Personal or business loan for car?

kcmatt

Hi

I wonder whether anyone could help. My partner is in the process of buying a new car and we are unsure as to whether it would be better to take out a personal loan or a business loan for this?

My partner claimed the 40p a mile way last year but only does around 8,000 miles a year, so maybe claiming the interest as a business loan would be better? Car is costing £7,500.

Any help would be really appreciated.

Thank you!!

Karen

kcmatt

Can anyone help?

~Brock~

Am I right to assume that your partner is self employed?

AverageJoe_4

As far as I can tell, the method in which you purchase it makes no difference to how that product is classed. Ultimately, if you buy something for a business, then it can and should be set against your business accounts etc.. the fact that it was a "business" loan or any other for that matter has no impact. However, for a bank to lend you money as s business loan, they will want a business plan and model on how your business can repay them their money, all sorts of paperwork etc.. and the rates would be silly.

All the bank is doing is lending you the money to buy a product. If you buy that product for business use, it makes no difference.

AJ

kcmatt

Thanks, that's a lot clearer!