Saturday, August 21, 2010

Van Leasing

Van leasing is generally refereed to as a "Finance Lease"This guide explains the main points of leasing


It is a method normally for companies that allows lower than normal monthly payments.



Small deposits. VAT does not hav have to be paid for upfront. Deposits range from just a few hundred pounds to most of the vehicle.
All deposits count as advance rental in the eyes of the TAX office and are 100% tax allowable as an expense
Generally the Govrment favours leasing for small business since all subsequent rentals are also 100% TAX efficient
Manufacturers favour Van leasing and the discounts are often greater to the customer as it protects the future second hand value.
At the end of the agreement it is time to sell the vehicle. There is usually a final payment at the end which is generally oly a small proportion of the vehicles value.
The customer gets to keep 95-98 % of any disposal profit.
The vehicle can be sold to whomever the customer pleases, but no further TAX relief may be claimed as 100% has already been given. Time to sell it really.
No inspection is done at the end for damage
No milage limits
If the vehicle is to do a super high milage, or you expect to damage the vehicle, you may want to consider paying more per month and reducing the final payment so there is not a shortfall. e.g a courier doing 1500 miles per week it is unlikely that the vehicle will be worth much after 4yrs.

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