Financing a porsche.
Discussion
Hello,
been considering financing a 997 GT3, i run three small ltd companies and have the ability to put down a 15-20K deposit without to much worries.
A friend told me i could finance a porsche using their scheme, where i put a deposit down, there is an agreed value after the period and i pay a monthly fee.
Couple of questions, i travel a fair bit, so could take out my fuel allowance for both companies, up to 10K miles at 45p, is this correct? between three companies that would almost pay the monthly fee?!
second question, what happens if after 2 years i arrive back and the real value is more than the agreed? would that go towards my next cars deposit?
any experience welcome!!
Al
been considering financing a 997 GT3, i run three small ltd companies and have the ability to put down a 15-20K deposit without to much worries.
A friend told me i could finance a porsche using their scheme, where i put a deposit down, there is an agreed value after the period and i pay a monthly fee.
Couple of questions, i travel a fair bit, so could take out my fuel allowance for both companies, up to 10K miles at 45p, is this correct? between three companies that would almost pay the monthly fee?!
second question, what happens if after 2 years i arrive back and the real value is more than the agreed? would that go towards my next cars deposit?
any experience welcome!!
Al
Are you sure you can take the mileage allowance at 45p for 10k miles twice, just because it happens to be paid from separate companies?
AIUI if the companies are both owned by you, then you should aggregate the mileage
Check out page 2 of this document
http://www.hmrc.gov.uk/mileage/employee-factsheet....
You will probably find more competitive finance than the Porsche dealer's first offer - it pays to shop around
And yes, if the car is worth more than the balloon payment at the end of the term, you have some money over to use as a deposit on the next one
AIUI if the companies are both owned by you, then you should aggregate the mileage
Check out page 2 of this document
http://www.hmrc.gov.uk/mileage/employee-factsheet....
You will probably find more competitive finance than the Porsche dealer's first offer - it pays to shop around
And yes, if the car is worth more than the balloon payment at the end of the term, you have some money over to use as a deposit on the next one
Edited by anonymous-user on Friday 27th January 20:24
allan108 said:
Hello,
been considering financing a 997 GT3, i run three small ltd companies and have the ability to put down a 15-20K deposit without to much worries.
A friend told me i could finance a porsche using their scheme, where i put a deposit down, there is an agreed value after the period and i pay a monthly fee.
Couple of questions, i travel a fair bit, so could take out my fuel allowance for both companies, up to 10K miles at 45p, is this correct? between three companies that would almost pay the monthly fee?!
second question, what happens if after 2 years i arrive back and the real value is more than the agreed? would that go towards my next cars deposit?
any experience welcome!!
Al
You do understand that you'll need to drive the 10k miles on business to claim the mileage rates? been considering financing a 997 GT3, i run three small ltd companies and have the ability to put down a 15-20K deposit without to much worries.
A friend told me i could finance a porsche using their scheme, where i put a deposit down, there is an agreed value after the period and i pay a monthly fee.
Couple of questions, i travel a fair bit, so could take out my fuel allowance for both companies, up to 10K miles at 45p, is this correct? between three companies that would almost pay the monthly fee?!
second question, what happens if after 2 years i arrive back and the real value is more than the agreed? would that go towards my next cars deposit?
any experience welcome!!
Al
Assuming that's a yes, do you think the car runs on fresh air?
thanks for the link,
yes they are totally separate, i add up the miles in a year so don't think i would have a problem claiming the 30K miles! ( 3 x 10K ).
Will other finance companies offer the guaranteed value, this really helps as it reduces the overall borrowing! and with the GT3 etc the agreed value is pretty good.
example i had today,
£79000 car
£15000 deposit,
£35000 agreed value, i know its low but i guess thats what you expect.
2 years
£1400 ish / month.
i could probably look at a gt3rs at that price, not as practical, but this Gt3 only had 3000 miles and looked like new, seriously.
yes they are totally separate, i add up the miles in a year so don't think i would have a problem claiming the 30K miles! ( 3 x 10K ).
