Slowest Depreciating Luxury EV (Short Term)
Discussion
Looking to buy a luxury EV to take advatage of the 100% write down.
However.... Moving abroad in the not too distant future so may want to sell in about 6 months time.
Appreciate no such thing as a 'crystal ball' but which is most likely to hold it's value?
Thinking Porsche Taycan, Audi E-Tron RS etc
However.... Moving abroad in the not too distant future so may want to sell in about 6 months time.
Appreciate no such thing as a 'crystal ball' but which is most likely to hold it's value?
Thinking Porsche Taycan, Audi E-Tron RS etc
Other than the iPace, is there a luxury EV? The Taycan and e-tron RS are sporty cars, premium for sure but not really luxury focused. I wouldn't even say the iPace is all that luxury either tbh, maybe 50/50 luxury/sporty.
I think we need a few more horses to join this race before debating which is best..
If instead of luxury we look at premium, then the BMW ix is very likely to hold it's value because they can't make them fast enough. The same will surely be true of the first electric Range Rover which I'm sure will sell unbelievably well.
Taycan but getting hold of one at sensible money will be the challenge.
If you want to stretch "luxury" a bit, a Tesla Model Y can probably be bought and sold loosing very little over say 6 months. There are some chancers asking over list at the moment but you may well be able to get a new one this month, certainly in a couple of months (don't believe the dates on the Tesla website, people are often being told 6 months online and then being offered one within 2 weeks after they order). I'd steer clear of other Tesla models as the prices are currently inflated and there's signs of dropping valuations.
The used market is a basket case at the moment and it can't stay the same, but nobody knows when it's going to change, the problem for you is getting hold of anything at a price that might be reasonably achievable in say 6 months is the difficult call. Etron GT would be a possible as there are a few now at under 90k but the buy/sell spread for that car might be 4k assuming the retail price doesn't change. If you want to play it a little safer, 45k get you a reasonable ipace. As an example, used prices for 2019 models have dropped 3k since Jan so they've come off the peak but they're still 203k over the price they were last summer and 5k over where the same car was this time last year. Similar can be said for an e-tron 55.
If you want to stretch "luxury" a bit, a Tesla Model Y can probably be bought and sold loosing very little over say 6 months. There are some chancers asking over list at the moment but you may well be able to get a new one this month, certainly in a couple of months (don't believe the dates on the Tesla website, people are often being told 6 months online and then being offered one within 2 weeks after they order). I'd steer clear of other Tesla models as the prices are currently inflated and there's signs of dropping valuations.
The used market is a basket case at the moment and it can't stay the same, but nobody knows when it's going to change, the problem for you is getting hold of anything at a price that might be reasonably achievable in say 6 months is the difficult call. Etron GT would be a possible as there are a few now at under 90k but the buy/sell spread for that car might be 4k assuming the retail price doesn't change. If you want to play it a little safer, 45k get you a reasonable ipace. As an example, used prices for 2019 models have dropped 3k since Jan so they've come off the peak but they're still 203k over the price they were last summer and 5k over where the same car was this time last year. Similar can be said for an e-tron 55.
100% write down can only be used on new cars or ex-demonstrators with reasonable miles.
And when you sell the car you then pay the Corp tax on it AIUI. So the saving would be on what it depreciated over your ownership (unlikely to be much or anything on an in demand EV).
Even if you could get a decent car at a decent price, I'm not sure it will save you what you think. But I'm all for man maths.
Taycan BTW.
And when you sell the car you then pay the Corp tax on it AIUI. So the saving would be on what it depreciated over your ownership (unlikely to be much or anything on an in demand EV).
Even if you could get a decent car at a decent price, I'm not sure it will save you what you think. But I'm all for man maths.
Taycan BTW.
Amateurish said:
iPace isn't luxury - more like a mid level crossover.
If you can get hold of any decent new EV for list, you probably won't lose much in 6 months.
Wouldn't mid-level be something like a typical mid-range brand in decent spec - such as a nicely equipped Ford SUV or whatever?If you can get hold of any decent new EV for list, you probably won't lose much in 6 months.
Along with the German 3 I would say Jaguar are 'premium' and for luxury imo you need to step up to Aston, Range Rover and then obviously RR and Bentley at the very top.
