[Finance] Leasing a Tesla

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Weststander

Well-known member
Aug 25, 2011
69,325
Withdean area
It might depend on how you pay yourself via the Limited Company. If your salary is low, for whatever reason, then the business leasing the car (rather than you) might be beneficial....

1. You reduce the profit of the business so will pay less corporation tax at year end.
2. The BIK tax on an EV is currently 2% so, say the car is worth £40k, you'd only be taxed on £800 of that, at whatever tax rate you are on.

I'm still intrigued why the current leasing cost of a (more expensive) Tesla Model Y is that much less than a Model 3 though. Anyone know?

3. If VAT registered, the business reclaims 50% of the VAT within each lease payment. This only applies to contract hire or finance lease. Not PCP, HP or lease purchase.
 




Iford Albion

Active member
Jul 30, 2017
243
It might depend on how you pay yourself via the Limited Company. If your salary is low, for whatever reason, then the business leasing the car (rather than you) might be beneficial....

1. You reduce the profit of the business so will pay less corporation tax at year end.
2. The BIK tax on an EV is currently 2% so, say the car is worth £40k, you'd only be taxed on £800 of that, at whatever tax rate you are on.

I'm still intrigued why the current leasing cost of a (more expensive) Tesla Model Y is that much less than a Model 3 though. Anyone know?
That mirrors what I thought on the tax front. I think the differential is due to them incentivising the new newer model Y. The 3 seems to be a better ride though.
 






wellquickwoody

Many More Voting Years
NSC Patron
Aug 10, 2007
13,913
Melbourne
Tesla are an ugly looking vehicle.
Have to sort of agree, at least on the better known models. The 3 is bland, the Y is a pig, but check out the Roadster on Google Never made it to the UK as far as I know, but I ordered an Uber last year and one of these things turned up. I actually did a double take.
 

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Iford Albion

Active member
Jul 30, 2017
243
Tesla are an ugly looking vehicle.
Calling @yourmum

Tbh I don’t care much about how it looks. I survived a head on collision in a mondeo. Diabetic youngster half unconscious doing 50 on wrong side of an A road. He nearly killed a cyclist before slamming in to me…The mondeo had all the safety tech ford got from Volvo and it took the hit like a champ. Loved that car for saving me and the wife. If I had been in my 1968 beetle I’d be dead. I want something functional. I own a jag atm which I like but it’s approaching 50k and a faff to maintain. I have had pretty cars but am far too sensible now to buy a kharmann ghia. Am open to ideas if I have missed something. Tesla just seems to tick some boring but important boxes.
 


Iford Albion

Active member
Jul 30, 2017
243
And pretty shoddily put together according to a detailer who worked on my car a month ago. Paint correction nightmare too apparently :shrug:

Each to their own, I don’t like EVs full stop, but Harry’s Garage did what I thought was a really interesting piece on EVs, PHEVs and his new diesel Chelsea wagon yesterday. Calm , collected and knowledgeable unlike most Youtubers. A farmer with a love of cars and founder of EVO magazine.


I don’t want to buy again. I want a tax efficient lease. Range rovers are pretty uninsurable in London now. It’s interesting in terms of the idea that evs might be a bit faddish. My current diesel costs me 30 quid for road tax because of the ad blu tech on it. It feels incredibly fuel efficient considering it’s ‘sporty’. Reckon getting a new ev every few years on a business lease is a smarter option nowadays though. Just want pointers to the best deal because it’s boring sifting through options and nsc tends to cut through the noise.
 








Superphil

Dismember
Jul 7, 2003
25,679
In a pile of football shirts
It might depend on how you pay yourself via the Limited Company. If your salary is low, for whatever reason, then the business leasing the car (rather than you) might be beneficial....

1. You reduce the profit of the business so will pay less corporation tax at year end.
2. The BIK tax on an EV is currently 2% so, say the car is worth £40k, you'd only be taxed on £800 of that, at whatever tax rate you are on.

I'm still intrigued why the current leasing cost of a (more expensive) Tesla Model Y is that much less than a Model 3 though. Anyone know?
As I understood it, when I used to lease my car the leasing rate is set on the guaranteed future value of the car, ie you’re ’borrowing’ the difference between the new price and the GFV. Hence it is/was cheaper to lease an Audi or BMW compared to a similar priced Ford or Vauxhall. Something like that anyway, perhaps the leasing companies dont think the Model 3 will hold its value as well as the Y.
 






schmunk

Why oh why oh why?
Jan 19, 2018
10,359
Mid mid mid Sussex
Have to sort of agree, at least on the better known models. The 3 is bland, the Y is a pig, but check out the Roadster on Google Never made it to the UK as far as I know, but I ordered an Uber last year and one of these things turned up. I actually did a double take.
This 2nd Gen Tesla Roadster has not yet started production. Whatever you were in was not one of these.
 


wellquickwoody

Many More Voting Years
NSC Patron
Aug 10, 2007
13,913
Melbourne
This 2nd Gen Tesla Roadster has not yet started production. Whatever you were in was not one of these.
Maybe not second gen, maybe first? Anyhow, it was a Tesla that looked good, it could not be a 3 or a Y.
 










Half Time Pies

Well-known member
Sep 7, 2003
1,575
Brighton
Maybe not second gen, maybe first? Anyhow, it was a Tesla that looked good, it could not be a 3 or a Y.
1st generation Roadster was tesla first car! They were 2 seaters based on the old Lotus Elise platform so it wouldnt be one of them. It may have been a model S and maybe even the plaid version which does 0-60 in 2 seconds!
 




Superphil

Dismember
Jul 7, 2003
25,679
In a pile of football shirts
This 2nd Gen Tesla Roadster has not yet started production. Whatever you were in was not one of these.
They did do a roadster based on the Lotus Elise before even the Model S came out. Used to be one running around Storrington area, I later found out that there is a Tesla tech/engineer who lives in the area who is a friend of a friend, used to drive a Model S mule car testing stuff for the British/European market.
 


wellquickwoody

Many More Voting Years
NSC Patron
Aug 10, 2007
13,913
Melbourne
They did do a roadster based on the Lotus Elise before even the Model S came out. Used to be one running around Storrington area, I later found out that there is a Tesla tech/engineer who lives in the area who is a friend of a friend, used to drive a Model S mule car testing stuff for the British/European market.
Looking at images, a model S.
 


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