DarkForce

Hi all,

I'm looking at getting a town runabout, and quite like the idea of contract hiring as it seems a good way to avoid any major bills and have a brand new car for not too much cash. Also it can be put through the company. Specifically I saw some good deals on Fiat Puntos - such as a 1.2 Active Sport with comes with alloys, elec windows etc etc for about £90+ VAT a month over 2 years. Including the deposit this works out to be about £2400 over the course of the 2 years, which would probably be a lot less than the cost if I actually bought it. So my questions are;

Is there any catches I'm missing out on, apart from the fact i'll never own it?

It would be going through a LTD company that I have, so I believe I can claim half the VAT back on the rentals and 100% on the maintanence. Is this correct? Also, can you write off the rentals against taxable profit?

If it went through this company, would I then have to pay Company Car tax on it?

Any good sites on-line for other prices, or companies people can recommend?

Can't think of any more questions at the moment, but I'm sure they'll come to me!

Thanks for any advice in advance,

Chris

Chrisgr31

My Scoob is on contract hire, and not out through a company. I came to the conclusion that in view of the depreciation it was actually potentially cheaper than keeping my 2001 car. Mainly due tot he mileage I do. With the old car I was £380 a month on the loan, it was 2 1/2 yrs old and had done 60,000 miles. I decided that in another 2 years it would have done over 100,000 miles, and could well have had some serious bills. So got the current one on a contract, can do 30,000 miles a year and inc VAT it costs me £380 a month.

I pay for the servicing as decided thatit would cost less than £100 a month to service it!

R1916v

My stepdad has a 53 palte WRX SL and is contract hiring.

We worked out after taking depreciation and what he could claim back by running it thorugh his company it was stupidly cheap for that type of car.

He has it for two years, think he pays 380 or 400 a month. Take off what he can claim back tax wise and depreciation and it works out quite cheap.