Jump to content
House Price Crash Forum

Archived

This topic is now archived and is closed to further replies.

Patfig

Car Or Van Contract Hire

Recommended Posts

Hi All

I am wondering if anyone has the lowdown on business vehicle contract hire. We are currenlty spending 2 to 2.5K per annum on hire cars and train fares and it is growing.

I am therefore thinking we should look at contract hire of a vehicle. We are a ltd compnay and VAT registered.

A car or van would suffice and we would likley do 10K or slightly less per annum.

I am unaware of the rules and ins and outs and am hoping some of you guys may already do this.

I dont plan on uisng the vehicle for private use but I guess it may happen at some point. It would be a pool car and ultimately at the disposal of the other directors although I would be the main user.

Any pointers appreciated and if anyome knows of any good deals ( petrol) that too would be good.

Cheers

PF

Share this post


Link to post
Share on other sites

Hi All

I am wondering if anyone has the lowdown on business vehicle contract hire.

PF

No! I have never done it! I just usually buy a cheap car! Lease can be good for business reasons, but I am not an accountant! Still it looks good to clients if you don't turn up in something that was made when "The Sweeney" was hot on television! ;)

Share this post


Link to post
Share on other sites

Leasing can make sense if you need to keep capex down and opex isn't so much of a problem. On the other hand a nicely signwritten vehicle conveys a sense of commitment whereas a 'white van' with a magnetic vynl sign shouts fly by night.

Share this post


Link to post
Share on other sites

Leasing can make sense if you need to keep capex down and opex isn't so much of a problem. On the other hand a nicely signwritten vehicle conveys a sense of commitment whereas a 'white van' with a magnetic vynl sign shouts fly by night.

I have seen some pretty convincing magnetic vynl signs on friends vans. You've seen the problem, I've seen this problem and someone wise has found a solution.

Share this post


Link to post
Share on other sites

Hi All

I am wondering if anyone has the lowdown on business vehicle contract hire. We are currenlty spending 2 to 2.5K per annum on hire cars and train fares and it is growing.

I am therefore thinking we should look at contract hire of a vehicle. We are a ltd compnay and VAT registered.

A car or van would suffice and we would likley do 10K or slightly less per annum.

I am unaware of the rules and ins and outs and am hoping some of you guys may already do this.

I dont plan on uisng the vehicle for private use but I guess it may happen at some point. It would be a pool car and ultimately at the disposal of the other directors although I would be the main user.

Any pointers appreciated and if anyome knows of any good deals ( petrol) that too would be good.

Cheers

PF

Cheap deal, Skoda Citgo, 10k miles/annum, 3 years lease at £97/month.

http://www.lingscars.com/Skoda/CitiGo/1812350-1.0_MPI_%2860bhp%29_S_Hatchback_3dr_999cc.html#models

52mpg realworld average for the 1.0 manual:

http://www.honestjohn.co.uk/realmpg/skoda/citigo-2012

3 year deal means ~£1,200 per annum lease costs.

10k miles means ~200 gallons of fuel = ~£1,200

Skoda do a service plan for 3 years for £499, say that's all the maintenance it needs.

So before insurance you're already at 15% more than you currently spend, and that's renting a very small car.

If it's a purely money saving measure, I think you'll struggle to travel 10k miles in a car for what you are spending on travel at the moment. Perhaps there is accounting subtleties that can drive the cost lower still, but in essence it seems quite clear cut. I'm no expert though.

Share this post


Link to post
Share on other sites

Cheap deal, Skoda Citgo, 10k miles/annum, 3 years lease at £97/month.

http://www.lingscars.com/Skoda/CitiGo/1812350-1.0_MPI_%2860bhp%29_S_Hatchback_3dr_999cc.html#models

52mpg realworld average for the 1.0 manual:

http://www.honestjohn.co.uk/realmpg/skoda/citigo-2012

3 year deal means ~£1,200 per annum lease costs.

10k miles means ~200 gallons of fuel = ~£1,200

Skoda do a service plan for 3 years for £499, say that's all the maintenance it needs.

So before insurance you're already at 15% more than you currently spend, and that's renting a very small car.

If it's a purely money saving measure, I think you'll struggle to travel 10k miles in a car for what you are spending on travel at the moment. Perhaps there is accounting subtleties that can drive the cost lower still, but in essence it seems quite clear cut. I'm no expert though.

Thanks Cheez n Breed

It would mean that I had access to a car at all times and would actually spend more tme out of the ofifce when currently it becomes a bit of an expedition

Share this post


Link to post
Share on other sites

Thanks Cheez n Breed

It would mean that I had access to a car at all times and would actually spend more tme out of the ofifce when currently it becomes a bit of an expedition

No bother. I'd suggest you'd need to budget in the region of 40p per mile for all-in costs of leasing over 10k miles and on a three-year lease, even for something tiny. As you say the extra convenience would save a lot of hassles which is worth something. I'm by no means well versed on any allowances and offsets which may apply on your books though.

Share this post


Link to post
Share on other sites

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 243 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.