Hi Andy, I am a self employed plumber and am looking for a new van but don't know whether to lease or buy, as I don't know what would be best for me. I am VAT registered and need some advice and guidance as to the options available.
Our expert Gary answered...
Hi Roger, thanks for sending us your question. As you are VAT registered you will be able to claim back up to 100% of the VAT on a Contract Hire or Finance Lease deal. The VAT is paid monthly and you can reclaim it quarterly in your VAT return. If you choose a Lease Purchase deal, you would need to pay all of the VAT up front as a deposit, but you can then claim it back in the first quarter. When you’re comparing leasing a van with buying outright, it’s worth taking into account the buying power we offer you when you lease through us, compared to buying directly from the dealer. Our buying power in the commercial vehicle market means we pass on the full dealer discount to you as well as the significant discount we negotiate directly with the manufacturer. Your monthly payments will be significantly more competitive this way, compared to buying outright and only receiving the dealer discount.