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Duncan Hood
Company: GB Car Loans
Position: Consultant
Website: Click to view
Phone: 01204477882
Mobile: 01204477888
Expertise: Vehicle Finance

Liked by: 4
Connections: 1
Last online: Jun 11, 2011, 6:18 pm
Area of expertise:
Vehicle Finance
I am always looking for:
Opportunities
I can always provide:
Sound Advice

Profile details

I work for GB Car loans offering best finance advice for acquiring personal and company cars

Finding the perfect funding option when acquiring your next car / company cars can be a huge drain on personal and management time and leave many questions unanswered...

Did I get the best deal in terms of discounts?
Did I get the best deal in terms of interest rates?
Did I get the best deal on my part exchange?

Even when some or all of the above are answered, how can you guarantee that each vehicle acquisition in the future will be given the same level of care and attention to detail in terms of maximising the financial and operational benefits to you and your company.

Please visit our car Loans Website
http://www.gbcarloans.com/
And our Vehicle Leasing Website
http://www.threearrowsleasing.co.uk/

The Facts All you need to know about financing your next vehicle now is the time to make sure you're not paying more than you need to

How Many Times have you heard the following statements?
I've got the money so I've always paid cash - anyway it's cheaper

I'm not paying interest to a finance/leasing company - it will cost me more

The Facts All you need to know about financing your next vehicle now is the time to make sure you're not paying more than you need to

I always sell my own cars and get a good part exchange price

My accountant told me to buy it

If I buy it, I'll be able to sell it if I need to

I've always done it that way

All these statements (and more) are based on either a lack of information or advice, inherited traditions, fear of the unknown, or lack of confidence in the future.

I am going to assume the business's tax rate is at 28%, flat rate for hire purchase is 5% per annum and the business return on funds employed is also 5% per annum

Cost calculator paying cash
Ford Mondeo 2.0TDCI
A: Cost of car (Inc vat)
16,000.00
B: Sales proceeds after 3 years
4,760.00
C: Cost of using vehicle = A-B
11,240.00
D: Tax saving = Write down allowance X tax rate
3,147.20
E: Cost of taking money out of business = A X 5% per annum (COMPOUNDED)
2,522.00
F: Cost paying cash = C-D=E
10,614.80

Cost calculator using hire purchase
Ford Mondeo 2.0TDCI
A: Cost of car (Inc vat)
16,000.00
B: Sales proceeds after 3 years
4,760.00
C: Cost of using vehicle = A-B
11,240.00
D: Tax saving = Write down allowance X tax rate
3,147.20
E: Interest charges = A X 5% per annum (not compounded)
2,400.00
F: Tax saving on interest = E X tax rate
672.00
G: Cost using hire purchase = C-D+E-F
9,820.80

Cost calculator using contract hire
A: Total rentals over 36 months
12,867.94
B: Allowable rentals (100% or 85%)
100.00%
C: Amount allowable against tax A X B
12,867.94
D: Tax saving = C X tax rate
3,603.02
E: Deduct 3 years road fund licence (to compare)
450.00
F: Total cost using contract hire = A-D-E
8,814.92

This uses the same cost as Cash and HP. Assumes the business's tax rate is 28% Based on non maintenance contract over 36 months at 15Kmpa

Couple this minimum saving with the contract hire company's bonuses and discount. Why pay Cash?

Duncan Hood GB Car Loans 01204477882


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