Nov 13 2017

Should I buy a car through my business? #new #car #offers

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Buying a car through your business rather than on a personal plan could work out much cheaper

7:00AM GMT 16 Feb 2014


I’m frequently struck by how much cheaper it appears to be if you lease a car through a business rather than going down the Personal Contract Purchase (PCP) route. The reason this topic interests me is that as a small business owner I, like many people I imagine, could pay for running a new car using either method.

Buy a car through your company on a scheme such as contract hire and you’ll pay a lower monthly headline figure than through a PCP. And over the term of a loan usually three or four years that adds up to a significant sum.

To run a £28,675 BMW 318d Sport for four years through a personal payment scheme, a PCP could cost nearly £3,500 more than leasing the car through a company. In both instances, the driver would be putting up a deposit of £1,674 and running the car for 48 months. However, where under the personal scheme the finance would need to be repaid at a rate of £342 a month, under the business scheme the repayments are a far more palatable £279 monthly.

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