Own or lease?

Own or lease?

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Currently I am paid a monthly allownace and a mileage rate for business use. I provide the car and have a loan for it, I insure it and maintain it and tax it (road fund).

I have the opportunity to go on to contract car hire, where my employer pays some of the annual contract fee and if I choose a car that does not exceed this value, I make no contributions. My monthly allowance stops and I get a much lower business mileage rate. I can also choose a more expensive car and make contributions to the cost.

The car of choice would involve me making contributions of about £380 per month, and I have to insure it, although it is fully maintained and road fund tax is covered.

I have considered aspects such as the depreciation on my current car, the loan repayments and the interest, plus the maintenance and servicing costs as outgoings, compared to income of motnhly allowance and higher mileage rate as opposed to the pure outgoing of the contribution for the lease car.

Are there any other factors I need to consider?

As far as tax is concerned, I believe that I am exempt from the normal rules, as the car is used for emergency fire service use and is fitted with service radio, blue lights, siren etc...Can anyone confirm this aspect please?

At the moment, I seem to make the sums add up as I want them too - sometimes in favour of the lease and then if I get scared of the monthly contributions, agianst the lease!

I really need some advice on how to make an impartial decision on which route to take.

Any help gratefully received.

Thanks

Jon
Jon Roberts

Replies (2)

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By neileg
10th Jan 2006 10:01

A few ideas
Choosing a car is rarely an unemotional decision, otherwise we'd all drive something cheap but reliable!

You seem to have assembled all the facts, after that it's personal choice.

You observation about the blue lights, etc, is a good guide but this has to be backed up with no personal use. If you use it for private use other than home to work, I think you get caught, anyway.

I don't understand how you can insure the car since it will be on your employer's contract. Perhaps you mean you will have to pay the cost of your employer insuring it.

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By tomtrainer
10th Jan 2006 09:34

Charges on high mileage
Don't leasing companies normally charge more if you do high mileage?

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