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Vehicle contract hire?
- Thread starter ronnie63
- Start date
D
Deleted member 2463
They work out pretty good if you keep the spec of the car close to standard and aren’t worried about owning the car. Plus you pay almost nothing for servicing often road Tax is included too, sometimes even insurance. Car is registered to the leasing company.
The deal that’s super bad is PCP with a balloon.
Neil.
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The deal that’s super bad is PCP with a balloon.
Neil.
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Had our last three cars as a lease hire deal.
It’s obviously more expensive than buying outright but you don’t have the hassle of dealing with problems or getting shot of it at the end.
We do low milage though (less than 5k over 3 years). Plus I like being able to drive across London and park without giving a **** if someone runs into us
It’s obviously more expensive than buying outright but you don’t have the hassle of dealing with problems or getting shot of it at the end.
We do low milage though (less than 5k over 3 years). Plus I like being able to drive across London and park without giving a **** if someone runs into us
D
Deleted member 2463
That’s PCP and definitely to be avoided. Or very well understood.
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D
Deleted member 2463
Not always- you can make a lease deal better than the depreciation on a car if you shop wisely notably with cars where a new model is coming soon.
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So it should be PCH rather than PCP?
D
Deleted member 2463
They are often called confusing thing.
Leasing is usually called leasing. You never own the vehicle, sometimes called PCH.
Hiring is usually referred to Hire purchase, you own the vehicle
Personal contract purchase - you have a choice if you own the car, often has a balloon attached.
Nell.
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Leasing is usually called leasing. You never own the vehicle, sometimes called PCH.
Hiring is usually referred to Hire purchase, you own the vehicle
Personal contract purchase - you have a choice if you own the car, often has a balloon attached.
Nell.
Sent from my iPhone using Tapatalk Pro
At 30k miles per year, No chance for me unfortunately 
I was looking at getting a Tesla Model 3 on lease (PCH). I ran the numbers and after 2 years it would cost me £17,151 (£23,495 if I got the full self driving option). The broker that gave me the quotes also said that the company that provides finance (Leaseplan) would give me the option of extending the lease for a year, or a price to purchase the car. I was under the impression that PCH meant you never owned the car, you just rent it, but it seems that offering the car to sell to the customer at the end of the lease period, ala PCP, is not unusual.
I fail to see the catch here. The car I'm looking at costs £57,690 to buy. I would surely lose a reasonable amount in depreciation in 2 years, losing £17k or so doesn't sound beyond the realms of possibility. On PCH the finance company shoulders the burden of the luxury car tax too (£320 a year for years 2-6).
So... if I can buy the car at the end of the term on PCH, even though it's not the norm (but is), why would I buy outright?
The other factor playing on my mind of course is Brexit - both in terms of immediate price rises for the Tesla, but the ability for someone to buy the car off me if I wanted to sell it in 2 years (if I bought it outright).
I fail to see the catch here. The car I'm looking at costs £57,690 to buy. I would surely lose a reasonable amount in depreciation in 2 years, losing £17k or so doesn't sound beyond the realms of possibility. On PCH the finance company shoulders the burden of the luxury car tax too (£320 a year for years 2-6).
So... if I can buy the car at the end of the term on PCH, even though it's not the norm (but is), why would I buy outright?
The other factor playing on my mind of course is Brexit - both in terms of immediate price rises for the Tesla, but the ability for someone to buy the car off me if I wanted to sell it in 2 years (if I bought it outright).
D
Deleted member 2463
You have to be careful how you do that. There can be issues with VAT if done incorrectly. In effect they are ending the lease. Taking the car back and then selling it second hand.
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@Durzel you may have other options with an EV depending on your employment. You can salary sacrifice for EV cars through your employer (if they will do that) which might be a good option (lease scheme plus some pre-tax lease benefits saving at least NI contributions). It's not a bad scheme for the company either as they will save Employers NI (but have some run cost). If you have your own company, there are other options.
Yes I know, just saying that there are personal benefits through salary sacrifice (whether you can get a company car or not) for EV cars only, via your company. Just highlighting an alternative which is pegged to be tax efficient. Government drive to reduce emissions.
The depreciation on Tesla's is worth looking at too. When I was looking a year or two back there was practically no (or very little) depreciation on 2nd hand sales.
Bigger now. Expected value of Model S (£80k or so initial) is over 50% after 4 years (don't have the exact figures in front of me). Great value of you own a company though - you can write down first year tax on an EV on full value. No BIK from next year (Apr 20). No BIK on electricity either (fully company chargeable).
No worse than anything else (in fact a little better than the rest of the market), but not what it was when it first came out. Don't forget, they haven't been out forever, but 4 year old Tesla's appear to be holding value well.
