Best Lease Car Deals Available? (Vol 5)

[hoganscrogan]

Mrp1103 said:

Damn when you put it like that it definitely itsnt a good deal. Goes from 19% to 30%

£37k sticker price you'd want nearer £290 month (3+23 )

[Ham_and_Jam]

Gdcuk said:

If the car is in the company name, then driven by a director, it would likely be considered a benefit in kind, so there’ll be a company car tax liability.

The lease company or finance house won’t care, but HMRC and the other two directors will care when HMRC come knocking!

I would suggest speaking to an accountant, there are strategies that a company director can put in place (like salary sacrifice) to get a decent lease for an employee (subject to choosing a car with decent BIK rates)

If the lease is paid from taxable income, there is no benefit in kind. The tax has already been paid through PAYE. HMRC will not be interested how he spends his hard earned cash!

The lease company will have qualifying criteria in place, if you pass, you pass. The funding bank account is irrelevant, and can be changed any point during the lease.

The only issue I can see here is whether the other 2 directors are happy whether the 3rd can use the company as a name on the application for the lease.

I have had many car leases, both through my companies, and personal. I would seek advice from them, as I have in the past, with no issues doing what was suggested initially

[Spy]

Brido. said:

Just got a quote from Santander on the XC60.

Works out 17% ish of the list price over the 18 months. No initial rental fee 379 a month.

15k miles over the 18 month term. 7.56p excess mileage charge for first 5k miles, 10.08p thereafter.

Does this seem decent in the current climate? I know I've probably missed better deals previously

Edited by Brido. on Tuesday 10th July 13:12

What is the lead time on these ?

[Brido.]

Spy said:

What is the lead time on these ?

Haven't got that far just yet. I presumed stock cars as colour has been mentioned on both quotes.

[5to1]

Ham_and_Jam said:

If the lease is paid from taxable income, there is no benefit in kind. The tax has already been paid through PAYE. HMRC will not be interested how he spends his hard earned cash!

The lease company will have qualifying criteria in place, if you pass, you pass. The funding bank account is irrelevant, and can be changed any point during the lease.

The only issue I can see here is whether the other 2 directors are happy whether the 3rd can use the company as a name on the application for the lease.

I have had many car leases, both through my companies, and personal. I would seek advice from them, as I have in the past, with no issues doing what was suggested initially

I was of the same opinion, I believe erroneously. It turns out there is a famous (if you're an accountant) case dealing with this issue:

https://www.rossmartin.co.uk/sme-tax-news/2140-apo...

Apollo Fuels won and being the good sports HMRC/Government are they changed legislation

NB: As I understand it the 2016 changes were made to ensure employees pay BIK even if they are paying fair/market rate for the benefit. I presume in the case of company only offers such as BMW, it could be deemed the employee was deriving a benefit even if they paid the full lease costs and as such HMRC may have stamped all over you prior to the changes in legislation.

Also I believe HMRC are suspicious of such arrangements as they believe there must be some avoidance going on and in the alternative it's clear from the change in legislation they want their chunk of flesh anyway :/

[Dan123collins]

hoganscrogan said:

Arrrrrgh - was looking for one of these! Smashed the starfruit on a V90 in the end (for much more than this)

Not sure if this is a real deal though!- Skoda Kodiak SEL 2.0 Tdi Auto £582 + 23x £194

https://www.whatcar.com/car-leasing/deals/personal...

Simply awesome deal on that Skoda !!!! Would actually get it as a dad bus if my lease was up.

[edc]

The Kodiaq is a good deal. The Karoq which is a segment size smaller was basically the same price or just a bit more the previous Quarter. Tiguan is much more. You'll lay the same sort of price for a Seat Arona which is also a size smaller.

[Robk999]

Wow, if that Kodiaq deal is real I'm having one!

[Marc118]

Finally signed up to the 530d M-Sport plus.
List price £53,500 and 25k per miles at £486 per month, which is a lot more than I wanted to spend but I’m happy that I’ve got the additional mileage allowance.
3 weeks until the car arrives.

