Leasing a car

blt

Hello,

For various reasons, I'm thinking that I am going to lease a car as opposed to buying. The one I'm going to go for is the Hyundai ix35 in cream (diesel) - the "Style" version.

Can someone explain to me why business lease prices are so much cheaper? I'm thinking now of hanging on a little while longer as DH and I are starting a small business later on in the year......would we be able to get a business rate then?

Sorry if there is some glaringly obvious answer to this question.

At the moment I'm looking at going with Lings Cars on a 3 year contract.

Thank you for your help ladies and gents

MX5huggy

VAT is not included in the business price.

blt

Aha! Thank you! So 20% on top. Thank you. So for me it wouldn't make a difference would it? I couldn't get a business contract as I do pay VAT - is that right?

Ectophile

Large businesses don't have to pay VAT on things they buy as they are VAT registered.

Many small businesses aren't VAT registered, and do have to pay VAT. If that's the case, then you need to add VAT to the business price quoted.

neilmcl

Ectophile wrote: »

Large businesses don't have to pay VAT on things they buy as they are VAT registered.

Many small businesses aren't VAT registered, and do have to pay VAT. If that's the case, then you need to add VAT to the business price quoted.

All businesses will pay VAT. The difference being that VAT registered businesses can claim this back, or rather offset the VAT of purchases against VAT sales.

bluesnake

last time I looked 1 out of 5 Ltd did not stop trading within in 2 years.

Hope all goes well, but if not, whom will be left paying this monster off?

You want to change/transfer ownership 6 month in, possibly to a party with limited liability?