Financing a new vehicle.. help

[Snoopy_inc]

Hi Everyone,

I am in the process of getting a new vehicle for my company. Our current vehicles are old and dying. I would like to find out what is the best route and way to finance. I would like to get your experience down here so that others like me wont have to plod along unknowingly and fall into the same traps/mistakes that a newbie in purchasing would when it comes to vehicle.

I am purchasing a 1 Ton 2 door Vehicle so i can claim the Vat through the business.

Any advise on : deposits, residuals ,lending rates etc would be greatly appriciated.

Thanks

[Dave A]

I'd recommend staying clear of residuals. Other than that, people have their preferences for different reasons.

There are three main options when it comes to financing:

• Financial lease
• Hire purchase
• Rental

Personally I prefer a financial lease. It does the best job of deferring tax payments, which is fine if you're not a public company or you're not planning to sell your business soon.

I'm going to set out my understanding of the different effects in the wiki, and when it comes to a financial lease I'm pretty confident the advice is good. I stand under correction on the effects of HP deals, though. It's a long time since I financed anything that way and my understanding could quite possibly be out of date.