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Question: What is the best leasing option for a new business start up?

(Posted by: dh06111 on 2010-08-17 05:00:12)

I am setting up a new business soon and require a more economical car to use, currently driving a Mazda RX- 8, and need to know what is the best finance option on new cars. Would you recommend leasing a car through the business and reclaiming some of the VAT or going down the personal finance route? Any other suggestions are welcome!

Posted by: ANDYT on 2010-08-17, 05:06:07

I asked my Dad the same question a while back as he is a Chartered Accountant and I was considering doing the same thing. I can't remember the ins and outs, but basically if you purchase a car through the company it will be treated as a taxable perk. The bottom line is you're better off buying it using personal finance.

Posted by: Usman Niaz on 2010-08-17, 05:53:00

Congratulation!! That you are starting a new business. But i think you must have to utilize your investment or savings instead of leasing. Through leasing from any where you will capture by the huge amount of interest.

Posted by: responder5 on 2010-08-20, 01:41:01

As far as I remember, if you buy a car on business then you cannot use it for social/ personal use. So if you just use the car for business then that is the best option. If you want to use for both then it is not an ideal choice. Cheers