Financing a used van.... The best way.

[jason61c]

So as I've never been able to get my head around this.

I'm looking at a used hilux for company use, also family use.

As a limited company, whats the best way to finance it? I can't take a loan in the company name as i've not been trading long enough.

How much of the cost can I put as a business expense? We pay the wife as a company director 10k a year. Just a tax free dividend for me(5k). So even giving personal use there's no real cost in tax.

Used truck is £14450+vat.

How much with the truck actually end up costing!?

[matt-ITR]

Lease Purchase?

Going through a similar process myself. Company used is Lombard (recommended through my bank).
Interest rate of 2%. They cover the full cost, minus VAT.

This will be purchased by the business and not personally.

[jason61c]

I'd prefer to own it, as it'd be logo'd and having done the maths the cost of doing it that way means i'd be paying over the odds, I'm looking at a hilux, i'd like to keep it 5 years.

[matt-ITR]

Lease Purchase you do own it.
It isn't the same as Lease Hire. Your name is on the log book, etc. It's just that the finance company can take the asset if you screw up which is why the % rate is so low.

[jason61c]

matt-ITR said:

Lease Purchase you do own it.
It isn't the same as Lease Hire. Your name is on the log book, etc. It's just that the finance company can take the asset if you screw up which is why the % rate is so low.

Sorry, I misread. I'm after getting something 3 years old, lease purchase seems difficult to find at sensible rates at that age.

[matt-ITR]

I'm not aware of any restrictions on age.

[jason61c]

matt-ITR said:

I'm not aware of any restrictions on age.

Hi Matt, no restrictions, just crappy rates etc.

[matt-ITR]

I'd keep looking around. I am buying used and was quoted 2%.

[jason61c]

Will do. Where was what you saw listed?

[matt-ITR]

The bank recommended it and they contacted me directly. But the company is Lombard.

[andygo]

I work for an asset finance brokers. Lease purchase is the way to go. By all means drop me a message and I can explain how it works and sort it out for you.