Will other finance companies offer the guaranteed value, this really helps as it reduces the overall borrowing! and with the GT3 etc the agreed value is pretty good.
example i had today,
£79000 car
£15000 deposit,
£35000 agreed value, i know its low but i guess thats what you expect.
2 years
£1400 ish / month.
i could probably look at a gt3rs at that price, not as practical, but this Gt3 only had 3000 miles and looked like new, seriously.
I'd be careful about 3x 10k @ 45p rather than 10k @ 45p and 20k @ 25p. I am pretty sure that if you are a Director of all 3 Ltds or controlling shareholder, HMRC would disallow the 3 x 10k @ 45p if they were to look into it.
Not the end of the world (its only £4k so even with 100% penalty only £8k for the year) but, it things were finely balanced it could upset the apple cart
try Oracle and a couple of the regular posters who do finance on here - even if they don't come up with a better deal, at least you will know you have a good deal.
£48,600 to own a GT3 for 2 years / 60k miles is what you are looking at now (£15k + £33600). Only you know if that's the right deal for you. But you do know that every mile would be better than if you were in a vectra diesel!
Not the end of the world (its only £4k so even with 100% penalty only £8k for the year) but, it things were finely balanced it could upset the apple cart
try Oracle and a couple of the regular posters who do finance on here - even if they don't come up with a better deal, at least you will know you have a good deal.
£48,600 to own a GT3 for 2 years / 60k miles is what you are looking at now (£15k + £33600). Only you know if that's the right deal for you. But you do know that every mile would be better than if you were in a vectra diesel!
Kudos said:
You are the one talking about financing a car based on the "income" from the mileage, not me!
Yep you are right, but there was probably a less sark'y way of writing it. Its not to run on the income, its just the income from the mileage can help towards it.
Thanks for the heads up on the three 45 p allowances, i guess this is really the point i wanted to figure out, as it did not sound right to me.
Cheers
Al
Someone correct me if I'm wrong here, but the 10k mileage allowance is against YOU and not the company. It doesn't matter where it comes from or who's the director of any of the companies, you will only get 10k miles at 45p...
Otherwise people would just register a new company each time they hit the 10k limit...
Also sounds like the most expensive way to own a Porsche, if you can afford to burn £1400 a month on the finance, and a 20k deposit - then why not just wait a bit and save up some more money for it?
Otherwise people would just register a new company each time they hit the 10k limit...
Also sounds like the most expensive way to own a Porsche, if you can afford to burn £1400 a month on the finance, and a 20k deposit - then why not just wait a bit and save up some more money for it?
funtimee said:
Someone correct me if I'm wrong here, but the 10k mileage allowance is against YOU and not the company. It doesn't matter where it comes from or who's the director of any of the companies, you will only get 10k miles at 45p...
Otherwise people would just register a new company each time they hit the 10k limit...
Also sounds like the most expensive way to own a Porsche, if you can afford to burn £1400 a month on the finance, and a 20k deposit - then why not just wait a bit and save up some more money for it?
its a good question, Otherwise people would just register a new company each time they hit the 10k limit...
Also sounds like the most expensive way to own a Porsche, if you can afford to burn £1400 a month on the finance, and a 20k deposit - then why not just wait a bit and save up some more money for it?
i have enough to almost buy the porsche outright, but that would leave me empty cash wise, would rather use the rest for a deposit on another house/ flat etc. is there a cheaper way to finance a porsche like this? 1400 / month is a lot, but depends on how you value GT3's, i value them quite highly... but i may look at a 996 gt3 and buy it outright.
Some people seem to think finance is a great way to own a car, a lot of company directors seem to do this, im just trying to understand it all.
Well its simple really... if you can make more of a return than it would cost in finance on the extra cash by investing it somewhere else then do that. If not then just buy it outright.
