Pick-up practicality

[Jonny69]

No, it works just like a loan. You pay monthly amount and at the end of the term it's yours. Advantage is it's tax deductable, and the vat if you are registered.

 

Hi,

 

I recently sold my M300 (7 months ago). The chipper was about a year into its Hire Purchase agreement. The machine new was 3489.36 + VAT and I paid the VAT of 610.64 as a deposit. Fixed rate agreement for 60 months at 70.38 per month (no vat added).

 

Just trying to work out where the contract lease part of it comes in and what it really means or if there is just another man in the middle taking a cut?

 

Thanks. Jonathan

[Treewarrior]

Hi,

 

I recently sold my M300 (7 months ago). The chipper was about a year into its Hire Purchase agreement. The machine new was 3489.36 + VAT and I paid the VAT of 610.64 as a deposit. Fixed rate agreement for 60 months at 70.38 per month (no vat added).

 

Just trying to work out where the contract lease part of it comes in and what it really means or if there is just another man in the middle taking a cut?

 

Thanks. Jonathan

If you had a loan you would only get tax deductable on the interest payment, lease is 100% deductable therefore sounds more but more tax allowance. Do you understand? come back to me if you don't and I'll try to help. It's all about trying to make the most of what you spend against what you earn.