Company Car leasing

[States]

I need to get a new car soon and was looking to get advice on a leasing option. Is there an advantage to leasing over buying when it comes to company cars?
Thanks in advance for your help.

 

[RainyDay]

Are you asking about advantages from the employee's point of view or from the company's point of view?

 

[States]

Both in fact. I am a director of my own company, so the car would be for me.

 

[Brendan Burgess]

Hi States

Leasing is expensive and inflexible. People tend to want to change their cars before the lease term expires and are stuck with the leasing company.

Just buy a car with a bank loan and pay it off when you can afford to.

It also makes sense to buy the car yourself and charge the company for mileage rather than buy it within the company and face all the tax complications.

Brendan

 

[States]

Thanks Brendan for the advice.

 

[wheeler]

What if most of the car mileage is for personal use.. is buying the car yourself still the best option?

 

[bazermc]

Both in fact. I am a director of my own company, so the car would be for me.

If the car costs more than €23K the lease payments (that qualify for a tax deduction) are restricted, as follows:

List price - 23,000
______________________ x Leasing Expenses
List Price