R32 Contract Hire

[jon_bousfield]

Hi Folks,

First post on TSN so treat me gently!! I've got to confess I've been lurking for a while now whilst trying to make my mind up what new motor to spend the hard earned on.

Having seen the pics and reviews on the new S3 I think its almost certainly going to be an R32 .

My question is this then. Does anyone here have their R on contract hire (either personal or business) who with and what does it cost?

[flintybob]

Given the residual is rather high after 3 years, why not buy it yourself? If you use it for business, you can also claim back tax relief on the business mileage via a P87. Makes sense

[jon_bousfield]

Cheers flintybob. I have always bought all my previous cars myself so am still considering this as an option. Difference this time around is that I now have a limited company so could put the contract hire through that and claim the VAT back and release the cash tied up in my current motor.

I'm sure it still works out a bit more expensive over the three years but the current government seem intent on taxing us off the roads which makes me a bit nervous about residuals on a 3.2 V6 lump three years down the road - even on a car as good as the R32!!

[Oli]

Remember putting it through the company that you will incure company car tax, which on car like the R32 will be quite high.

If you go to Whatcar.co.uk, they have a company car tax calculater where you can actually see what you will be paying - http://www.whatcar.com/company-car-tax.aspx

Buying the car and funding it yourself on a 'Personal Contract Purchase' scheme,which is finance with a balloon payment - very good for keeping your payments affordable, you personally fund the car and then claim back the mileage from your business, the first 10000 miles are 40 pence per mile and then 25p per mile there after, completely tax free! On a PCP arrangement, if after the term of ownership, the car has plummeted in value, very unlikely, you have an option to just give the car back to the finance company, however they are very good at setting these residuals so that you have a bit of colateral in the car so you can just part exchange and use this money towards your next car or just pay of the final balloon or refinance this balloon and keep the car

I hope this helps you

[R32North]

I have my own Ltd company (IT Contractor) and to date my accountant has advised against a company car due to hit I'd take on the tax, where as 40p per mile allowance makes more sense as a personal car.

[rs32]

[ QUOTE ]

I have my own Ltd company (IT Contractor) and to date my accountant has advised against a company car due to hit I'd take on the tax, where as 40p per mile allowance makes more sense as a personal car.

[/ QUOTE ]

ditto

[mb]

[ QUOTE ]

I have my own Ltd company (IT Contractor) and to date my accountant has advised against a company car due to hit I'd take on the tax, where as 40p per mile allowance makes more sense as a personal car.

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ditto

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And me - was told by owning it & claiming back the mileage even though I am paying this with taxed money I end up giving Gordon Brown less in the long run so went this way too

[Oli]

And its exactly how I do it

[nickekins]

Have a look at http://www.carselect.lloydstsb.com/AdvancedSearchNewCars.aspx

I have just got a fully loaded £32K R32 for £4.8k down and £530pcm. Backended mileage at 7.5ppm over 36months. only 6.2%APR and they take residual value risk.

More effective than the one I bought outright last December which has already lost a vast chunk of value...

[njc851]

It's each to their own, really is, I've leased my last few cars as they were bargains, impreza, a 200sx, and c320, but with the r32 the monthlys for lease were similar to buying it, so it was common sense for me.

As the chap above illustrates, the finance companies aren't daft - as long as his car's worth 8 grand after 3 years, then they win, and they get the extra mileage penalty.