Jag claim the i-pace is luxury, but I have one and I'm a bit more realistic. It's a step above the Germans in terms of the standard of some materials and definitely the leather and electric seats. In terms of reliability vs hassle it's probably losing a step - like all JLR products! Overall, it's just another premium car tbh.
As mentioned above, if you buy at say 60k and claim 100% allowances, then sell for similar in 6 months, other than possibly buying and selling in 2 corporation tax periods, what’s the tax incentive of doing this?
Running a car for 6 months pretty much free I get but not so much the tax side
Running a car for 6 months pretty much free I get but not so much the tax side
TheDeuce said:
Amateurish said:
iPace isn't luxury - more like a mid level crossover.
If you can get hold of any decent new EV for list, you probably won't lose much in 6 months.
Wouldn't mid-level be something like a typical mid-range brand in decent spec - such as a nicely equipped Ford SUV or whatever?If you can get hold of any decent new EV for list, you probably won't lose much in 6 months.
Along with the German 3 I would say Jaguar are 'premium' and for luxury imo you need to step up to Aston, Range Rover and then obviously RR and Bentley at the very top.
Jag claim the i-pace is luxury, but I have one and I'm a bit more realistic. It's a step above the Germans in terms of the standard of some materials and definitely the leather and electric seats. In terms of reliability vs hassle it's probably losing a step - like all JLR products! Overall, it's just another premium car tbh.
I had an iPace and it is nowhere near my 8 series in terms of "luxury" and quality. My iPace also had various quality issues which really let it down, especially the touchscreen and infotainment. The iPace is blown out of the water by something like the iX.
We are also looking at this method as a way to carry forward some company tax.
Buy a car for £150K (our year end is April), keep 6 months then sell.
Get a £150K car for 6 months, save £30K on the corporation tax (minus the depreciation) and profits retained in company on sale of vehicle.
Appreciate, we would then have the same issue with the corp tax for the following year but we have plans which will enable us to reduce our company profits the following year.
Totally understand it has to be new or ex-demo...
Buy a car for £150K (our year end is April), keep 6 months then sell.
Get a £150K car for 6 months, save £30K on the corporation tax (minus the depreciation) and profits retained in company on sale of vehicle.
Appreciate, we would then have the same issue with the corp tax for the following year but we have plans which will enable us to reduce our company profits the following year.
Totally understand it has to be new or ex-demo...
Amateurish said:
Fair enough. Personally, I would put Ford more at the budget end of things. Certainly my Ranger feels pretty cheap.
I had an iPace and it is nowhere near my 8 series in terms of "luxury" and quality. My iPace also had various quality issues which really let it down, especially the touchscreen and infotainment. The iPace is blown out of the water by something like the iX.
In tech terms sure - BMW have fantastic tech and I'm moving to their EV's after the Jag.. but what does the iX have that the iPace doesn't? I have the HSE with options so I guess I might be taking a lot of kit as standard. I had an iPace and it is nowhere near my 8 series in terms of "luxury" and quality. My iPace also had various quality issues which really let it down, especially the touchscreen and infotainment. The iPace is blown out of the water by something like the iX.
Barney2201 said:
We are also looking at this method as a way to carry forward some company tax.
Buy a car for £150K (our year end is April), keep 6 months then sell.
Get a £150K car for 6 months, save £30K on the corporation tax (minus the depreciation) and profits retained in company on sale of vehicle.
Appreciate, we would then have the same issue with the corp tax for the following year but we have plans which will enable us to reduce our company profits the following year.
Totally understand it has to be new or ex-demo...
Won't you have to pay corporation tax on the sales proceeds?Buy a car for £150K (our year end is April), keep 6 months then sell.
Get a £150K car for 6 months, save £30K on the corporation tax (minus the depreciation) and profits retained in company on sale of vehicle.
Appreciate, we would then have the same issue with the corp tax for the following year but we have plans which will enable us to reduce our company profits the following year.
Totally understand it has to be new or ex-demo...
Depending on supply, I gotta say that a top spec Tesla or any Model Y is a pretty safe bet. Plenty of demand and not enough supply means they should hold their value well. Plenty of current examples show that you can make your money back on them.
That said, a carefully speced e-tron GT or Taycan might even make a little money given delivery times are pretty long at the moment. But, and I am going out on a limb here, I suspect they are spec sensitive though. The right color and spec will be critical as buyers at this price point will want what they want, not just any model. Risk is higher and potential losses higher.
