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Contract car leasing versus PCP sole trader?

  • 24-11-2018 12:04PM
    #1
    drunkmonkey
    Registered Users, Registered Users 2 Posts: 28,324 ✭✭✭✭


    Which is the way to go for a new car..

    I've 2 prices here the car value is 41,069, petrol, 150g Co2 both prices over 3 years.
    One for a contact lease, 515.88 + Vat that includes maintenance of 78.35pm ex vat. Car without maintenance is 437.53 ex vat.
    Benifits, I can sell my own car and pocket the money.

    PCP, €380pm, 12k deposit (trade-in), Guaranteed future value of 16k (although this should be higher in reality come trade in time.) I think tax, tyres, maintenance would come in around 2k extra a year. There included in the contract lease.

    Car is used around 90% business.


Comments

  • #2
    L.Jenkins
    Moderators, Computer Games Moderators, Technology & Internet Moderators Posts: 19,242 Mod ✭✭✭✭L.Jenkins


    Have you worked out the cost over the 3 years and contractual obligations? Option 1 seems to be cheaper, but what's the catch? I'm sure lease agreements come with restrictions on mileage and wear/tare.


  • #3
    drunkmonkey
    Registered Users, Registered Users 2 Posts: 28,324 ✭✭✭✭drunkmonkey


    The only obligation seems to be keep it in good order and make sure it's insured. Milage limit is fine for me.
    It's more got to do with the tax implications, can I write off the lease, I think I can't write off 15% due to emmisions, and another 10% as it's personal.
    With PCP I think I can accelerate the deprecation over 3yrs. Instead of the 3k over 7yrs with my current car.

    It's a bit mind boggling.


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