Car finance suitable for business use?

20vt-rs

Hi all,


I'm coming out of a company car scheme and looking into getting a car on a PCP and using a car allowance instead. I am most of the way there and looking at applying for a PCP from a dealer.


However, reading the small print it states "You must not use the vehicle for business purposes (other than for travelling to and from work) during the term of this agreement".


Presumably this PCP I have been offered isn't suitable, or does this mean that the PCP shouldn't be used by a business direct for their fleet of cars?


Anyone come across this before?
Thanks...

jonesMUFCforever

It would help if you could tell us what you are going to be using the car for?

20vt-rs

jonesMUFCforever wrote: »

It would help if you could tell us what you are going to be using the car for?

Well I am coming off the company car scheme onto an allowance, so the car will be used for trips on company business and also as my personal car...

jonesMUFCforever

Doing what though? Sorry to be pedantic - will you be carrying any stock etc for your company or just commuting?


(Financial advisor by any chance for the Scottish lady?)

20vt-rs

jonesMUFCforever wrote: »

Doing what though? Sorry to be pedantic - will you be carrying any stock etc for your company or just commuting?


(Financial advisor by any chance for the Scottish lady?)

Commuting to and from my place of work (office), plus trips to various offices around the UK and customer locations for meetings. Very occasionally I may carry a small item(s) of equipment but it is small IT based equipment.

I'm not sure it would make much difference what I'm doing though, any trips outside my normal place of work on business is not commuting?

iolanthe07

trips to various offices around the UK and customer locations for meetings.

You're quite clearly going to use the car for business purposes, other than commuting, so you will breach the terms of the contract. The best thing would be to contact the PCP company and discuss it with them They will have come across this before and will probably be quite accommodating - but you need to be up front with them.

Herzlos

There's a different class if you're carrying goods i.e. a courier, but it sounds as if you're just visiting customers with tools.

20vt-rs

Yes it is definitely business use, I have actually queried this and they have said it's actually saying that I can't use the car as a taxi or for running a business (e.g hiring out etc). Travelling to various work locations is fine and classed as private use. Got it in writing too...

iolanthe07

Travelling to various work locations is fine and classed as private use

Well, you learn something new every day. All those years I paid extra for business use for doing just what the OP is................

20vt-rs

iolanthe07 wrote: »

Travelling to various work locations is fine and classed as private use

Well, you learn something new every day. All those years I paid extra for business use for doing just what the OP is................

I guess different finance houses may have different views, but the guys who are financing the car for me have confirmed this. They did say however that the car must be insured for business use, which of course it will...