What should i do

« **on:** June 19, 2013, 12:40:46 am »

Am not VAT registered! van has cost me £850 this month alone! in repairs. AM NOT HAPPY.
should i lease a van? or only if am vat registered!

« **Reply #1 on:** June 19, 2013, 06:06:12 am »

Suggest you speak to your accountant first however I will be leasing a new van in the near future

My reasons are low deposit normally 3 payments up front

100 % tax deductable so for every £100 paid I will be saving £20 in tax relief

hopefully no big repair bills or mot's

sell my current van for cash

i used to sell lease and contract hire so im comfortable with the concept and know ways around excess mileage charges / fines for poor condition etc - not dodgy neither ways include pepeercorn rental / selling to a 3rd party ... all legal

however having said all that cant beat having no payments on a cheap van owned outright bought for cash

« **Reply #2 on:** June 19, 2013, 08:05:52 am »

Great response Neil! Thanks am intrigued about these bits of knowledge on contract hire u know. Ill be coming back to you in about 3 years for advise.

« **Reply #3 on:** June 19, 2013, 08:14:48 am »

repair bills are a real downer. clutch went on my van recently and i got a mobile mechanic to do it-but the stupid oaf got bogged down and yeh it had a new clutch now but it ran awful with a smoke trail - oh you will be allrite he says - gerroutta here u dildo

with my back to the wall i had to get down n dirty and sort it all out and alls well now

its took a yr off my life tho ,the stress

hopefully now ur vans fixed you too will start smilin agen fellah

« **Reply #4 on:** June 19, 2013, 08:31:40 am »

on top of all this my well known "friend of mecanic" ripped me off salt to the wounds! upset about that

« **Reply #5 on:** June 19, 2013, 10:54:12 am »

buy new, 3 year warranty any problems its sorted and your not out of pocket, some good deals on new vans, look after it and sell it when your done and buy new again,

or lease and basically pay for a new van then hand it back when you've finished paying for it and your left with nothing

« **Reply #6 on:** June 19, 2013, 02:14:28 pm »

Scribble understand what your saying about buy new. But if ya sell and buy after 3 years ain't just the same as leasing....cost wise. And lease is 100% tax deductible

« **Reply #7 on:** June 19, 2013, 02:21:24 pm »

Buying is 100% tax deductible.

You also have a capital worth after 3 years if you but it.

« **Reply #8 on:** June 19, 2013, 03:46:15 pm »

Quote from: chanster00 on June 19, 2013, 02:14:28 pm

Scribble understand what your saying about buy new. But if ya sell and buy after 3 years ain't just the same as leasing....cost wise. And lease is 100% tax deductible

defo not, my brand new van was 12k, after 3 years its gonna be worth 6k still, wether or not i decide to sell i dont know,

but if you lease a van, i could of and it was offered to me, i got offered the same van as i bought and after all the lease payments it totalled up to basically 12k but then i would have had to hand the van back over being left with nothing,

with buying the van it still goes all through the books,

leasing is just hiring a van, it aint yours.

there are some cheap brand new vans about if you look

http://www.ebay.co.uk/itm/0000-Fiat-Doblo-MAXI-1-6-LWB-16V-SX-VAN-L2-H1-Diesel-White-Manual-/251265616098?pt=UK_Commercial_Trucks&hash=item3a809908e2

http://www.ebay.co.uk/itm/2013-RENAULT-TRAFIC-Trafic-SL27-Dci-115-/370829283477?pt=UK_Commercial_Trucks&hash=item565725d095

http://www.ebay.co.uk/itm/Fiat-Scudo-VAN-L1h1-1-6-Multijet-Comfort-90-in-White-/360512113770?pt=UK_Commercial_Trucks&hash=item53f0324c6a

« **Reply #9 on:** June 19, 2013, 03:49:33 pm »

I prefer to own my vehicles.

« **Reply #10 on:** June 19, 2013, 06:29:57 pm »

Quote from: Soapy Souter on June 19, 2013, 03:49:33 pm

I prefer to own my vehicles.

+1 my fleet are mine.

« **Reply #11 on:** June 19, 2013, 07:45:28 pm »

So would I if I had defenders. What a hero I love it

« **Reply #12 on:** June 19, 2013, 07:55:51 pm »

I've just got a brand new transit on a lease. Best thing I've done. 100% deductible and if I do want to buy it then I still get a good deal if not they give me market price so I still may have some money in it to cover a deposit. I leased at deposit of 825 and then 47 payments of 275 or I could buy at deposit of 2k and then 420 a month

« **Reply #13 on:** June 19, 2013, 08:04:29 pm »

Quote from: Ste M on June 19, 2013, 07:55:51 pm

I've just got a brand new transit on a lease. Best thing I've done. 100% deductible and if I do want to buy it then I still get a good deal if not they give me market price so I still may have some money in it to cover a deposit. I leased at deposit of 825 and then 47 payments of 275 or I could buy at deposit of 2k and then 420 a month

so your paying £13750 to hire a van? i bought my van brand new for less than that, no finance cash purchase

« **Reply #14 on:** June 19, 2013, 08:05:51 pm »

Alright Ste did u get a custom, or trend? Are they any good

« **Reply #15 on:** June 19, 2013, 08:20:03 pm »

The rules have changed as regards tax on purchasing vans now you can count the entire purchase of a van against the business profits by means of AIA (Annual Investment Allowance). Buying a van and leasing a van are of a similar cost but at the end you have 2 very different results, with one you end up with a van the other you don't.

Simon.

« **Reply #16 on:** June 19, 2013, 08:21:15 pm »

My accountant said I can only claim 20% each year

« **Reply #17 on:** June 19, 2013, 08:33:02 pm »

That'll be because your actual costs are spread over 5 years.

« **Reply #18 on:** June 19, 2013, 09:06:05 pm »

Quote from: Scrimble on June 19, 2013, 08:04:29 pm

Quote from: Ste M on June 19, 2013, 07:55:51 pm
I've just got a brand new transit on a lease. Best thing I've done. 100% deductible and if I do want to buy it then I still get a good deal if not they give me market price so I still may have some money in it to cover a deposit. I leased at deposit of 825 and then 47 payments of 275 or I could buy at deposit of 2k and then 420 a month

so your paying £13750 to hire a van? i bought my van brand new for less than that, no finance cash purchase

If he buys the van it will cost him £21740 over 4 years
If leases the van it costs £13750 over 4 years.

By leasing he saves £7990
Then 4 years servicing and consumables lets say another £1000.
Then its 100% tax deductible a owned new van is considered an asset so you can only claim for
a percentage.
At the end of 4 years is he any worse off.

« **Reply #19 on:** June 19, 2013, 09:25:02 pm »

Quote from: John on June 19, 2013, 09:06:05 pm

Quote from: Scrimble on June 19, 2013, 08:04:29 pm
Quote from: Ste M on June 19, 2013, 07:55:51 pm
I've just got a brand new transit on a lease. Best thing I've done. 100% deductible and if I do want to buy it then I still get a good deal if not they give me market price so I still may have some money in it to cover a deposit. I leased at deposit of 825 and then 47 payments of 275 or I could buy at deposit of 2k and then 420 a month

+1
so your paying £13750 to hire a van? i bought my van brand new for less than that, no finance cash purchase

If he buys the van it will cost him £21740 over 4 years
If leases the van it costs £13750 over 4 years.

By leasing he saves £7990
Then 4 years servicing and consumables lets say another £1000.
Then its 100% tax deductible a owned new van is considered an asset so you can only claim for
a percentage.
At the end of 4 years is he any worse off.

Poll

Lease or buy a van