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Ocsltd

Talk to me about PCP

4 posts in this topic

A family friend is looking to buy a car, through their business on PCP. Unfortunately I don't do finance so can't help them, but they've asked me for advice, but I don't know that much about it, so said I would have a would with you helpful lot! :)

They want to take a car on PCP to help with their cash flow, but want the option of being able to buy the car at the end, hence not wanting to lease a car.

What cars qualify for PCP, or should I say what's the criteria of the car? i.e is there an age limit on the car?

Can they take out PCP through their business?

Thanks in advance

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Businesses lease cars,PCP’s are for personal use.If the business is a company and it leases a car,it will attract company car tax  and fuel benefit tax.Alternatively with a PCP contract,if it was being used occasionally for the business ( which although it may not be allowed in the contract)you could charge the company 45p per mile mileage allowance saving company car and fuel benefit tax.If they do a lot of miles,I would say just buy a car personally on HP and charge the company mileage allowance and you can make money on the deal and not pay tax on the surplus..............This is just my view,I may be wrong.

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9 hours ago, trade vet said:

Businesses lease cars,PCP’s are for personal use.If the business is a company and it leases a car,it will attract company car tax  and fuel benefit tax.Alternatively with a PCP contract,if it was being used occasionally for the business ( which although it may not be allowed in the contract)you could charge the company 45p per mile mileage allowance saving company car and fuel benefit tax.If they do a lot of miles,I would say just buy a car personally on HP and charge the company mileage allowance and you can make money on the deal and not pay tax on the surplus..............This is just my view,I may be wrong.

Don't think you're wrong - seems spot on!

OCS - Instead of PCP look up Business Lease Purchase. Same sort of thing. Lease with an option to buy at the end. Trade Vet's idea seems better financially though.

Edited by Mojo121

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