I have been asked for advice about the availability of capital allowances on a new electric car. (I have the impression that the salesman is trying to push the capital allowances angle to clinch the deal.) The vehicle will qualify for 100% first year allowance if this is a purchase but I am wary. The purchase by a limited company is being financed through a Private Car Purchase agreement with a substantial deposit (39.5% of cost) followed by 36 monthly payments and then a final large sum (36% of the original cost). In addition there is a clause in the agreement whereby the company may appoint the dealer to sell the vehicle rather than pay that final sum. Any advice will be much appreciated.
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In the good old days the terms used were hire purchase and contract hire.
Contract determines the rules for tax.
is the balloon end payment clients choice to sell?
It's a purchase - ask the dealer (depending on finance co) to put it on a Contract Purchase which is the same arrangement for businesses.