Personally if I had the option of doing either then I'd be buying the car outright... It all depends on what car it is as well, BMW finance for example has such competitive rates that it almost makes more sense to finance the car than buy it outright... doesn't sound like that the case with Porsche.
Personally if I had the option of doing either then I'd be buying the car outright... It all depends on what car it is as well, BMW finance for example has such competitive rates that it almost makes more sense to finance the car than buy it outright... doesn't sound like that the case with Porsche.
I always thought it's the company's allowance per employee? The employee claims the mileage and the company pays out at 45p/m for first 10k miles.
If the employee was employed at a 2nd company, then that company would also pay out at the same rate for the first 10k miles with that company.
How is any company supposed to know what mileage claims its employees have put in with their other employers?
Or am I mistaken?
If the employee was employed at a 2nd company, then that company would also pay out at the same rate for the first 10k miles with that company.
How is any company supposed to know what mileage claims its employees have put in with their other employers?
Or am I mistaken?
Im pretty sure thats in correct,
i have been employed by two separate companies before and they both involved traveling and both paid me the milage, with the relevant receipts obviously.
Its not tax evasion if i am actually traveling the distance for the companies.
i have been employed by two separate companies before and they both involved traveling and both paid me the milage, with the relevant receipts obviously.
Its not tax evasion if i am actually traveling the distance for the companies.
swerni said:
Which is fine until you are investigated for tax evasion.
You can only claim the mileage once
It's your allowance not the companies
HTH
You can only claim the mileage once
It's your allowance not the companies
HTH
Back in 2006 I got myself a 2 year old 997 C2S.
Paid £56k for it privately (dealer prices were in the £60's).
£8k deposit and £750/pm with a balloon payment after 4 years. Lombard financed it through Bespoke Automotive (Gareth).
I ended up selling it after a year or so but actually ended up with around £7k of my deposit back...
One of the cheapest cars I've ever owned despite it being one of the most expensive to buy!
Might be worth thinking about.
Paid £56k for it privately (dealer prices were in the £60's).
£8k deposit and £750/pm with a balloon payment after 4 years. Lombard financed it through Bespoke Automotive (Gareth).
I ended up selling it after a year or so but actually ended up with around £7k of my deposit back...
One of the cheapest cars I've ever owned despite it being one of the most expensive to buy!
Might be worth thinking about.
swerni said:
You have a personal allowance.
HMRC allows you to claim back 45p for the first 10,000 miles you do then 25p per mile there after
If you claim 45p a mile from the second company this is fine, however you will be taxed on 20p of that at your rate of tax.
Not so, there are circumstances where you are entitled to claim 45p per mile for up to 10k miles from multiple employments.HMRC allows you to claim back 45p for the first 10,000 miles you do then 25p per mile there after
If you claim 45p a mile from the second company this is fine, however you will be taxed on 20p of that at your rate of tax.
I already posted a link to the relevant fact sheet and the guidance is very clear, if the employments are totally separate, then the higher rate applies to each employment. This does not apply in OP's case as the employments are not separate (in that he owns all 3 companies).
http://www.hmrc.gov.uk/mileage/employee-factsheet....
Thread hijack!!
My company offers 2 schemes for claiming mileage.
1) 45p for first 10k miles 25p thereafter
2) monthly payment and mileage rate if 16.3p and then I can claim the taxable allowance back at the end of the year.
As I do around 22000 company miles a year they are trying to force me into scheme 2.
Is this possible or is the first rate my right? I would be slightly better off on scheme 1.
My company offers 2 schemes for claiming mileage.
1) 45p for first 10k miles 25p thereafter
2) monthly payment and mileage rate if 16.3p and then I can claim the taxable allowance back at the end of the year.
As I do around 22000 company miles a year they are trying to force me into scheme 2.
Is this possible or is the first rate my right? I would be slightly better off on scheme 1.
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