Car leasing

[Nordic]

Its new company car time again, and it has been suggested that I opt out and provide my own.

This will save the tax on the car and petrol that I currenty pay and also means I would have a greater choice.

There are suggestions that I lease the car, does anyone do this and have any tips for things that I need to look out for?

[rcutler]

Speak to Mr Zarse I believe he has leased a few cars in the past few years.

[Andy Zarse]

Thanks Rick.

Nordic, it's a good idea provided it fits in with your circumstances. I'm no expert but you really need to speak to Graham Hill (no not the Matra driving LM winner!) at GHA down in Burgess Hill. The man is a walking continent of common sense. Here's his website, nobody knows more about it than him.

http://www.carfinanceandleasinginfo.co.uk/

Here's what he says on his blog on the subject of comapny v's private car opt out schemes:-

If you are about to provide drivers with cash for cars or you are an employee who is being offered a cash alternative to your company car think carefully before making the decision. In a surprise move just before Christmas Her Majesty's Customs and Excise announced an earlier than expected review of employee car ownership schemes as a result of findings that suggested (as I have done on many occasions) that when you provide employees with a relatively free hand to choose their own car after providing a cash alternative to the company car they choose either older or bigger cars increasing their per capita CO2 emissions and thereby harming the environment more than company car drivers. The findings suggest that cash for car drivers emit on average 20g/km more CO2 than average company cars. The industry has complained and questioned the figures but they are unlikely to be listened to by the Revenue. The review is being rushed through in time for the Budget and that is when we may see some major changes to the ECOS (employee car ownership schemes) as well as the generous tax and NI free allowance of 40 pence per mile for the first 10,000 company miles per annum, something that makes cash for cars very beneficial for employees. The likelihood is that the changes may well take immediate effect which could land employees with a huge tax increase suddenly making company cars much more attractive so my recommendation is to either stick with company cars wherever possible or try to hold back until we have more of an idea as to what the Revenue and the Government's intentions are. Bought my book yet? If not and you want to learn more about personal vs business funding of cars used for business then you should buy a copy. It even explains how you can finance a car through the business and still not pay benefit in kind tax!


In addition, the site below is an invaluable comparision tool to find the best prices on the market:-

http://www.contracthireandleasing.com/

Hope this is of some help.

[Nordic]

Very useful info, thanks.