leasing your van

[mike007]

Buy a van all day long, 2k is plenty of money for a good van that can last u for 10 years if your willing to look after and maintain it ?

Look at a Ford Transit mk6s (2000-2006) plenty of these vans about.. thats how good they are. Find one thats been well looked after and hasnt been abused and it can be a good workhorse for u.

Good luck

And you are not going to do loads of miles per year normally working as a Windie

 

[Iron Giant]

of course i can......as long as ive got a buyer for the van at the end of the lease it doesnt matter who i sell it to and me buying it back is just the same as me buying another second hand van after leasing a van for 5 years....

I'd cherish those phone calls with your missus as you will only get one a day, but seriously I wouldn't risk HMRC coming after me and my wife just to save some money and hassle and end up with us both getting a criminal record that's a whole load of trouble to put your family through.

 

[harunh]

im quite sure ill be fine....we all bend the rules now and again dont we??

100% mate , dont take peoples opinions on here to seriously ??

 

[harunh]

And you are not going to do loads of miles per year normally working as a Windie

I bought a Transit 2004 reg for £1200 2 years ago... had 80k on the clock...  its now got 96k , drives like a dream and i can see it lasting me for another 10 years ? when u lift the bonnet up u can see how good of a runnner the van is , mileage is nothing aslong as u look after it and service it properly

 

[wezza13]

im gonna sell my van to my girlfriend next year when the 5 year contract comes to an end(business finance lease)for £7,500,pay the balloon which is £7k then buy it back off her a few weeks later.....

its not the cheapest way of owning my leased van..it will have cost me around £20k altogether but itll only have 17k on the clock and at least another 7 or 8 years of life left in it....

4 years ago my old vans oil pump went and seized my engine on the 4th jan...within a month i had a brand new van on my drive and didnt pay a penny for a month.....its an easy way of getting a new van if you dont want to shell out any money you have saved up.......

I've just spoken (couple of days ago) to my lease company (Vanarama + LEX Autolease) and found out that I have to sell the van within three months of the contract ending!! The way I understood it was that I paid a monthly sum for 5 years (which ends this December) and then I pay the final balloon payment, which is about £2500, and keep the vehicle at the end of it. When speaking to them on the phone they assured me that I don't get to keep the van and I have to sell it. "What if I don't get a buyer within three months" I said. They said that I would go on a rolling monthly contract until it's sold. It's a load of bull locks and I wouldn't have taken it out, had I'd known.

 

[dazmond]

I've just spoken (couple of days ago) to my lease company (Vanarama + LEX Autolease) and found out that I have to sell the van within three months of the contract ending!! The way I understood it was that I paid a monthly sum for 5 years (which ends this December) and then I pay the final balloon payment, which is about £2500, and keep the vehicle at the end of it. When speaking to them on the phone they assured me that I don't get to keep the van and I have to sell it. "What if I don't get a buyer within three months" I said. They said that I would go on a rolling monthly contract until it's sold. It's a load of bull locks and I wouldn't have taken it out, had I'd known.

That's it in a nutshell mate!

1.i find a buyer(my girlfriend!)

2.she buys the van

3.i pay the balloon payment 

4.end of contract

5.i then buy the van off my girlfriend once she has the logbooks,etc.

6.the van is now mine

 

[dazmond]

I don’t get why you are doing that? Why don’t you just use the money you are going to use to buy the van back just to pay the ballon payment off? 

Because if I dont sell the van I cant get out of the lease contract....once I sell it and pay the balloon the contract ends...

I then buy the van off my girlfriend once she gets the logbooks....

The van is now mine.....??

 

[spruce]

You can write the full amount off in the first year or depreciate it at 18% per annum. The 18% is on current book value not on purchase price.

Write Down Allowance was done away with a few years ago. Now its Annual Investment Allowance.

 

[Part Timer]

Well you learn something new every day, even after paying the balloon payment you still have to pay a nominal ongoing fee ?

https://www.nationwidevehiclecontracts.co.uk/guides/business-leasing/finance-lease#:~:text=At the end of the lease%2C the vehicle,to the finance company. Finance lease case studies

 

[spruce]

I don’t get why you are doing that? Why don’t you just use the money you are going to use to buy the van back just to pay the ballon payment off? 

Because the finance house will not allow him to register the van in his name when he completes the lease. By law they have to ensure and then prove that the new owner doesn't have anything to do with @dazmond's business if investigated - that is not a tax fraud. They will want to know the exact details of the new owner the van is being sold to and what this person intends to do with it. They will also ask what the relationship is between the 2 parties. Its all got to be logged in case of a future investigation by the tax authorities.

