Lease vs Buy

TAYC4N

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Yes. It’s HP so you pay back the full amount during the lifetime of the finance.
It is indeed. I’m sticking to PCP for now as with the economic uncertainty it’s always good to know what the car will be worth as a minimum at the end of the contract.
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TAYC4N

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Nope £3000 off the total invoice - I just paid £3k less on my deposit.
 

Carlos

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Hi guys,

New to the forum after test driving a beautiful Taycan yesterday! Absolutely blew me away!

Have a few questions regarding purchasing through my ltd company.

Regarding the 100% FYA. If company profits in year of acquisition are less than the total cost of the car can you spread the cost over two years to receive the full benefit? For example if company profits in 1st year are only 75k then I can only write off £14,250 in corp tax...but if the car costs 100k we could have written off 19k. Any way around this?

If I choose to buy using a 3 year PCP and plan to buy the car personally from the company at the end of the term, is this allowed? If so how will the price that I pay for the car be determined?

Regarding deposits for the PCP are there any positives/negatives to putting down a bigger deposit?

Any help/advice much appreciated.

Cheers!
 

Gogs

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I would suggest you talk to your accountant. I’m buying through my limited company, but HP agreement. At the end of the agreement the company will own the car. I’ll be writing it off over the term.
 


Lfcdan

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Hi guys,

New to the forum after test driving a beautiful Taycan yesterday! Absolutely blew me away!

Have a few questions regarding purchasing through my ltd company.

Regarding the 100% FYA. If company profits in year of acquisition are less than the total cost of the car can you spread the cost over two years to receive the full benefit? For example if company profits in 1st year are only 75k then I can only write off £14,250 in corp tax...but if the car costs 100k we could have written off 19k. Any way around this?

If I choose to buy using a 3 year PCP and plan to buy the car personally from the company at the end of the term, is this allowed? If so how will the price that I pay for the car be determined?

Regarding deposits for the PCP are there any positives/negatives to putting down a bigger deposit?

Any help/advice much appreciated.

Cheers!
welcome pal

I’m by no means an accountant but I’ll give you my opinions

regards FYA my understanding is that that it can be done over 2 financial years, but you can also choose to just do it each year
Don’t forget at the end of the PCP if you hand it back you will in theory have to pay 19% of the GFV back!
It’s only cash flow really

regards Buying /gifting the car after 3 yrs
I believe you would have to pay Income tax on the book value
I know our chartered accounts said that they have a book that shows what the value of cars is (I assume like Parker’s)
I’m interested in doing this myself that’s why I’m looking into the HP Over 5yrs route rather than PCP option
As it allows the car to decrease in value more

Deposits on PCP will lower the total interest a little bit and make the monthly payments more attractive
But most of the interest you pay on PCP seems to be the balloon!
If you are financing through Porsche it’s cheaper to pay for 5k miles per year and then pay excess miles rather than pay 10k pa, on mine it was about £3.5k to do it this way

as I’ve said these are only my opinions and I’m sure there are people on the Forum far more qualified than me who I hope can help
 

Squarecircle

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100% FYA are use it or lose it in the accounting period of acquisition. You cant split it as such. You can claim say 60% and then leave the balance for future periods. The subsequent claim would only be at 18% of the remaining 40% (standard writing down allowance) and then 18% of the remaining 32.8% for the next period and so on, so I would not advise doing that.

If you do claim 100% and it creates a loss, this loss can be carried forward to off-set against the future profits or carried back against last years profits. This would be the route to take and should result in a tax refund on the earlier year, assuming you have profits in the prior year.

With buying the car out at the end, you have to purchase it from the company at the market value of the car at the date you want to buy it out. Any lower than market value you get a tax charge on the difference which usually works out more costly than say, taking a dividend to buy it out.

We dont have a price guide on cars but most use Parkers or any other pricing website. Some clients like to be aggressive with pricing and use the 'low' valuation that webuyanycar quotes.... their choice and risk albeit its fairly low risk IMHO.
 


Sonic

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For anyone else that is interested - Metro Bank are offering 2.11% with £150 fee. Got to be the way to fund if buying via company at these sorts of rates (unless the GFV via dealer is out of this world).

The quote i've just got is 2.36% flat rate which works out to be about 4.6% APR over 3 years - Lombard are coming in at about 4% APR.
 

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Hi there,

I came across this thread and it has been a most informative read. I wonder if I may be so bold as to revive it and take a slight detour? It is sort of related...

There have been alot of comments by people running their own Ltd Co. I will be ordering a Taycan in the next couple of months and buying it outright through my Ltd Co. (I am the sole director). Having never bought a car through the company before, I was wondering what type of insurance one requires given that the owner of the vehicle is the company and I am an employee being allowed to drive it, as it were. Is there some kind of business insurance I would need? Does the company insure it? or do I? or both or...? I am very confused.com

Would appreciate your advice. Many thanks!
 

Sonic

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Hi there,

I came across this thread and it has been a most informative read. I wonder if I may be so bold as to revive it and take a slight detour? It is sort of related...

There have been alot of comments by people running their own Ltd Co. I will be ordering a Taycan in the next couple of months and buying it outright through my Ltd Co. (I am the sole director). Having never bought a car through the company before, I was wondering what type of insurance one requires given that the owner of the vehicle is the company and I am an employee being allowed to drive it, as it were. Is there some kind of business insurance I would need? Does the company insure it? or do I? or both or...? I am very confused.com

Would appreciate your advice. Many thanks!
I'm assuming you don't have a broker you use currently who you can inquire with?

You clearly want to be able to use it for both personal and business use and milage, so that's the policy you're after. Where do you plan to park it?

As for whether it's personal vs a business policy, business is usually more expensive, but much more effienct to have the business pay for the policy ;)

Personally, i have all my vehicles on a single policy with a broker, and the Taycan will be added to the same policy, parked at home, but invoiced to the business given it's a business car for business use, but which will allow me to use it personally and fully insured.
 

Badfoot

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I'm assuming you don't have a broker you use currently who you can inquire with?

You clearly want to be able to use it for both personal and business use and milage, so that's the policy you're after. Where do you plan to park it?

As for whether it's personal vs a business policy, business is usually more expensive, but much more effienct to have the business pay for the policy ;)

Personally, i have all my vehicles on a single policy with a broker, and the Taycan will be added to the same policy, parked at home, but invoiced to the business given it's a business car for business use, but which will allow me to use it personally and fully insured.
Thanks for the reply! Interesting.

I could do with finding a decent broker. I will get googling. Of course, if you have any recommendations you'd be prepared to share that would be most appreciated!
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