lease or buy? (car for driving tuition)

mark_walsh

i am a driving instructor, and i am in the market for a new car, but not sure wheather to lease form a hire company that deals with instructors, or buy from the main dealer
i have been told that if i took a 5 year term finance from main dealer that after 2.5 years i can effectivly hand it back with no come back credit wise etc.
how tru is this, and is it really workable?

from a tax point of view which is better for my bussiness? and why?

thanks for looking.
mark

Savvy_Sue

Welcome.

Do you have an accountant, and what do they say about this? because the answer may well be "it depends ..."

mark_walsh

no accountant, i have done my own books since i became an accountant, but its been simple stuff. but i dont know how the car will change things (always been franchised so car was never an issue)

chalkie99

If you take the car on a Hire Purchase deal the general rule is that you can hand the car back when you have made 50% of the payments, known as Voluntary Termination or "VT".

You need to hand the car back in good condition and make sure you follow the correct procedures as outlined in the agreement.

Your credit file may be marked to show you had done this and although it's not a black mark on your record it "might" deter the finance company from doing a similar deal in the future.