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Is this an exceptional deal ?

wivenhoe

Active Member
Joined
Jan 11, 2004
Messages
829
Location
Essex
Car
Was E350e - awaiting BMW 530e
My local MB dealer has offered £ 11.6k discount on a £ 54k E 350e SE optioned up. He says this is cut to the bone and it seems exceptional to me - Dealers on CarWow and Broadspeed are offering about £ 5k.

The car will be built to my order for delivery in Sept - new reg. I am an existing client and he said that helped. I expected the new E class and specifically the plug in E350e would not be deeply discounted.

I don't expect him to offer a good part ex on my C350e but for the £ 11.6k discount I will sell it elsewhere.

Am I fooling myself thinking it is an exceptional deal and that I should sign up asap
 
20%, not bad at all for a factory build to your spec
 
Agree but it's a quiet period with the market flooded with cars so these deal are becoming easier to find. You can get an S8 on a lease for £500+ for example, that's a huge discount!!

I would love to buy new an optioned up car but it just doesn't make financial sense when leasing.

Do it and enjoy I say!!


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Agree but it's a quiet period with the market flooded with cars so these deal are becoming easier to find. You can get an S8 on a lease for £500+ for example, that's a huge discount!!

I would love to buy new an optioned up car but it just doesn't make financial sense when leasing.

Do it and enjoy I say!!


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Thanks - I am going to buy it using my limited company so I can offset 100% of the cost against corporation tax so it makes sense to buy rather than lease - I think !!
 
Thanks - I am going to buy it using my limited company so I can offset 100% of the cost against corporation tax so it makes sense to buy rather than lease - I think !!



Please tell me how you do this?!? If you can I'm buying a McLaren this year!!!!


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If you buy the car outright then you will have a depreciating asset in the company, and you will only be able to offset the annual depreciation against CT (probably based on Glass's Guide value), but not the entire purchase cost in the first year, if this makes sense.
 
The advantage of leasing for a business ' as opposed to buying outright - is that it is an operational cost (OPEX) as opposed to capital cost (CAPEX), and therefore each payment you make to the leading company if fully predictable from CT - the leading deal is there for this very reason.
 
The advantage of leasing for a business ' as opposed to buying outright - is that it is an operational cost (OPEX) as opposed to capital cost (CAPEX), and therefore each payment you make to the leading company if fully predictable from CT - the leading deal is there for this very reason.



But I as the driver of said car will need to pay BIK?


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There are certainly deals available on new eclass e350cdi. I was offered a pretty good deal - not £11.6K but still good. Although the trade in on my e350cdi wasn't great either.

A lot of the future residual of the diesel would seem to depend on if the negative diesel publicity at the moment continues long term.
 
But I as the driver of said car will need to pay BIK?

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Yes.
 
With corrections:

The advantage of leasing a car for a business - as opposed to buying outright - is that it is an operational cost (OPEX) as opposed to capital cost (CAPEX), and therefore each payment you make to the leasing company is fully deductible from CT - the leasing deals are there for this very reason.
 
Drivethedeal offer a similar £11.5 k discount on the E350e , so not that special. You must take a minimum of £3000 on finance to qualify.
 
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If you buy the car outright then you will have a depreciating asset in the company, and you will only be able to offset the annual depreciation against CT (probably based on Glass's Guide value), but not the entire purchase cost in the first year, if this makes sense.

Markjay - as the car is below 50 'emissions' then the whole purchase cost can be written off in the first year, not just depreciation - I was given 100% against my C350e and so I'll get 100% of the cost to change.

As somebody asked - if you buy a McLaren with very high emissions you won't be able to offset very much !!!
 
I missed out on the facelift that you are buying a Hybrid.
 
Is there an anomaly with these hybrids that makes them viable to purchase through your business?

I stopped buying cars through my company some years ago. Even now my accountant tells me there's no possible way it could be cheaper than buying them personally (bar it being a pool car). Mind you I'm not buying anything remotely tax efficient.

I remember once considering a Range Rover Sport some years ago, so I sent over all the details to my accountant who informed me the BIK on that car would cost me £800pm. So we gave that a swerve.

If I understand this correctly you can write off 19% of the invoice price, (19% of £44K = about £8.5K in tax offset).

What are the BIK costs likely to be over your period of ownership presuming it's 3 years?

EDIT:- I didn't consider VAT so the £44K will include VAT. Can you also reclaim 50% of the up front vat and show the vehicle as a depreciating asset? Assuming you're vat registered.

So CT relief would be 19% of the pre vat price of about £36.7K = about 7K plus, half the VAT = about £3.5K)

I guess if BIK is less than £10K over your term of ownership it makes sense. That seems to be about the break even point.
 
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Red - I previously offset the total cost of the car including VAT. I paid £ 33k and rec'd £ 6.6k relief. As a company car with only 49 'emissions' the tax in the 40% band is £ 1,260 for 2016 / 2017 but the company pays (and gets tax relief) on insurance, servicing etc. which equals the £ 1,260 so all of the £ 6.6k is a bonus !
 
Red - I previously offset the total cost of the car including VAT. I paid £ 33k and rec'd £ 6.6k relief. As a company car with only 49 'emissions' the tax in the 40% band is £ 1,260 for 2016 / 2017 but the company pays (and gets tax relief) on insurance, servicing etc. which equals the £ 1,260 so all of the £ 6.6k is a bonus !

How do you claim all the VAT back? You can only reclaim 50% of the VAT on cars. (As I understand it).

You can't offset VAT payments against CT either.

Commercial vehicles or Pool cars can qualify for 100% relief in very strict circumstances.

Is this a special deal for stuff under the magic 49 number?
 
I too managed to get a great deal from my local MB dealer on a CLS 350d. List price including options was £56k. Drove it home for £41k. No doubt I will suffer at selling time.
 

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