Clean It Up

UK Floor Cleaning Forum => Carpet Cleaning Forum => Topic started by: Ian Gourlay on October 18, 2004, 09:37:35 pm

Title: Lease or Buy
Post by: Ian Gourlay on October 18, 2004, 09:37:35 pm

If you want some up to date kit or a new van,

Or expanding and putting an extra team in the field.

Do you lease or buy?

Title: Re: Lease or Buy
Post by: lee_gundry on October 19, 2004, 04:18:21 pm

buy

but i guess leasing is better on the cash flow.

Lee G

Title: Re: Lease or Buy
Post by: Ken Wainwright on October 19, 2004, 04:46:56 pm

I believe that leasing is a no no if you are not V.A.T. registered.

Safe and happy expansion :)
Ken

Title: Re: Lease or Buy
Post by: Dave_Lee on October 19, 2004, 06:06:31 pm

I am buying my van on HP but I am leasing my TM. When I investigated the monthly payment rates for each item, I found there was hardly, if any difference between lease and purchase.
However, tax wise,  you can of course claim capital allowances straight away on purchases, whereas with leasing you can only claim against the monthly instalments as expenses.
Some say one is better than the other, Im not sure, at the end of the day if theres much difference.
I believe that when leasing a van you have to pay all the vat up front, and obviously if you are not registered you cannot claim it back, with a machine, when you lease you pay vat on each monthly payment.
Dave.

Title: Re: Lease or Buy
Post by: martin19842 on October 19, 2004, 07:34:33 pm

one of the arguments is whether you want the items 'on balance sheet' or 'off balance sheet' you can always buy then do a sale and leaseback.

with regard to vans, we tend to contract hire, then monthly cost appears against P and L and you have a new vehicle every X number of years.

the advice being that the depeciation on vans is so much that after x number of years van in reality is worth £xxxxx and in reality it is worth £zzzzz..

just some advice there.

regards

martin