Lease car for new company

[quintain]

Hi.

I hope not to rambling of a question.
I need to consider leasing a smallish car for my sister who will assist my wife and I in our self build development.
www.floshmeadowsselfbuild.co.uk
The development has 47 self build serviced plots, with OPP supported by Homes England and NaCSBA.
We expect/hope to market the site in spring 2024.
We live in a low house value area being north west Cumbria - Cumberland (since April 2023) CA23 3DT, we are imagining about £100k (++ -) for each plot.
Somewhere about £4.7m return less tax and costs of about £1.3m

We could sell the development at present to a local major house builder who has offered about £1.25m++

We prefer/wish to sell to prospective self builders to build their family homes and are expecting a lot of return BUT at present everything is being paid out with no returns expected for about 12 months.

OKAY that is the background AND I am not claiming poverty.

(Eventually) MY QUESTION
What is the best - cheapest leasehold car company for me to approach for our need for a smallish car.
I am not a knowledgeable car person.

 

[Jameshow]

Dacia Sandero I expect.

Nissan juke is supprisingly cheap..

 

[SLM]

There are good tax incentives for electric company cars, so that might be worth exploring with your accountant, along with whether this will be a company car etc

 

[Blackswanwood]

Your best bet would be to use one of the comparison sites such as Carwow or Leaseloco.

Looks like and interesting project.

 

[Ollie78]

Just buy a little van, you can claim the vat back and flog it at the end of the project.
Electric and hybrid incentives may also apply.

Ollie

 

[Richard_C]

The VAT treatment will be of interest, not sure of current rules. Ask an accountant. I ran the car policy for a biggish employer 20+ years ago, policy not the operation. We ended up owning the vehicles because the penalties for early return etc were huge. It's all about the money. The lease companies look at the difference between buying and forecast selling, that's why you see so many Mercs and BMWs about, expensive car + low depreciation about the same as cheaper car worth nothing after 4 years. You also need to think about her personal tax bill, bik and all that. Lese companies can borrow money much cheaper than you or I which is why they can do deals which look good. GM in the USA makes more money from it's finance/lease business than from building cars.

For minimum cost and being in control you might buy new or recent pre owned and sell at the end. That way of the project drags on or ends early you aren't stuck with the remains of a lease. Compared with the financing of a project this size, 18 or 20k for a small car may not be significant. It might even be better end to end for the employee to buy the car and claim 45p mile, the amap rate, no tax worries.

Interesting project, has more 'social value' than a normal development. Difficult times though, base rate expected by some to go to 6% so mortgages may go to above that. Looks likely to stay high for many months and even years, as most houses are bought (and built) mostly on the back of loans the real cost to the occupant is 3x what it was pre Trussonomics. I had a mortgage in the 70s when we had 15%, but inflation was high and some years we had wage push inflation so pay went up faster than prices. The mortgage debt, in real terms, "inflated away" pretty quickly. My first mortgage was about 2x my salary, after 3 years it was unchanged but only 1.25x my salary.

Different today, wages not keeping up, I wish you well but be prepared for a slow take up as people worry. I wonder if lenders (to the self builders) will swing to extreme risk aversion.

 

[quintain]

Thank you all to date..a bunch of sensible suggestions; especially Blackswanwood with Carwow or Leaseloco. I have never heard of those.

 

[quintain]

The VAT treatment will be of interest, not sure of current rules. Ask an accountant. I ran the car policy for a biggish employer 20+ years ago, policy not the operation. We ended up owning the vehicles because the penalties for early return etc were huge. It's all about the money. The lease companies look at the difference between buying and forecast selling, that's why you see so many Mercs and BMWs about, expensive car + low depreciation about the same as cheaper car worth nothing after 4 years. You also need to think about her personal tax bill, bik and all that. Lese companies can borrow money much cheaper than you or I which is why they can do deals which look good. GM in the USA makes more money from it's finance/lease business than from building cars.

For minimum cost and being in control you might buy new or recent pre owned and sell at the end. That way of the project drags on or ends early you aren't stuck with the remains of a lease. Compared with the financing of a project this size, 18 or 20k for a small car may not be significant. It might even be better end to end for the employee to buy the car and claim 45p mile, the amap rate, no tax worries.

Interesting project, has more 'social value' than a normal development. Difficult times though, base rate expected by some to go to 6% so mortgages may go to above that. Looks likely to stay high for many months and even years, as most houses are bought (and built) mostly on the back of loans the real cost to the occupant is 3x what it was pre Trussonomics. I had a mortgage in the 70s when we had 15%, but inflation was high and some years we had wage push inflation so pay went up faster than prices. The mortgage debt, in real terms, "inflated away" pretty quickly. My first mortgage was about 2x my salary, after 3 years it was unchanged but only 1.25x my salary.

Different today, wages not keeping up, I wish you well but be prepared for a slow take up as people worry. I wonder if lenders (to the self builders) will swing to extreme risk aversion.

Thanks Richard C ...a lot of good info and possible predictions which I support. Just my bl**dy luck to get the planning eventually (almost) sorted and Truss etc etc occurs.

 

[NewbieRaf]

Please come do something like this down in Hampshire I would be a customer

 

[John on the Wirral]

When doing any lease deals shop around. I once had a quote of £110 for a car but another dealer came in at £350 for an identical car. "Have another coffee while I see the manager" He quickly returned and matched the deal even then I managed to screw extras from him. It's all about figures and what he gives for your deposit car or what you lay down as your deposit. Good luck! PS;- I am now on my third PCP and have always managed to best Honest Johns or What Car recommendations

 

[Jameshow]

Please come do something like this down in Hampshire I would be a customer

I used to live in a similar development, built late 70s, great group of older guys who were always ready to help a young un...!!