Thank you to our personal leasing customer for emailing pictures of their beautiful new performance car – the BMW 1 Series.
While we do supply all makes and models of lease cars, choosing the right car for your individual circumstances is very important.
Just because a high performance car is a great value, doesn’t mean that this should be the route forwards for you (or your business). Some of these considerations did arise within this transaction, starting off with whether this should be a personal or business contract hire arrangement. While there is very little difference in terms of how the products work, if you do go for a business lease there are different financial considerations. Contract hire offers your business a tax allowable product against income tax (all of the monthly rentals) and for those businesses who are Vat registered, there is an ability to reclaim Vat on the finance/maintenance rentals.
As the vehicle is essentially a contractual arrangement between the finance company and the business (limited company), there is no personal risk to the driver/director (apart from situations where a directors’ guarantee is in place).
However, to counter some of the above, you also have to consider that when you have a company car, BiK will be payable on the vehicle. Based on the P11d and CO2, you need to ascertain how much tax you will pay per month on a vehicle. In short, the more expensive and more polluting a vehicle is, the higher the tax exposure will be.
This is why many company car drivers consider electric and PHEV–style vehicles, as they offer significantly improved CO2 statistics.
In the alternative, a director (or driver) can instead receive a car allowance and/or business mileage for use of the vehicle. The amount of company car allowance is subject to income tax (it is very important you “net” the “gross” amount from your employer) but there are no tax implications for using the car.
Whether you drive an electric vehicle, a diesel vehicle or a high-performance petrol vehicle, is really just a personal decision.
For a director weighing up between a company car and a car allowance they need to essentially work out the tax payable in each situation and make a practical decision.
What also arose within this transaction, was the “initial rental” payable on the vehicle. The prices advertised on our website are based on a 6-spread initial rental. So if you see a rental of £100 inc Vat, the initial rental (payable in month 1) would be £600. This is not a refundable deposit, this is just a way of structuring your agreement. Whether your pay a high initial or low initial rental, the overall cost is the same. As the driver was in this transaction was using a car allowance, in order to procure the car personally, they wanted to minimise the initial capital outlay. Therefore they used a “no initial rental “ arrangement / no deposit arrangement to procure the vehicle. Just to note that if you do want this to be put in place, please speak to us in advance, as a no initial rental is not possible with all finance companies.
In terms of the car shown here, the BMW 1 Series Hatchback Special Edition M140i Shadow Edition 5 Door Petrol Automatic, this is based on the following configuration:
· Estoril Blue Metallic Paint
· Dakota Leather – Black
· High Gloss Black Interior with Pearl Chrome Finish
· 18″ Light Alloy Wheels – M Double Spoke Style 436M in Orbit Grey
· Heated Front Seats
As standard the car includes Bluetooth, 18” alloys wheels (in grey), LED headlights, navigation, rear park distance control, sports suspension, tinted heat insulating glass, rain sensing wipers, sun protection glass, stability control, cornering brake control, hill start assist, braking system, floor mats, drive performance control, cruise control, start/stop button, electrically adjustable and heated door mirrors, DAB radio, Harmon Kardon speak system, leather steering wheel, interior comfort pack, welcome lighting, warning tringle and first aid kit, immobiliser, Thatcham cat 1 alarm, sports function on gearbox, high performance tyres and a tyre mobility system. In terms of additional factory options, consider adding front parking sensors, heated front seats and the reversing camera for the perfect BMW M140i!
On the technical-side, company car and business users can note the P11d at £37,115.00 and CO2 at a sizeable 163g/km. The 2998CC engine delivers 340ps, 0-62 times of 4.8 seconds and combined MPG is at 39.8. Service intervals are set at every 24 months or 18,000 miles on the M140i – consider the cost differences between a driver-maintained and funder-maintained arrangement.
So would you select this BMW M140i as your preference leasing option when there are such great options nationwide? With the Audi RS3, the Mercedes AMG A45, VW Golf R and Seat Cupra or even a Ford Focus RS, the customer is spoiled for choice.
Let us know your thoughts on the car you would lease!
Find the very best BMW 1 Series Leasing Deals by Tapping Here @CarLease UK
