Car leasing - experiences?

Car_54

https://forums.moneysavingexpert.com/discussion/comment/82156582#Comment_82156582

but VED is paid by the registered keeper, who is not necessarily the owner.

paul_c123

https://forums.moneysavingexpert.com/discussion/comment/82157477#Comment_82157477

Was it an Agility lease? There was a legal ruling on these, surrounding the definition of a lease, it might be why Mercedes put the lessee as the registered keeper on the V5 unlike other firms. Here is a reminder of the case:

2. The HMRC v. Mercedes VAT Lease Case (Historical Landmark)If you are thinking of a ruling specifically focused on the definition of a lease, you are likely remembering the famous Court of Justice of the European Union (CJEU) case (Commissioners for Her Majesty's Revenue & Customs v Mercedes-Benz Financial Services UK Ltd). [1]

• The Dispute: HMRC argued that Mercedes' popular "Agility" lease-style agreements (which give customers the option to buy the car at the end via a optional final balloon payment) should be treated as a "supply of goods", meaning all VAT had to be paid upfront. Mercedes argued it was a "supply of services", meaning VAT should only be charged on each monthly instalment. [1, 2]
• The Ruling: The court ruled in favour of Mercedes. It decided that a lease agreement is only a supply of goods if purchasing the car at the end is the only economically rational choice. Because Mercedes customers genuinely had the choice to walk away, it was classified as a service, offering massive cash-flow advantages to leasees and the automotive industry. [1, 2, 3, 4, 5]

Arunmor

https://forums.moneysavingexpert.com/discussion/comment/82157552#Comment_82157552

No it wasn't that. The car would have been an 07 plate and the first thing I knew about it being my resposibilty was the VED demand through the post. Of course I should have been more alert, I suspect all the advice on places like this said VED was covered by the company. I learnt a lesson that day.