I then received a phone call back from contract cars on another’s car I’d been looking at, which is the E class 220d AMG, they have a stonking deal on that as well. For anyone interested, it might be worth checking out.

Finally I think I’ve Pm’d all of those who asked for the details on the lease company, for the BMW car.
Sorry for the late reply but I’ve been really busy at work and haven’t had time to come on here as much as I wanted to.

[numtumfutunch]

Marc118 said:

Finally signed up to the 530d M-Sport plus.
List price £53,500 and 25k per miles at £486 per month, which is a lot more than I wanted to spend but I’m happy that I’ve got the additional mileage allowance.
3 weeks until the car arrives.

I then received a phone call back from contract cars on another’s car I’d been looking at, which is the E class 220d AMG, they have a stonking deal on that as well. For anyone interested, it might be worth checking out.

Finally I think I’ve Pm’d all of those who asked for the details on the lease company, for the BMW car.
Sorry for the late reply but I’ve been really busy at work and haven’t had time to come on here as much as I wanted to.

Thanks from me, appreciated

And 6 pot BMW versus 4 cylinder OAP wagon - really a hard decision???????
(Although if the 220 was anywhere near the 300/month they were at Easter please give us a subtle sign)

Cheers

[Gdcuk]

5to1 said:

Ham_and_Jam said:

If the lease is paid from taxable income, there is no benefit in kind. The tax has already been paid through PAYE. HMRC will not be interested how he spends his hard earned cash!

The lease company will have qualifying criteria in place, if you pass, you pass. The funding bank account is irrelevant, and can be changed any point during the lease.

The only issue I can see here is whether the other 2 directors are happy whether the 3rd can use the company as a name on the application for the lease.

I have had many car leases, both through my companies, and personal. I would seek advice from them, as I have in the past, with no issues doing what was suggested initially

I was of the same opinion, I believe erroneously. It turns out there is a famous (if you're an accountant) case dealing with this issue:

https://www.rossmartin.co.uk/sme-tax-news/2140-apo...

Apollo Fuels won and being the good sports HMRC/Government are they changed legislation

NB: As I understand it the 2016 changes were made to ensure employees pay BIK even if they are paying fair/market rate for the benefit. I presume in the case of company only offers such as BMW, it could be deemed the employee was deriving a benefit even if they paid the full lease costs and as such HMRC may have stamped all over you prior to the changes in legislation.

Also I believe HMRC are suspicious of such arrangements as they believe there must be some avoidance going on and in the alternative it's clear from the change in legislation they want their chunk of flesh anyway :/

Yes, paying from net income is too good to be true to avoid company car tax, as it would be circumventing BIK rates and their link to emissions, which could also be seen as mechanisms to avoid other taxation implications (such as annual allowance for pensions, personal allowance taper) and if it’s deemed avoidance, they’ll find a way get you.

[msport123]

Gdcuk said:

5to1 said:

Ham_and_Jam said:

If the lease is paid from taxable income, there is no benefit in kind. The tax has already been paid through PAYE. HMRC will not be interested how he spends his hard earned cash!

The lease company will have qualifying criteria in place, if you pass, you pass. The funding bank account is irrelevant, and can be changed any point during the lease.

The only issue I can see here is whether the other 2 directors are happy whether the 3rd can use the company as a name on the application for the lease.

I have had many car leases, both through my companies, and personal. I would seek advice from them, as I have in the past, with no issues doing what was suggested initially

I was of the same opinion, I believe erroneously. It turns out there is a famous (if you're an accountant) case dealing with this issue:

https://www.rossmartin.co.uk/sme-tax-news/2140-apo...

Apollo Fuels won and being the good sports HMRC/Government are they changed legislation

NB: As I understand it the 2016 changes were made to ensure employees pay BIK even if they are paying fair/market rate for the benefit. I presume in the case of company only offers such as BMW, it could be deemed the employee was deriving a benefit even if they paid the full lease costs and as such HMRC may have stamped all over you prior to the changes in legislation.

