Anyone ever lease a car long term?

Chancer3001

My buddy is being given 800-900 per month by his new company to lease a car in ireland when he moves here.

Hes asked me to have a shop arund for him and see what his options look like as hes not in the country yet.

Wondering if anyone has any experience in this area?

Seems like that money could get any car he wanted really. Audi a5 is my own favourite looking car so ill just be recommending him that!

unless anyone has any insights

James Bond Junior

I was pricing up 3 series on the configurator last night and 800 a month would go a nice way. If R.O.R. drops into this thread, he could well have some good advice.

Damien360

Not sure if Leaseplan and the likes of those deal with private individuals. My Skoda superb is 640 a month with them on 4 year lease through my employer. Employer pays all costs including fuel and insurance after that. Leaseplan cover maintenance and tax.

If that is cash in lieu of him arranging everything then 800-900 will be pre-tax so approx half that will be available to him. Are fuel costs and insurance at his cost to be taken from that budget ?

If the company are arranging the lease and therefore the 800 is his allowance with with no other costs on him then he will have a large choice but will have to pay BIK on the car value and the figure to be paid each month depends on his mileage. See revenue site for this.

Chancer3001

wow ok, this is all good info. had never even considered BIK tax.

AFAIk tax, fuel, insurance all paid by them.

Also, AFAIK he can take the 850 and lease a banger for 100 quid and pocket the rest if desired.

bazz26

PM a user called R.O.R He works in this area and might be able to help you.

R.O.R

You need to find out if the €800 - €900 a month is a car allowance paid to the driver, and he has to lease a vehicle himself out of that, or if it's an allowance to go up to on a Company car, as it makes a huge difference.

It is possible to lease a car privately, but as Damien360 said, half of that allowance goes to the Tax man, so that leaves €400 - €450 a month, and unless you are willing to stick in a serious deposit/down payment, that's not going to get you much - Golf 1.0Tsi Comfortline 5dr is over €450 a month based on 20k per annum and 4 years, with no deposit! Then you've tax, maintenance, tyres, insurance and fuel to pay on top of that.

If it's an allowance to go against a lease, then it opens up a lot more options, but will be liable for BIK. What you'd get in budget very much depends on the annual mileage, whether it's 3 or 4 years and whether the budget is excluding VAT, or excluding recoverable VAT.

At 20k per year, €900 would comfortably get you in to a 520d SE Auto, including maintenance, tyres, tax and all VAT. Cost to the driver after tax etc. is around €615 a month in BIK (@30%; BIK for low mileage), but that is all he'd need to pay.

If it is a car allowance, there should be some stipulations as to what he can drive so he may not be able to get a banger. If the company are giving a car allowance, they have a duty of care to the driver while he's driving, the same as they do if they provide a car (so called "grey fleet").

If you or your buddy need any further info, send me a PM.

CrankyHaus

Isn't there 0% BIK for electric vehicles, at least until the next budget?