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Car finance for business vehicle

I'm planning on starting up a business and need a more "executive" car than the current rust bucket that I'm driving at the moment. As I'm new to business ownership I am wondering what the best way of purchasing a car would be.

Essentially I am likely going to drive a lot of miles so need something new(ish) and economical (diesel) which would be used for business mileage only (perhaps personal in an emergency?!).

Once registered for VAT I know that I am entitled to a discount, but was wondering how this works. Is the list price simply reduced by 20% or if I purchase a car on finance would the list price remain the same with discounts applied to the monthly rate. Are there any good deals for cars on business use from a particular manufacturer/dealer?

Any info will be met with great appreciation and probably a whole raft of other questions! Thanks in advance (I'll leave questions about claimimng back VAT on fuel for another time!)
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