Also I believe HMRC are suspicious of such arrangements as they believe there must be some avoidance going on and in the alternative it's clear from the change in legislation they want their chunk of flesh anyway :/

Yes, paying from net income is too good to be true to avoid company car tax, as it would be circumventing BIK rates and their link to emissions, which could also be seen as mechanisms to avoid other taxation implications (such as annual allowance for pensions, personal allowance taper) and if it’s deemed avoidance, they’ll find a way get you.

I remember going round in circles with the same dilemma. I couldn’t see what the issue was if I was paying for a business lease (in the company name) via my own tax paid income including VAT. I wouldnt be claiming any Corp tax relief or reclaiming any VAT element either.

My accountant sent me numerous case law documents which made me think it not worth the hassle over saving a few quid - so I gave up!

[H6Nathan]

Dan123collins said:

hoganscrogan said:

Arrrrrgh - was looking for one of these! Smashed the starfruit on a V90 in the end (for much more than this)

Not sure if this is a real deal though!- Skoda Kodiak SEL 2.0 Tdi Auto £582 + 23x £194

https://www.whatcar.com/car-leasing/deals/personal...

Simply awesome deal on that Skoda !!!! Would actually get it as a dad bus if my lease was up.

Great spot. RRP of £32280 according to the Skoda configurator makes this a 16% deal!! Quote request sent...

[rb5201]

I'm keen on that skoda to. Just waiting for price back on 15k. Not my ideal car but for that price can't say no!

[m99unp]

Been offered a Mercedes-Benz C Class Saloon C220d AMG Line 4dr 9G-Tronic for 1+24 with 10k miles at £279 a month including maintenance. Basic spec which comes with solid paint and leathers. Is this deal any good?

[kingb]

yep ive bitten on that skoda deal too - again not what I was really looking at but thats a bargain!!

This is exactly why I follow this thread!!

[thewallboy]

Marc118 said:

Finally signed up to the 530d M-Sport plus.
List price £53,500 and 25k per miles at £486 per month, which is a lot more than I wanted to spend but I’m happy that I’ve got the additional mileage allowance.
3 weeks until the car arrives.

I then received a phone call back from contract cars on another’s car I’d been looking at, which is the E class 220d AMG, they have a stonking deal on that as well. For anyone interested, it might be worth checking out.

Finally I think I’ve Pm’d all of those who asked for the details on the lease company, for the BMW car.
Sorry for the late reply but I’ve been really busy at work and haven’t had time to come on here as much as I wanted to.

What was the initial on this deal? Thanks.

[Marc118]

It was 9 upfront

[Marc118]

numtumfutunch said:

Marc118 said:

Finally signed up to the 530d M-Sport plus.
List price £53,500 and 25k per miles at £486 per month, which is a lot more than I wanted to spend but I’m happy that I’ve got the additional mileage allowance.
3 weeks until the car arrives.

I then received a phone call back from contract cars on another’s car I’d been looking at, which is the E class 220d AMG, they have a stonking deal on that as well. For anyone interested, it might be worth checking out.

Finally I think I’ve Pm’d all of those who asked for the details on the lease company, for the BMW car.
Sorry for the late reply but I’ve been really busy at work and haven’t had time to come on here as much as I wanted to.

Thanks from me, appreciated

And 6 pot BMW versus 4 cylinder OAP wagon - really a hard decision???????
(Although if the 220 was anywhere near the 300/month they were at Easter please give us a subtle sign)

Cheers

I think they were around £250 for the 10k mileage allowance. For 25k it was £420 IIRC

[thewallboy]

Marc118 said:

It was 9 upfront

ta. % wise its very similar to the XC60 I'm about to sign up for. c. 30% which on 25k miles I think is pretty good. Be interested to see what the Skoda deal comes back at for the same miles.

Good work.