Finance or Lease hire

[Steve Bullman]

Im thinking ahead a little towards my next vehicle, interested to hear the pros and cons for each of these options, also particularly with regards lease hire, what are the pitfalls i should look out for.

finally....is contract hire the same as lease hire?

[christreeroot]

I have just gone through al this steve, that many options on that many vehicles is way to stressfull - i was only looking for a small van, ended up buying used for cash - trying think ahead to next year if this recession hits.....

 

I worked out that in our game you realy want to own the vehice at the end as it wil get a good beating and damaged, i had a hilux on contract hire and was scared stiff of it even getting a scratch as i know they fleece you for any damage, before it went back to the contract hire company i put it in to a bodywork company to have scratches etc sorted out.....

 

 

If you buy in the near future you can get some very good deals on anything that isnt a small van....

 

So to some up a long winded answer you really need to own at the end of the contract or have the option to buy in our less that vehicle friendly industry..

[volvo]

Had a chat with my accountant (as you do) about this on thurs and he advises if you can afford it buy it outright.I think if you were needing a fleet it would be different story as you can send them back ,with a penalty or would depend on your agreement.

[Dean Lofthouse]

If you own the vehicle you will also be allowed depreciation against your tax, it may be a fair old lump with the new system ??

[skyhuck]

If you lease I think you can 100% against tax each month!.

[Arborlord]

Lease monthly payments are a business tax loss.

 

If you own depreciation yes but when you sell you loose 20% of the value as its classed as a business asset.

 

The pro of leasing is get it now pay for it over time

 

The pro of owning is you own it no payments

 

The cons of lease recession looming id steer well clear unless your very safe in work

 

The cons of owning you have to maintain it and it will depreciate But its a straight tax loss.

[Mesterh]

If you lease I think you can 100% against tax each month!.

 

I've heard that too.

 

The main prob leasing something is that your gonna get stung for all the damage when you take it back

[conkers]

just come out of one finance deal and moving to another.

Was lease purchase and was very simple but I know there are large financial penalties if things go wrong, like poor work load and you cannot keep up payments. They tend to pull your pants down when you hand it back!

 

Pickups and vans are easy to finance but it starts to get expensive to change modified vehicles like with high side tippers etc.You never get back the investment in the modification. So best to buy it at end of deal, and keep it till the wheels fall off.

 

I decided I want to be in Arb another 5 or 6 years so I have gone for new Lease purchase to see me through that time with hassle free motoring.

Old vehicles= less financial risk but don't forget to consider breakdown and down time if they fail.

Depends on your circumstances.

[skyhuck]

I've heard that too.

 

The main prob leasing something is that your gonna get stung for all the damage when you take it back

 

If you have good insurance, and are not a rough bugger, you should be able to keep the condition to fair ware and tare, IMO

[Mesterh]

and are not a rough bugger,

 

Thats my problem right there