Getting an Audi or Porsche will be the challenge though, so it might not work.
That said, a carefully speced e-tron GT or Taycan might even make a little money given delivery times are pretty long at the moment. But, and I am going out on a limb here, I suspect they are spec sensitive though. The right color and spec will be critical as buyers at this price point will want what they want, not just any model. Risk is higher and potential losses higher.
Getting an Audi or Porsche will be the challenge though, so it might not work.
EVLATECOMER said:
Barney2201 said:
We are also looking at this method as a way to carry forward some company tax.
Buy a car for £150K (our year end is April), keep 6 months then sell.
Get a £150K car for 6 months, save £30K on the corporation tax (minus the depreciation) and profits retained in company on sale of vehicle.
Appreciate, we would then have the same issue with the corp tax for the following year but we have plans which will enable us to reduce our company profits the following year.
Totally understand it has to be new or ex-demo...
Won't you have to pay corporation tax on the sales proceeds?Buy a car for £150K (our year end is April), keep 6 months then sell.
Get a £150K car for 6 months, save £30K on the corporation tax (minus the depreciation) and profits retained in company on sale of vehicle.
Appreciate, we would then have the same issue with the corp tax for the following year but we have plans which will enable us to reduce our company profits the following year.
Totally understand it has to be new or ex-demo...
It’s a little pointless unless they’re making a loss the following year without doing so, and if CGT goes up they’ll be worse off, but they must have a reason.
Heres Johnny said:
See the post you quoted, they just want to punt the profit to the following year.
It’s a little pointless unless they’re making a loss the following year without doing so, and if CGT goes up they’ll be worse off, but they must have a reason.
Not sure it does say that???It’s a little pointless unless they’re making a loss the following year without doing so, and if CGT goes up they’ll be worse off, but they must have a reason.
Barney2201 said:
We are also looking at this method as a way to carry forward some company tax.
Buy a car for £150K (our year end is April), keep 6 months then sell.
Get a £150K car for 6 months, save £30K on the corporation tax (minus the depreciation) and profits retained in company on sale of vehicle.
Appreciate, we would then have the same issue with the corp tax for the following year but we have plans which will enable us to reduce our company profits the following year.
Totally understand it has to be new or ex-demo...
Unless you have an order in already (and for the Taycan, for example, that would mean having it placed at least 6mths ago for April delivery) then I don't think you're going to get a £150k EV.Buy a car for £150K (our year end is April), keep 6 months then sell.
Get a £150K car for 6 months, save £30K on the corporation tax (minus the depreciation) and profits retained in company on sale of vehicle.
Appreciate, we would then have the same issue with the corp tax for the following year but we have plans which will enable us to reduce our company profits the following year.
Totally understand it has to be new or ex-demo...
You could buy one of the ex-demo ones on the Porsche approved site, but they seem to be selling at a premium. So on top of the CT rise in 2023 (though that may not impact you if you are trying to do this right now to sell later this year), you also have the risk of the premium you pay now not being able to be recouped when you come to sell.
The same will almost certainly apply to the Merc EQS (or whatever it's called - not even sure it'd be possible to get one before April). And am not sure which EV I'd want to buy outside of those two for that scale of money. Have just had a quick look on the Tesla site and the most expensive "immediately available" car they have seems to be £88k, and that's done 56k miles so would be pushing it for the tax break you're after.
I can see the attraction - I was twisting and turning myself looking at ways to make things work on this front
But I'm really not sure it will save you anything at all and you'll need to make sure your plans for the next tax year are absolutely rock solid in order to not land yourself with an unexpected tax bill. As another hurdle, who will you sell through? The number of people wanting to buy £150k cars outside of a dealer network will be slim, and selling within the dealer network gets you spanked on price (OK, you'd be paying less CT on the residual, but you'd be losing more in outright cash terms 
).(What I would say is that the Taycan is so good that if you can afford one longer term, get your name down. I suspect residuals will hold up well for them, so you could get on friendly terms with your local Porsche dealer and have cheap motoring for a bit regardless of the tax position).
If the tax breaks are only available to the first buyer even if just in practice eg cars are bought through business leasing to avail of the tax breaks that can’t be done on a 2-3yo car or the tax breaks will be gone in any event then the depreciation will be cataclysmic. The lease rates are very high so would seem that’s the expectation from the leasing companies too. This may be irrelevant in six months time of course but in 2-3 years…
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