Lease
Hi,
just joined this thread, as I am trying to extract myself from 4 year commercial car lease. Essentially all information here is correct. It makes total sense from tax point of view for self-employed people, but less so for PAYE. You can't 'claim' the vat, but about 50% of the 'net' cost of the monthly lease payments can be offset in your tax return.
The monthly cost depends on the value of the car, the annual mileage you agree and whether or not you include service/repairs in the monthly figure.
I took out a 4 year lease on a 159 Alfa Romeo Sportivo. Monthly fee is €585 (inc vat), based on 12k miles per annum. I did not take out 'service' as part of the agreement, as the first two years were covered by the manufacture's warranty.
The bank 'own' the car at the end of lease period, so there is no BIK involved.
I am currently looking for someone to 'take over' the remaining 19 months of my lease, as I am emigrating.
If not, I have to pay the bank for the remaining 19 payments and, of course, hand back the car.
You can, 'buy' the car from the bank at the end of the lease, if you wish.
If anyone knows of where I can advertise for someone to take over a lease, would be greatly appreciated.