Used Tesla Finance

[Labradorofperception]

I'm looking at a used Tesla, from Tesla and trying to explore other finance houses.

Problem is, the usual suspects such as Santander etc will not finance wholly electric vehicles.

I'm using a car allowance, so want to limit the deposit, but don't mind if the monthly is punchy.

HP from Tesla requires a £10k deposit - I'd rather put that into an AC 2 Litre...

I guess I'm opening myself up the car finance flamers but the man maths work when I add back my allowance, mileage rate paid on 20,000 miles a year and one of those traffic light air fresheners.

Thanks

[alorotom]

No idea but im surprised at this issue tbh and marginally concerned as I would like a Tesla at some point in the next year or so!

[Witchfinder]

Tesla are all about selling you a factory order car or a new one they have in stock. They just don't have the same type of dealer network that other franchises have.

I've been working out how I can get one after falling in love on a test drive last week, but I can't seem to make even man-maths work. If anyone knows the best way to finance a Tesla I'd be interested too.

[manracer]

My accountant says that as I have a limited company I would be silly not to purchase it through that, given the 1st year CT write off.

[jjwilde]

They sell every car they build and can't meet demand so they just don't care at the moment. They actually put their finance prices up recently too.

Probably the only cheap way is a low interest bank loan.... or if you live in Scotland you can get an interest free loan from the Scottish government for an electric car.

[oop north]

manracer said:

My accountant says that as I have a limited company I would be silly not to purchase it through that, given the 1st year CT write off.

I am not convinced about this - and I am an accountant with a limited company! The benefit is only going to last as long as you keep the car as you then have to pay corporation tax on the whole proceeds from the vehicle resale / trade in. So you temporarily save 19% of the depreciation (tho drop to 17% CT rate will give a margin) - your saving is on the borrowing cost (though you have to finance that in full from purchase date until you make your next corporation tax payment so a deferred saving - saving is interest rate x 19% of depreciation x period of use - maybe 3%-4%? But if you do contract hire you can get half the VAT back which gives a permanent saving of one twelfth of the contract hire cost. Or 8.3%

I haven’t done the maths in detail but I do think the benefit of corporation tax relief is overstated - some people only think about the immediate “saving” without looking at the longer term

[oop north]

Oops! Just checked the thread title - buy one used and you don’t get the first year 100% write down anyway

[manracer]

oop north said:

manracer said:

My accountant says that as I have a limited company I would be silly not to purchase it through that, given the 1st year CT write off.

I am not convinced about this - and I am an accountant with a limited company! The benefit is only going to last as long as you keep the car as you then have to pay corporation tax on the whole proceeds from the vehicle resale / trade in. So you temporarily save 19% of the depreciation (tho drop to 17% CT rate will give a margin) - your saving is on the borrowing cost (though you have to finance that in full from purchase date until you make your next corporation tax payment so a deferred saving - saving is interest rate x 19% of depreciation x period of use - maybe 3%-4%? But if you do contract hire you can get half the VAT back which gives a permanent saving of one twelfth of the contract hire cost. Or 8.3%

I haven’t done the maths in detail but I do think the benefit of corporation tax relief is overstated - some people only think about the immediate “saving” without looking at the longer term

Obviously I am not going to argue with what you said, you clearly know more than me. I just know it will 'save' me about £6k CT in year one. I expect to keep it for many years so I don't know about the issues further down the road, perhaps it's worth me looking into it a little more. Either way, as you say it's a used vehicle so pointless anyway, my bad!