Vehicle contract hire / personal contract purchase, etc...

I've seen some very good value Contract Lease deals around recently which are hard to ignore. Notwithstanding the understandable view that new cars are a huge waste of money...

...taking as a given that I prefer to drive a vehicle still within its warranty period and find buying used cars a big waste of time; selling my car a complete pain in the ass...

Couple this to the apparent expectation my existing and prospective clients seem to demonstrate that I should ferry them around in a reasonable motor. This combo leaves me needing a decent and pretty new motor.

These days I tend to looks at running a motor as more of a necessary service rather than a possession. As such I was wondering...

1. what people though of contract leasing vs personal contract purchase

2. whether it makes more tax sense to lease through my company (thus savig 50% VAT, but incurring taxable personal benefits)

3. what stupendous deals are around

4. alternative suggestions (bear in mind I walk to work and ride my bike more often than drive so both suggestions are already heeded).

Thoughts?

 

just choose a tax friendly diesel. BMW 320d anyone

 

I'm not after anything lavish as I wouldn't use it much, the 320d would be my first choice. The compelling deals tend to be petrol though. Eg. £321 per month for a 320d SE vs £245 for a 318i SE. Those are "personal" deals btw (inc. VAT). Seems a no brainer either way compared to getting a loan.

 

ok..

choice between lease and a purchase came down to mileage. Regularly go over about 20k per year? - the lease plans you will be offered will be crappy, vice versa too.. that's why I bought.

get in your own name, claim mileage back through company- worked out better value in this case. You can claim the VAT portion of the fuel if you're VAT registered too.

stupendous deals? - I bought my car about 2-3 months ago.. a lot will depend on if you're buying or leasing.

The best deal really depended on whether you wanted to lease or buy. Best Lease deal I saw was on a Lexus IS220 (their new baby diesel). Nice car BTW.

 

Thats a very good price for the beemer. As much as I hate BMWs (well the drivers really), I'm tempted at that price!

 

lexus Is 220d (thats the diesel.. about 48mpg).. for £239+vat

http://www.contracthireandleasing.c...asp?Start=1&VehicleType=0&Make=Lexus&Model=IS

a bit of googling might save more..

 

Yeah that's the search site I've been using. Whilst there are loads of rubbish deals there are a few that really stand out.

 

That's making sense. I doubt I'd exceed 10K per annum so I guess Contract Hire/Lease makes most sense for me.

 

Since it seems that your primary purpose for this car is driving other people in comfort (just my interpretation of your post), surely the car of choice is a Skoda Superb 2.5 V6 TDI at £220 per month? Back seat passengers in the 3 series or IS will feel distinctly short-changed... the superb competes with the S-class on interior space, makes the 3 series and IS look very mean on the kit list, etc. No, it's not a "sports saloon" like those others and won't drive like one. But I know which I'd rather be driven in.

 

I don't think it makes the IS look mean on the kit list.. but the 3 series ..definately!.

The IS comes with 6 speaker sound system (including sub) cruise control, I-pod jack, climate control etc all as standard..

 

...while the superb comes with bi-xenon lights, heated front and rear leather seats (electrically adjustable front with seat and mirror memory), 8-speaker 6CD changer system, sat nav and an umbrella.

 

an umbrella?!

 

Built in umbrella-holder in rear door... the compartment is even drained!

 

Another suggestion is the Volvo S60. I've driven a 2.0T (which is the bottom of the range, but still boasts a 180bhp turbo 5-pot) and it's a very nice drive. A bit more comfort orientated than the 3 or IS, but more of a sports saloon than the superb. Lease rates are similar, and the 2.4 D5 engine is supposed to be a good one (I'm no diesel fan personally).

On the subject of good diesels, the Accord i-CTDi is in range too, as are the petrol models. A bit roomier than the 3/IS/S60, but smaller and much more sporting than the superb. Comfy, good looking, reliable...

 

Certainly some interesting alternative suggestions. I'm no BMW 3 series fan personally, but 320d is a nice motor. In terms of clients it is virtually always just one, but my luck that pattern would change and the 3 series is no true saloon in the rear leg room stakes. The diesel Lexus IS presents a stronger case spec wise as does the Superb and I had no idea it rivals the S class for space. Crazy.

There's always the 520d SE with full leather at £340 (inc. VAT)!!!

 

Are you sure it rivals the new S class for space? I was in a new one last week (an S65AMG, awesome motor) and it is huge in the back. I dont believe the superb would get close...

 

Superb:

S:

Not a great deal in it I'd say. Yes, the LWB S is bigger, but we're talking 4 times as much money.

 

LOL, you can see from the pic that the superb has the seats all the way forward! If I was in the drivers seat there would be a lot less room in the back!

 

time for some test-drives me thinks!

For me, the decision came down not just to cost, but 'how do I feel in this car, does it make me feel good'? - no point spending the money if you don't appreciate the product you've bought IMO.

 

You're absolutely right. I'm not that fussed with whatever image a car might (or might not) project as long as it acts positively (ie. not ostentatiously) when seeing clients, I don't want to spend loads as I just won't drive it very much.

At some of these prices a vehicle as a "service" rather than a possession seems to make a lot of sense to me. More than it ever did before anyway.

Btw - from what I've read the Lexus IS diesel isn't great. Apparently the rear leg room, engine noise and ride aren't very good in context of the competition. Spec, handling and fuel efficiency are good though.