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[w3526602]

Hi,

Can anybody tell me anything about having a new Contract Hire car every four years? As far as I can make out, the hire fee depends on you projected annual mileage, and adjusted at the end of the hire period. But the hire fee includes all the routine servicing costs? Have I got that right?

I mentioned to the CEO of Barbara's our CARERS, that hire charges are tax deductable, while HP is not. (or possibly less beneficially) Have I got that right? She is currently buy six cars on HP.

One of her cars shunted itself on the ice last week, with sufficient damage to be embarrasing. I'm  guessing that she will lose any NCD, and her insurers will hit ALL 6 of her premiums. On the other hand, I believe that PCP would have provided new car, there and then ... but would they hit her in the monthly rent, or wait till the end of the contact.

Any advice that I can pass on, will be appreciated by me, and probably her.

To my mind, having a new contract-hire car every four years, might be a good idea, if four years is the expected life of traction batteries.

602

PS . Passing on from the Daily Mail (I think). If you are charging your car from a public socket, do not try to squeeze the last few drops of smoke in. As far as I can make out, the charging rate drops as the battery becomes very full of smoke .... but you will still be charged by the number of minutes that you are plugged in.

[DogDave]

Different schemes will have different rules and the devil is always in the detail, some will do a service but not replace a tyre when it’s punctured or worn etc.

The ones I have seen (and never been tempted enough to go ahead with) the mileage excess is crippling so you have to be sure not going to go over or it’s really expensive. If it’s for buisness and their clients change to ones a further drive could be caught out.

The tax thing will be complicated I guess - lease is deductible- go you are acquiring an asset so would need to be capitalised and then you write off the depreciation over set time - let their accountant work out what’s best for them on that score.