[Ben Peters]

after reading some recent posts about buying or leasing a van, im still deciding on which van to go for am currently in a 02 hi ace that is just about hanging in there its tested till march so have bit time yet, what i want to no is there any benefit leasing a van was sort of told the monthly payments are deducted from your tax bill or something? say if i was going to spend 7-8k on a fresh van? i have the cash to buy straight but can i save in the long run buy leasing

[AuRavelling79]

Although I'd check tax issues - especially if I was VAT registered I think lease purchase is the best opion out of leasing/buying "on the drip". If you've gotta wedge then that should give you the best deal but not always if buying new because garages and manufacturers sometimes offer very low finance deals to attract the business.

[Ian101]

I used to sell lease and contract hire when in motor trade.

Before you decide if to lease or buy you need to decide whether you want to own the van after the finance period has finished.

however 9 times out of 10 - and speak to your accountant to confirm this - it is more tax efficient not to own the van at the end so lease is  way foward especially if your VAT registered.

If you take a lease then once all payments have been made inc any ballon/residual payment at the end then you can have a peppercorn rental which is a yearly rental and approx the equivalent of 1 monthly payment.

If you decide you dont want to have a peppercorn rental and fancy a new van then you have to sell it to a third party i.e. PX it to a dealer and the finance copmpany will take ..... from memory about 15% of the selling price.

[JSMC]

I used to sell lease and contract hire when in motor trade.

Before you decide if to lease or buy you need to decide whether you want to own the van after the finance period has finished.

however 9 times out of 10 - and speak to your accountant to confirm this - it is more tax efficient not to own the van at the end so lease is  way foward especially if your VAT registered.

If you take a lease then once all payments have been made inc any ballon/residual payment at the end then you can have a peppercorn rental which is a yearly rental and approx the equivalent of 1 monthly payment.

If you decide you dont want to have a peppercorn rental and fancy a new van then you have to sell it to a third party i.e. PX it to a dealer and the finance copmpany will take ..... from memory about 15% of the selling price.

and if yee nor VAt registered?

[Ian101]

you can still have a lease and just swallow vat

this not as daft as it sounds cos if you buy a van outright you will also be paying vat on the price except by buying outright you will pay all the vat in 1 go and be unable to claim it back.

if you lease a van the dealer sells it to the lease company who claim vat back as its their van then charge you payment + VAT

e.g.

£15000 van would be £3000 vat on top

same van on a 4 year lease would be approx £171+vat so vat is £34 x 48 =£1632

try these people http://www.nationwidevehiclecontracts.co.uk/Peugeot_Partner-L1_16_HDi_90_850_S-30388.htm

[Ian101]

of course there will be a final payment of about £4000 on this deal I rekon so another £800 vat hiding away there to pay

plus deposit is another £120 of vat as well

so all balances out near enough