Clean It Up
UK Floor Cleaning Forum => Carpet Cleaning Forum => Topic started by: clive ware on January 13, 2012, 05:57:33 pm
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Going to buy a new van in the next couple of months. I was going to do the usual part ex, stick a couple of grand towards it and pay the rest on hp but keep reading about contract hire anyone here doing it or know about it. Just wondered if there any benefits over buying. Obviously, you get the usual depreciation buy buying but this is offset buy the ammount of tax you can save with such a large expense. Also, if I did lease it, I`m not sure if I`d be aloud to whack a great big truckmount in the back!!
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Clive
When you are looking at the costs of leasing remember there are mileage charges if you go over the contacted agreement.
Jim
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Clive,
Hire purchase means the van is an asset, you can claim tax relief on the interest charged, as well as depreciation. You can pretty much do what you want with the van, except sell it before the finance is settled. You're liable for all servicing & maintenance costs (that aren't included in the warranty, albeit they are also tax deductable) At the end of the term, it's up to you to dispose of the van, or keep running it for as long as you want.
Contract hire means the van is a liability - you can claim tax relief on the monthly payments. They normally work on a 3+35 month basis (35 monthly payment, 3 monthly payments up front) but this can vary - check with the dealer. Also, they'll normally quote on approx 10k miles p.a. but obviously if your mileage is higher or lower, you should ask for a personalised quote. With contract hire (and also sometimes with hire purchase) you can add the cost of a service plan - which can be setup to include scheduled services, tyres, and any other consumables. Road tax is also included in the cost (normally). At the end of the term, the van goes back to the hire company and you take a new one (the upside being that your van is always under warranty) - if the condition is not congruent with the age & mileage, they can charge you to put it right.
Hope that helps :)
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Nope.............you lost me!!
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Thanks for that- very detailed reply. Far too detailed for that numpty above to understand! ;D I still think I`ll probably buy the van on HP. As you say not only can I claim the cost of the van back but also the depreciation.
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Cash for me wife rolling in it ;)
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Thanks for that- very detailed reply. Far too detailed for that numpty above to understand! ;D I still think I`ll probably buy the van on HP. As you say not only can I claim the cost of the van back but also the depreciation.
Almost! You can claim back the INTEREST on the monthly payments, and the depreciation. You can't claim the cost of the van because it's still an asset to the company.
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;D ;D