Lease car (electric) thru ltd company - post april what are the options ?

**northernladuk** · 3 February 2020, 13:29

Cars through the company are a very moot point. Even the many questions about EV tend to have the reply 'don't bother' so I would have thought throwing in the cluster f**k that is going to happen next year then is something to be definitely avoided until the dust settles.

You get it through the company because it's more efficient at a time that is highly likely to mean you will have to take one of your exit strategies which could then cost you significantly more than getting it personally doesn't seem to make much sense.

At best I'd wait 6 months and re-asses the situation.

**CanPayButWouldRatherNot** · 3 February 2020, 17:21

have also forwarded him this post

https://www.contractoruk.com/forums/...ighlight=ipace

and his care is an ipace as well :-|

**WordIsBond** · 4 February 2020, 09:08

Originally posted by northernladuk View Post

Cars through the company are a very moot point. Even the many questions about EV tend to have the reply 'don't bother' so I would have thought throwing in the cluster f**k that is going to happen next year then is something to be definitely avoided until the dust settles.

This would be good advice if he didn't already have the lease, but since he does, it's not particularly helpful....

OP: This guy is thinking about buying one, so different situation, but perhaps some helpful discussion on some of the options here:
https://www.contractoruk.com/forums/...e-trading.html

My view: If your mate has the funds in his company, I'd probably keep it in the company and treat it as a BIK. The BIK will be minimal.

I am not an accountant so my view may be worthless.

**CanPayButWouldRatherNot** · 4 February 2020, 09:30

thanks for this and all info gratefully digested

**BolshieBastard** · 4 February 2020, 11:57

Originally posted by CanPayButWouldRatherNot View Post

Colleague at work has an electric lease car thru his PSC but now run into the paye road block post april so thought I'd ask you nice folks for him as he has thin skin.

I know a few folks on here have EV's on lease so what are you folks doing half way thru a lease and dealing with this same issue (post april PSC ban).

1. Ask the lease company nicely to switch it to personal (or just change the d/d account details)
2. hand the car back to the lease company and the psc can take the admin fee hit
3. ltd company pay the lease off and run it thru the ltd company as a BIK whilst you look for a mythical outside gig into 2020

/assumption/

he knows post april he cant claim expenses and will have to run this privately

he will also ask his accountant but not all accountants are made the same and you folks are actually more savvy and have real world examples

Lots of people do not appreciate or investigate the difference between PCP, HP and Lease. They just want to get their hands on a brand new car at the lowest price. There are differences especially when leasing that have implications for ownership and ending the lease early.

Depending on the lease, you may never own the vehicle nor have the right to buy it. If it was your intention to have this choice, you really should have gone the PCP route. Early termination of the lease may be very difficult or nigh on impossible and may cost as much as if you'd retained the car for the full term.

Handing any back vehicle that's on a PCP \ HP \ Lease early is not easy to do despite some no doubt saying it is. Any finance option ended early will very likely impact your credit score, even if the payer is your limited co.

You could just default but that would really hammer your credit record and may make the finance company harden their position to recover losses. Think agency when a contractor jumps ship mid contract or switches to a different agent at the same client only finance companies are far more litigeous about recovering their losses.

If you have paid over half the finance amount with a PCP or HP, you can do a VT or voluntary termination, hand the car back and walk away. Im not certain you can do a VT on a lease as these normally lock you in to pay the full amount even if you do not let it run the full term.

Doing a VT while 100% legal, will also be flagged on your credit record and could impact future finance applications.

To mix an old metaphor, buying a car in haste via your limited co, repent over its cost at leisure.

I think your mate's first job is to contact the lease company and ask how amenable they are to ending the lease early.

**Wobblyheed** · 6 February 2020, 09:56

Originally posted by BolshieBastard View Post

Lots of people do not appreciate or investigate the difference between PCP, HP and Lease. They just want to get their hands on a brand new car at the lowest price. There are differences especially when leasing that have implications for ownership and ending the lease early.

Depending on the lease, you may never own the vehicle nor have the right to buy it. If it was your intention to have this choice, you really should have gone the PCP route. Early termination of the lease may be very difficult or nigh on impossible and may cost as much as if you'd retained the car for the full term.

Handing any back vehicle that's on a PCP \ HP \ Lease early is not easy to do despite some no doubt saying it is. Any finance option ended early will very likely impact your credit score, even if the payer is your limited co.

I have done voluntary terminations on PCPs at least 10 times. It does not affect your credit score. If you've gone over your allowed miles (pro rata) you don't even have to pay it. They can ask but just ignore the request.

Lease car (electric) thru ltd company - post april what are the options ?