offered by HP more attractive. Personal regulated deals aren't much better - I expected better rates on such a deposit and with interest rates being so low too. Ho hum 1st world stuff I guess
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