buying your lease car - advice please
Discussion
S8QUATTRO said:
Has anyone bought their lease car at the end the term?
Been offered a colleagues at a decent price but with the added vat its about the market price so not exactly a great deal
If anyone has bough their lease car, were you charged VAT?
Is it a commercial vehicle ? If so I cannot help as VAT has its own rules and whether or not you can claim any back I wouldn't know about.Been offered a colleagues at a decent price but with the added vat its about the market price so not exactly a great deal
If anyone has bough their lease car, were you charged VAT?
But I have bought cars at the end of lease deals but only if it was a car i really wanted to keep or the payout was less than market value.
I believe part of the reason for the 'good deals' on leases is that the VAT is charged on the payments rather than the car itself, so some more VAT needs paying once it goes on the market as a used car.
Also, of course the lease company is going to sell you the car at the market price. They aren't a charity who will sell you a cheap motor out of the kindness of their heart.
Also, of course the lease company is going to sell you the car at the market price. They aren't a charity who will sell you a cheap motor out of the kindness of their heart.
Yes and no to this.
I basically bought my company car off the lease company VWFS when it was due to go back. So was never "my lease" to start with.
If it is with VW, then you can get a price online. Up to 3 months before the lease is due to end.
I played the system, and noticed that every time I got a quote (that lasted for 7 days) it got cheaper and cheaper the further it got to the end of the deal.
In the end got a price day before due. then got value of We buy any car, and it was £2k less than they would offer, and lot less than forecourt prices. So bought it.
They asked for mileage, which I was honest about, but no one ever came and inspected it.
As for VAT it was charged.
So the price I was quoted was £11k for a 2014 Golf GTD. When I got the invoice it was £11k including Vat.
I basically bought my company car off the lease company VWFS when it was due to go back. So was never "my lease" to start with.
If it is with VW, then you can get a price online. Up to 3 months before the lease is due to end.
I played the system, and noticed that every time I got a quote (that lasted for 7 days) it got cheaper and cheaper the further it got to the end of the deal.
In the end got a price day before due. then got value of We buy any car, and it was £2k less than they would offer, and lot less than forecourt prices. So bought it.
They asked for mileage, which I was honest about, but no one ever came and inspected it.
As for VAT it was charged.
So the price I was quoted was £11k for a 2014 Golf GTD. When I got the invoice it was £11k including Vat.
Edited by joestifff on Tuesday 16th January 11:33
If the VAT was reclaimed when the vehicle was purchased - as it would be by a lease company, then VAT must be charged at 20% when the asset is sold on.
If you were buying the vehicle to lease out or as a company vehicle with no personal use (eg. a pool car), you could claim the VAT back (assuming you are VAT registered) but again, you'd have to charge VAT when you sold it.
Dealers like VAT qualifying stock because they can claim the VAT back immediately on purchase so the cash flow impact is lower. Buy right at the end of the VAT quarter, and sell quickly and HMRC are assisting your cashflow for nearly 3 months.
If you were buying the vehicle to lease out or as a company vehicle with no personal use (eg. a pool car), you could claim the VAT back (assuming you are VAT registered) but again, you'd have to charge VAT when you sold it.
Dealers like VAT qualifying stock because they can claim the VAT back immediately on purchase so the cash flow impact is lower. Buy right at the end of the VAT quarter, and sell quickly and HMRC are assisting your cashflow for nearly 3 months.
Edited by quinny100 on Tuesday 16th January 12:28
quinny100 said:
If the VAT was reclaimed when the vehicle was purchased - as it would be by a lease company, then VAT must be charged at 20% when the asset is sold on.
If you were buying the vehicle to lease out or as a company vehicle with no personal use (eg. a pool car), you could claim the VAT back (assuming you are VAT registered) but again, you'd have to charge VAT when you sold it.
Dealers like VAT qualifying stock because they can claim the VAT back immediately on purchase so the cash flow impact is lower. Buy right at the end of the VAT quarter, and sell quickly and HMRC are assisting your cashflow for nearly 3 months.
spot on, that info helps. Thank youIf you were buying the vehicle to lease out or as a company vehicle with no personal use (eg. a pool car), you could claim the VAT back (assuming you are VAT registered) but again, you'd have to charge VAT when you sold it.
Dealers like VAT qualifying stock because they can claim the VAT back immediately on purchase so the cash flow impact is lower. Buy right at the end of the VAT quarter, and sell quickly and HMRC are assisting your cashflow for nearly 3 months.
Edited by quinny100 on Tuesday 16th January 12:28
Just had a quote from VWFS to buy our A4 Avant 1.4TFSI after the lease ends in April.
They want £17646. So it's depreciated £11854 from list or 40.1% over 2 years & 20k miles (list price of £29,500).
The lease cost £5759 total (£270 worth of road tax included) so they netted £5489. Would have needed a cash discount of £6365 to get to the same financial numbers if bought, plus you'd then have the hassle of selling. God I love lease deals.
In any case, I think their quote to buy is on the cheeky side as Car Giant are selling an identical model at £18,000 which means it went through the auction house at around £16,500 plus needed transporting, inspecting, appraising etc. I'm surprised they don't offer keener deals to keep the car. Guess they want you in a new lease deal, keep the numbers up!
They want £17646. So it's depreciated £11854 from list or 40.1% over 2 years & 20k miles (list price of £29,500).
The lease cost £5759 total (£270 worth of road tax included) so they netted £5489. Would have needed a cash discount of £6365 to get to the same financial numbers if bought, plus you'd then have the hassle of selling. God I love lease deals.
In any case, I think their quote to buy is on the cheeky side as Car Giant are selling an identical model at £18,000 which means it went through the auction house at around £16,500 plus needed transporting, inspecting, appraising etc. I'm surprised they don't offer keener deals to keep the car. Guess they want you in a new lease deal, keep the numbers up!
Does anyone know if Santander / Volvo Finance will allow you to buy an ex lease car at the end of the PCH? Got one due to end in 2 months, and not quite ready to pull the trigger on a new lease, so thought i'd see if they want to sell me this one (or a family member).
I've emailed them, but they took about 4 weeks to respond to my last correspondence to them and haven't answered the phone to me over the past week.
I've emailed them, but they took about 4 weeks to respond to my last correspondence to them and haven't answered the phone to me over the past week.
Edited by stut4 on Thursday 15th October 19:24
stut4 said:
Does anyone know if Santander / Volvo Finance will allow you to buy an ex lease car at the end of the PCH? Got one due to end in 2 months, and not quite ready to pull the trigger on a new lease, so thought i'd see if they want to sell me this one (or a family member).
I've emailed them, but they took about 4 weeks to respond to my last correspondence to them and haven't answered the phone to me over the past week.
I have heard back. As of Oct 2020, Santander / Volvo Finance do not allow hirers or families to buy their ex lease vehicles. I thought they might consider it as heard the auction and second hand market is very slow so thought they would be keen to offload the cars before they go to auction.I've emailed them, but they took about 4 weeks to respond to my last correspondence to them and haven't answered the phone to me over the past week.
Edited by stut4 on Thursday 15th October 19:24
WBAC and autotrader were both massively lower than i thought would be the case. 21 month old V40 t2 with 12k miles. Going for £10-11k. I was expecting a couple thousand more than that and to be honest if they had come back with a £12k price i'd probably have gone for it as i know the car well - no hidden issues. oh well, their loss.Going to try and persuade the mrs to get a fun car for a couple of years now.
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