Financing a car through the business

[BeeBopp]

Hi

I've got a car on order from BWW main dealer and I applied for a business lease through BMW finance, which was declined. I was surprised. Looking to locate a broker who can help me finance the car that arrives in August. I could do it as a personal deal but as the car is an EV.

Business t/o was low millions in FY20 & FY21. Posted large losses those years but mostly 'paper' losses - business has remained cash +ve for for those years. FY22 (closes next month) will post a decent size profit again, and FY23 will also be fine.

Anyone got any leads or suggestions of folks to talk to? I'd be happy to give a PG to underwrite the deal.

BeeBop

Edited by BeeBopp on Wednesday 15th June 16:13

[Eric Mc]

Is the business a limited company?

Have you checked the tax Benefit in Kind implications?

[BeeBopp]

Yes its a limited company. As an EV, the BIK is pretty marginal.

[Al Gorithum]

DM me if you want to be hooked up with a decent broker.

[Eric Mc]

BeeBopp said:

Yes its a limited company. As an EV, the BIK is pretty marginal.

For the moment.

[BeeBopp]

Is the view in the market that the position is likely to change in the next 3 years? Grateful for any insight - it might influence my decision on whether to purchase personally or via the company.

Cheers

[MaxFromage]

The BIK is 2% until 5th April 2025. We don't know what will happen from then, but I believe it's safe to say rates will increase given the loss to the Treasury from EVs.

[Al Gorithum]

Did you get my email BB?

[Eric Mc]

BeeBopp said:

Is the view in the market that the position is likely to change in the next 3 years? Grateful for any insight - it might influence my decision on whether to purchase personally or via the company.

Cheers

Government policy on the taxation of motor cars is liable to all sorts of fluctuations - generally based on what direction they want us to go and how badly in need of money the Exchequer is. My guess is that the current encouragement of electric car buying will eventually be withdrawn as more and more of us start using such vehicles. When that will be is hard to say - but it will happen.

[pquinn]

Eric Mc said:

My guess is that the current encouragement of electric car buying will eventually be withdrawn as more and more of us start using such vehicles. When that will be is hard to say - but it will happen.

Plug-in car grant scheme was closed to new orders on Tuesday so I can see a lot of things going shortly.

Don't need incentives when the market is already irreversibly shifting.

[Eric Mc]

Precisely.