Bear in mind that there aren't that many finance houses. It pretty easy for the receiver to ask for lists of sole traders/small business as these would be the ones most likely to flaunt the rules.

 

[dazmond]

Well you learn something new every day, even after paying the balloon payment you still have to pay a nominal ongoing fee ?

Finance Lease Explained - Nationwide Vehicle Contracts

its called a peppercorn rental.....the only way you can get out of it is to sell the van,pay the balloon and then its end of contract....

always read the small print......

ive just ordered a brand new golf GTD DSG on a 3 year lease contract hire as my present GTD contract ends in a few months.....it should get delivered within 8 weeks

 

[dazmond]

Because the finance house will not allow him to register the van in his name. By law they have to ensure and then prove that the new owner doesn't have anything to do with @dazmond's business - that is not a tax fraud. They will want to know the exact details of the new owner the van is being sold to and what this person intends to do with it. Its all got to be logged.

but once its been sold they wont keep tabs on who owns it 6 months from the date of sale.....itll be consigned to history!

 

[Part Timer]

Write Down Allowance was done away with a few years ago. Now its Annual Investment Allowance.

Mine is being written down by 18% a year rather than in one go. If I'd written it off in full we wouldn't have earned enough to use our full tax allowance as I claimed the full value of the new kit inside it.

 

[ched999uk]

but once its been sold they wont keep tabs on who owns it 6 months from the date of sale.....itll be consigned to history!

You are probably right but DVLA will have a record it was registered to a finance company, was sold and then within a few weeks sold again and who to. Doesn't take much effort for them to pass the info on to HMRC!!! 

 

[Part Timer]

its called a peppercorn rental.....the only way you can get out of it is to sell the van,pay the balloon and then its end of contract....

always read the small print......

ive just ordered a brand new golf GTD DSG on a 3 year lease contract hire as my present GTD contract ends in a few months.....it should get delivered within 8 weeks

I pay cash for all of my vehicles, don't like people making money out of me in this way.

 

[spruce]

Well you learn something new every day, even after paying the balloon payment you still have to pay a nominal ongoing fee ?

Finance Lease Explained - Nationwide Vehicle Contracts

If you are talking about a nominal monthly or annual rental then that's probably the only way he can continue to use his van legally. After the final payment is made he can opt for a peppercorn rental and continue to use the van. However, the van will still be registered in the name of the finance house.  @dazmond will never own it as those are the leasing rules. These rules were in force long before I started in the motor trade in 1998 and haven't changed since then.

 

[dazmond]

You are probably right but DVLA will have a record it was registered to a finance company, was sold and then within a few weeks sold again and who to. Doesn't take much effort for them to pass the info on to HMRC!!! 

you worry too much ....your supposed to care less as you get older!i probably wont buy it back straight away...ill leave it for a while.....its hardly crime of the century!

 

[ched999uk]

you worry too much ....your supposed to care less as you get older!i probably wont buy it back straight away...ill leave it for a while.....its hardly crime of the century!

You are almost right. I do get hung up on rules way too much. ?

I would be very very surprised if you get caught. At least you now have a better idea of the rules. 

I always prefer to know rules so I can make an informed decision ?

 

[Master Jedi Alejandro]

its called a peppercorn rental.....the only way you can get out of it is to sell the van,pay the balloon and then its end of contract....

always read the small print......

ive just ordered a brand new golf GTD DSG on a 3 year lease contract hire as my present GTD contract ends in a few months.....it should get delivered within 8 weeks

Nice! The new Golf’s look cracking though I’m not sold on the touch sensitive buttons. You’ll need to let us know how it’s going ?

 

[dazmond]

Nice! The new Golf’s look cracking though I’m not sold on the touch sensitive buttons. You’ll need to let us know how it’s going ?

i love the GTDs.......i also used to have a mark 5 GTI.......ive never had an automatic so i thought id try one...i can also fit my drum kit in the boot with the seats down no problem but i wont be playing any gigs anytime soon with this ruddy virus about!

 

[Part Timer]

If you are talking about a nominal monthly or annual rental then that's probably the only way he can continue to use his van legally. After the final payment is made he can opt for a peppercorn rental and continue to use the van. However, the van will still be registered in the name of the finance house.  @dazmond will never own it as those are the leasing rules. These rules were in force long before I started in the motor trade in 1998 and haven't changed since then.

As I said, never got involved with any type of car finance. I had a company car for the first 10 years of driving, family business, and have paid cash for everything after that. Just thought that after the balloon payment you owned the vehicle, I now know you don't.