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Lease vs buy

  • 12-02-2025 10:17AM
    #1
    have2flushtwice
    Registered Users, Registered Users 2 Posts: 1,586 ✭✭✭


    I've been looking into changing my work van lately. It's going to cost a fair bit as my current van is old, and I'll be selling it privately.

    To lease a basic transit costs close to 900 ( say 1k for numbers below)p.m and I get the vat back. But after a 3 or 4 year lease it goes back and I've nothing to show for cloae to 36k or 48k of payments.

    The Same money would buy me the van with change, and I'd have a van suitable to trade up again with lesser outlay the second time around.

    If I bought a van I'd be getting a loan as well, so either way it's going to cost me.

    Is leasing just a short term thing?



Comments

  • #2
    ELM327
    Registered Users, Registered Users 2, Paid Member Posts: 19,761 ✭✭✭✭ELM327


    Leasing is more tax advantageous. You can write the entire lease cost as opex whereas there are a lot more rules on capex (eg buying the asset there are depreciation timeframes).

    The 48k is from the gross revenue rather than after tax (either personal or corp tax depending on your setup) whereas buying a van you have the outlay probably the same but it's treated differently. You can only write off 1/8 of the outlay per year unless you get a van eligible for the ACCA scheme.

    (Obviously, get your own tax advice, I'm not an accountant just a nerd who likes cars and works in finance)

    Additionally most leases come with motor tax, maintenance, servicing etc.



  • #3
    have2flushtwice
    Registered Users, Registered Users 2 Posts: 1,586 ✭✭✭have2flushtwice


    I think looking at the prices of vans, I'd be buying secondhand. A 4 year old is 50% of new. Would get a lot of repairs done therein the difference.

    AAs Long as it's not an ex dad van, God the abuse they get.

    How does it make sense for a van worth so much to be put into the hands of some people. I do see last year some lads with crews giving them maxus vans. Are these a lower value/spec? Or are they built better for abuse?



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