Leasing a Porsche?
Discussion
Hi Chaps
I became self employed 8 months ago and was wondering what the situation is with leasing a Porsche, ie: tax efficiency, maximum age of car, miles allowable per annum etc etc.. was going to buy a 993 with cash but thought it may be more tax efficient to lease, any help and advice much appreciated.
Paul
im afraid any advantages of 'leasing' or residual balance financing for tax purposes have long since gone.
There are many leasing schemes available, mainly issued by the manufacturers and are designed in such a way to keep you buying motor cars! When car prices reached levels way beyond inflation the car makers needed a saviour and the PCP or leasing with baloon was born. Sounds better than rental doesnt it!! but in fact you end up with a financial burden which on a new car is huge. The thing is, being self employed one can be at the highest risk.
For example Aston is doing a deal on a DB7 now the totl repayable ( which no one seems to consider) is 124,000 on a car that in 3 years time will be worth a good deal less than half that!
In the case of new cars ( or ones 2 years old max) the car is often depreciating at a higher rate than you are paying for it!
I have a friend in a 'situation' with a BMW 7 series at the moment. On a BMW finance plan, 9 months old and business is bad so needs to sell. problem is that BMW want 28K more than the car is worth.
Best buy it cash, or half cash and go for the very cheapest loan from say A&L 6%- thats half the rate of some of the manufacturers offerings!
There are many leasing schemes available, mainly issued by the manufacturers and are designed in such a way to keep you buying motor cars! When car prices reached levels way beyond inflation the car makers needed a saviour and the PCP or leasing with baloon was born. Sounds better than rental doesnt it!! but in fact you end up with a financial burden which on a new car is huge. The thing is, being self employed one can be at the highest risk.
For example Aston is doing a deal on a DB7 now the totl repayable ( which no one seems to consider) is 124,000 on a car that in 3 years time will be worth a good deal less than half that!
In the case of new cars ( or ones 2 years old max) the car is often depreciating at a higher rate than you are paying for it!
I have a friend in a 'situation' with a BMW 7 series at the moment. On a BMW finance plan, 9 months old and business is bad so needs to sell. problem is that BMW want 28K more than the car is worth.
Best buy it cash, or half cash and go for the very cheapest loan from say A&L 6%- thats half the rate of some of the manufacturers offerings!
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