View Full Version : Company vehicle, buy or lease?


craig12
23-02-2009, 17:06
in buisiness is it better to lease a van or buy one , or does a car have a advantage over a van for tax purposes , or visa versa, if leasing is the option does anyone know the cheapest place to lease a small van ?

dongle
23-02-2009, 18:30
depends on what mileage your doing,if its a lot and you intend to change every few years then contract hire may be the best idea,
if your vat registered then you can claim the vat back,
theres a company called freedom vehicle hire who are currently doing vw caddy vans for £129.99 plus vat per month based on 2 years and 10,000 miles per year
you will have to put 3 payments down followed by 23
or if youn want to buy one i have a renault master 2002 reg 120,000 miles fsh looking for £2600

ChrisTodd
23-02-2009, 20:51
A van is better for tax purposes than a car.

You can claim the VAT on the purchase of a van, but not a car.

If you lease a van you can also claim the VAT on the lease payments, but you can only claim 50% of the VAT on car rentals if there is private use.

From an overall tax point of view there is no real difference in the tax allowances you can claim if you buy or lease.

The main difference is the timing of the tax relief.

If you by a van you might be able to claim all of the price you pay against your profit in the year of purchase.

But if you do that you have no allowances left to claim for the rest of the van's life.

If you lease you get a fixed amount of tax relief each year.

Overall, over say 4 years, the tax relief would however be very similar between buying and leasing.

So the buy or lease decision comes down to personal preference.

If you lease you can generally get a better vehicle for your money compared with buying.

But you always have to pay or you lose the vehicle.

If you buy, even on finance, at some point the vehicle will be paid for and will be yours.

Although it might not have much resale value at least if it still runs you have a vehicle bought and paid for.

craig12
24-02-2009, 05:35
thanks chris, very helpfull

willman
24-02-2009, 06:32
Albion Vehicle Contracts - supply vans from £25 a week.