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Should I purchase my company car at the end of its lease?
I have a company car, a 2012 Hyundai i40, 1.7 diesel estate. I am coming to the end of the lease and am wondering whether I should buy the car? I have done 121,000 miles and have been given a price to purchase by the lease company of £6500, including VAT. In the time I have had the car it has needed some work doing to it, although generally speaking it has been a good car. It has heated leather electric seats, navigation, cruise control, etc, although I am trying to not let these influence my decision. I only have until 20 January 2017 to make a decision. If you advise not to purchase, what would you suggest is a good equivalent alternative for £6500?
Asked on 20 December 2016 by Rob
Answered by
Honest John
Because the car has been owned by the leasing company it is VAT qualifying, which means they have claimed the original input VAT on it back from HMRC. To sell the car, they have to charge VAT on it and as a non-VAT registered individual you can't claim it back. My advice is to offer £5000 including VAT and if they won't take it look for something else with lower mileage.
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