Rob
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Post by Rob on Oct 29, 2023 15:04:15 GMT
Lease companies rarely offer cars at a decent price at the end of the lease. And yet they will then probably just sell through an auction.
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WDB
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Post by WDB on Oct 29, 2023 15:36:06 GMT
I bought my S60 two years into its scheduled three as a company car. Price was decent then, considering it was a car I knew all about. And I kept it another ten years, so a few hundred either way got thoroughly diluted. But that’s a long time ago now.
Still favouring the nearly-new route until more data emerges.
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Post by EspadaIII on Oct 29, 2023 16:06:46 GMT
Isn't there some tax reason why you can't buy your company lease car at a sensible price? Something to do with being a possible sham HP agreement which means not enough tax has been paid??
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bpg
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Post by bpg on Oct 29, 2023 16:11:45 GMT
It's effectively an interest free loan which could be perceived as BiK.
It's why you can buy a private car at the end of PCP (interest paid) v personal lease (no interest paid, gets the monthlies down). There is a workaround though, get your employer to buy it and charge you a nominal admin fee, say £1,500.
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Post by EspadaIII on Oct 30, 2023 11:27:41 GMT
Ah - useful to know - thanks.
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WDB
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Post by WDB on Oct 30, 2023 11:54:37 GMT
Don’t think it’s correct, though. Arval’s site refers to its own Driver Purchase Scheme — although it’s for purchasing a car, not a driver. It promises ‘competitive pricing’, a ‘fast and simple process’ and even a six-month warranty.
I don’t see any element of an interest-free loan in the deal. The lease rate will be based on depreciation, maintenance, consumables, insurance and interest on all of the above. The car after the lease period will be financially the same as any other — a four-year-old asset with a fair market value.
The tax benefit of paying the lease out of pre-tax income is counterbalanced by the requirement to pay tax on the value of the car as a BIK. (That bit dates from 2017; salary-sacrifice leases before then were exempt.) That BIK rate is set low for EVs as an incentive to adoption, and means that nobody takes the notional alternative option of paying tax on the salary sacrificed. So after the lease expires, all tax obligations are satisfied and the lease company is entitled to offer the user first refusal on the car.
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bpg
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Post by bpg on Oct 30, 2023 12:26:56 GMT
Of course UK business tax arrangements will be different, it's how I got around my recent issue with KIA.
I had a car on a three year lease. The supplying dealer had used some financial trickery to get the monthly number down which meant I could not buy the car directly at the end. The supplying dealer was out of the picture due to their servicing and customer service ineptitude. Our friendly small family run dealership (unconnected third party) agreed to buy the car and supply it to us for the final payment price we had agreed to at the start of lease plus a small admin fee for the paperwork.
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WDB
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Post by WDB on Mar 19, 2024 14:14:50 GMT
The Polestar 4 has appeared in the listings. Reasonably affordable too — similar in monthly terms to an iX3. Intriguing!
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Post by Alanović on Mar 19, 2024 15:33:27 GMT
It's behind you.
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