Van Leasing

nataliekara123

Hi.
Can anyone help me with this sticky situation.
I have got a chance to buy a company and run it for myself. The only problem is the van is on a lease contract. The lease is fully transferable but due to my poor credit history i cannot get the lease in my name. The lease company has told me that i need to register as a limited company in order for the van to be put in someone elses name and me to drive it. I have spent £180 making my company limited only to be told by the lease company that i can not have the lease. Does anyone know if they are telling me the truth??? First of all i dont understand why the lease cannot be taken out in someone elses name, surely it only matters who is insured in it. They have told me its Fruad (how????) Also is there anything I can do about them giving me totally false information and making waste £180 of my money and to loose the whole business.

I am very distressed. Any help with MUCH needed.

Flyboy152

nataliekara123 wrote: »

Hi.
Can anyone help me with this sticky situation.
I have got a chance to buy a company and run it for myself. The only problem is the van is on a lease contract. The lease is fully transferable but due to my poor credit history i cannot get the lease in my name. The lease company has told me that i need to register as a limited company in order for the van to be put in someone elses name and me to drive it. I have spent £180 making my company limited only to be told by the lease company that i can not have the lease. Does anyone know if they are telling me the truth??? First of all i dont understand why the lease cannot be taken out in someone elses name, surely it only matters who is insured in it. They have told me its Fruad (how????) Also is there anything I can do about them giving me totally false information and making waste £180 of my money and to loose the whole business.

I am very distressed. Any help with MUCH needed.

As far as "false" information is concerned, no. It is entirely possible that you misinterpreted what you were being told.

How many directors does the limited company have? Can any of those stand as guarantor? If there are no viable directors, can you add any?

nataliekara123

Hi, thanks for the reply. I know for definate i have not misinterpreted what has been said. The only director was my partner. It had to be worked like that as everything had to be in her name. Once she contacted the lease company they still said there was no way it could be done. In that case, how on earth does anybody get a chance at running their own business???

Flyboy152

nataliekara123 wrote: »

Hi, thanks for the reply. I know for definate i have not misinterpreted what has been said. The only director was my partner. It had to be worked like that as everything had to be in her name. Once she contacted the lease company they still said there was no way it could be done. In that case, how on earth does anybody get a chance at running their own business???

It is very difficult starting out in business, but it does get a bit easier as time goes by. The lease company obviously only leases to limited companies (some also insist that you are VAT registered) rather than sole traders. And this is where I think some confusion has arisen. The lease compnay could not accept a proposal from you as a sole trader, so you had to do it from a limited company. Only then could the lease company proceed with underwriting your lease application. Now, most lease companies (and when I say most, I mean the vast majority of them) will not underwrite a new start up limited company without a director's guarantee. Which means that if the company folds, at least they have an individual to set the liability against. I.e, someone to chase for the money. Is there no way that your partner can stand as guarantor? If not, would you consider taking on another director, who will give the lease company the guarantee?

nataliekara123

Sorry, maybe i am not making myself clear. My partner was standing as guarentor but they still said what we were doing was illegal.

Flyboy152

nataliekara123 wrote: »

Sorry, maybe i am not making myself clear. My partner was standing as guarentor but they still said what we were doing was illegal.

Then I have no idea what they are referring to. There is no "fraud," if the lease is in the name of the limited company and a director is standing as guarantor. There must be something missing in the interpretation, or the person you have talking with doesn't have a clue. Or you have inadvertently missed something out.

nataliekara123

I think the person i dealt with does not have a clue, or they are just fobbing me off. Is there any way of claiming the money back we have lost?

Flyboy152

nataliekara123 wrote: »

I think the person i dealt with does not have a clue, or they are just fobbing me off. Is there any way of claiming the money back we have lost?

No, there isn't.

I do not think they were fobbing you off. You cannot lease and register the vehicle in a company's, or individual's, name and have it used and insured by someone else; the lease company won't allow it. In that circumsatnce, the lease comapny is correct, it would be fraud.

Re-reading your OP, I really do think you have misunderstood what the lease company was telling you. The lease and the V5 has to be in the name of the limited company. If your credit history will not allow the lease company to accept you as guarantor, then you need to find someone else. You have already suggested that your partner could do this, would the lease company accepted her as guarantor?

Hammyman

nataliekara123 wrote: »

I think the person i dealt with does not have a clue, or they are just fobbing me off. Is there any way of claiming the money back we have lost?

You've not lost any money as you now have a Ltd company which is what you paid to set up. However you have stupidly rushed into doing it all and spent £180 setting up a Ltd company that you could have done for £40. There are no refunds for that.

WHITEVANMAN

nataliekara123 wrote: »

Hi.
Can anyone help me with this sticky situation.
I have got a chance to buy a company and run it for myself. The only problem is the van is on a lease contract. The lease is fully transferable but due to my poor credit history i cannot get the lease in my name. The lease company has told me that i need to register as a limited company in order for the van to be put in someone elses name and me to drive it. I have spent £180 making my company limited only to be told by the lease company that i can not have the lease. Does anyone know if they are telling me the truth??? First of all i dont understand why the lease cannot be taken out in someone elses name, surely it only matters who is insured in it. They have told me its Fruad (how????) Also is there anything I can do about them giving me totally false information and making waste £180 of my money and to loose the whole business.

I am very distressed. Any help with MUCH needed.

I have leased over a dozen vans or so using insurance for any named driver, my drivers had use, day and night of these vehicles, the lease companies usually are only concerened that sufficient insurance is in place and that payments can be made.
Providing that you can get someone onto the list of directors to act as applicant and guarantor to take over the lease, then you should have no problems, providing they have good credit history.

As for getting your costs back, not a hope, however dont forget to right it off against you taxes if you proceed.

nataliekara123

Hammyman wrote: »

You've not lost any money as you now have a Ltd company which is what you paid to set up. However you have stupidly rushed into doing it all and spent £180 setting up a Ltd company that you could have done for £40. There are no refunds for that.

Hammyman:: I dotn think i have stupidly done anything. I spent that £180 so it could go through the proper channels. This was done through my accountant.!!