How Should You Fund Your Next Car
Episode description
Shaz looks at what you should consider when you are looking to fund your next car and shares informative content that may change your next car choice
There are a huge number of factors to consider when choosing a car and your choice may be influenced by your company structure when you look at the tax implications
This is a great listen if you want an overview of the most effective ways to purchase a car and know how to offset the cost of a depreciating asset.
KEY TAKEAWAYS
- The type of company structure you have will influence the best way to fund a vehicle
- Cars are a depreciating asset so contract hire can be the right solution
- The more miles you drive the more the value of the car depreciates and the more you will have to pay
- With leasing, you pay an upfront fee and an agreed monthly fee
- The larger the upfront payment the less the monthly fee
- You agree on an amount of expected mileage
- If its 100% business use you can claim back the VAT
- If the vehicle is used for both business and personal use you ca. claim the business percentage of VAT back
- If you have a car with contract hire through a limited company and you have personal use you have to pay benefit in kind tax
- Do not buy assets that depreciate, lease, or hire them
- Currently, the tax rate when you purchase an electric car is very low
BEST MOMENTS
‘I always get cars on contract hire and invest the money elsewhere’
‘There are some really good deals out there’
‘Think about going electric the advantages are good from a tax point of view’
VALUABLE RESOURCES
ABOUT THE HOST
Shaz Nawaz is a serial entrepreneur; he owns five thriving businesses in diverse sectors.
Shaz is committed to helping business owners build successful businesses. Having conducted over 3,000 business growth consultation he has helped his clients generate millions in additional profits. His purpose is to inspire business owners to build businesses that are hugely profitable and sustainable.
He is a huge advocate of having multiple streams of income. He has written a number of business books and regularly contributes articles to mainstream media outlets.
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