Finance vs cash

[C722]

What is your preference when buying a company vehicle? If you had the money to buy outright would you, or would you finance it? Just looking at the pros and cons really.

Vechicle in question is a transit tipper, and would get heavy use.

Edited by C722 on Tuesday 24th July 16:00

[anonymous-user]

Either could be best. Based on the info provided, would be guessing only

[KevinCamaroSS]

You could always lease it, this is the most popular choice.

[C722]

I think hire purchase may be the best way, as we are a groundworks company (vechicles get battered), the vehcile could be subject to heavy penalty charges if on lease?

[Deesee]

C722 said:

I think hire purchase may be the best way, as we are a groundworks company (vechicles get battered), the vehcile could be subject to heavy penalty charges if on lease?

A popular way of doing it in your trade!

Work out the expected life of the tipper (say 4 yrs), then finance over a shorter time (say 3 yrs), that way you'll get a year for "free" or hopefully have something to sell on for the next deposit/purchase.

HP, you will (most of the time) need to put down a deposit + pay the vat.

Speak to your accountant/tax advisor, you may be able to claim some/all as capital allowances etc, likewise if you've got company or personal cash buying it outright could be advantageous too.

[Butter Face]

C722 said:

What is your preference when buying a company vehicle? If you had the money to buy outright would you, or would you finance it? Just looking at the pros and cons really.

Vechicle in question is a transit tipper, and would get heavy use.

Edited by C722 on Tuesday 24th July 16:00

Depends on the rate etc. Lots of people that we deal with (commercial vehicle sales) finance through an external company that specialises in business/asset finance and does super low rates.

It also depends on how your accountant thinks is best, can you write off the cost of the payments/interest? Would it be best to purchase outright and write down the vehicle monthly? Speak to your accountant and go the way they advise IMO.