Ltd lending money / ‘leasing’ a car

[anonymous-user]

MIL is going to lease a golf but is worried about the condition it will be in when she returns it

I think the worry is unfounded and would be prepared to offer to participate.

If I used a vat reg ltd to buy a vat qualifying car and leased it to her, what things do I need to consider?

The alternative is she buys the car and the company lends her the money, beating the apr of any other loan offer she comes up with.

Edited by anonymous-user on Saturday 20th January 18:12

[Eric Mc]

Aren't you intending to form a company that needs to be regulated by the finance regulators?

[anonymous-user]

Eric Mc said:

Aren't you intending to form a company that needs to be regulated by the finance regulators?

Pass, hence asking here

Company already exists. This would be supplemental to its normal business and a one off. Company has no accreditation or registration with any financial services regulator.

Sum involved is relatively benign: < £20k if that has any relevance

[Eric Mc]

If you start leasing you are providing a financial service so you may need to check what obligations you are entering in respect of financial regulations.

It seems an awfully complex way to go about a fairly mundane objective.

[CaptainSlow]

Contract Hire to an individual used to be under the Consumer Credit Act...I haven't looked for a few years so may have changed.

[Trailhead]

Eric Mc said:

If you start leasing you are providing a financial service so you may need to check what obligations you are entering in respect of financial regulations.

It seems an awfully complex way to go about a fairly mundane objective.

This.

There will also be P11d implications if MIL is an employee of the company and the loan is over £10k.

[rustyuk]

I had a small dent in the wheel arch and some scratches on the alloys on my leased Golf. Was billed £35 my VWFS.

[Jockman]

When returning a car they will always check mileage and condition.

Fair wear and tear can usually be agreed quite quickly. Nothing to be worried about.

After contract hiring 12 BMWs I think the worst bill I ever received was £180.

[Contract Killer]

Jockman said:

When returning a car they will always check mileage and condition.

Fair wear and tear can usually be agreed quite quickly. Nothing to be worried about.

After contract hiring 12 BMWs I think the worst bill I ever received was £180.

I think some people just assume the leasing companies will rip you off with charges at the end.

My Transit custom went back with a fair few small dents and scratches, and a very well used/abused loading bay.

The BCA guy noted it all down, i was not charged a penny, orly for the excess milage.

I think the only people whi end up with massive end of lease bills are those who litterly trash/abuse the car.