best method of buying a car

[cleo1]

any idea of the best method of buying a car

1- bank loan ?

2- finance ?

3- i work for myself sole trader any advantages with that.?

4- maybe leasing a car ?

[Loosehead]

5 - Save up and buy a car

[andy-hughes]

A bank loan is always prfereable to finnance, but if you are using the car for business, leasing may be an option for tax advantages. Best to speak to your accountant who will know your individual circumstances, and can advise you properly.

[spaced]

i would say save up, 2nd best is definately leasing. Either on a finance lease (as a sole trader) or on a PCP (Personal Contract Purchase) which is done through you and not a business.

Then again, I used to work in leasing, and am now a fleet manager, so my answer may be slightly biased.

forget bank loan. With leasing you can also get a maintenance agreement where tyres, etc etc are covered.

look at www.lvl.co.uk or www.bvrla.co.uk.

If you are going to lease, go with LEX or Leaseplan...please please please stay away from Arval. If you need any contacts let me know.

[cleo1]

thanks for all your answers, i would gladly save up but not many people have a spare �10k.

so they are tax advantages with leasing sounds good to me.

thanks

[sammd]

First choice - save up

Personally, i'd go for an online bank loan rather than a highstreet bank - try Cahoot, they're the cheapest i found.

[cleo1]

so by leasing a car the payments can be deducted from my tax bill at the end if year?

[Loosehead]

Yes but from a personal taxation point of view, it will be deemed a perk and you will have to negotiate the full horror of the company car taxation system. Essentially you will have to log all your business milage and you will be taxed accordingly. For example if you do 2000 business miles a year it will be taxed mostly as a perk, if however you do 20000 business miles a year it will be deemed as a business tool but it will still be taxed a little. Most companies do not bother with company cars at all these days because of the hassle with company car rules. My own employer for example just pays a car allowance and that's taxed as income, so much simpler. It may be beneficial in your own case depending mainly of whether a car is a vital tool for whatever you do or whether it's just a nice to have perk. Best discuss with any accountant and I'm sure they will advise the optimium course. You can avoid all that though by having a van, now that can be anything that consitutes a van, for example a mate of mine runs a gym and he has a "van", It's actually a jeep with the back windows filled in but that counts.

[Eels]

Whatever you decide, DON'T go for the dealership finance option. I did this - to my cost - and it's expensive, inflexible, and a nightmare if your situation changes.

If you do borrow to buy the car, get a decent loan.

I have a nice Polo for sale ...!