Buy Tesla through private limited company

[adambg]

When Tesla updates my account yesterday, it gave me a new option to enter a care of name (optional) and said this name would only appear on the V5C if I added it, so I pit my own personal name in there, and now it shows alongside my company name. Does this sound right?

 

[Dommmm]

I thought that but the accountant said that to claim 100% FYA the car needs to be in the name of the company and on the V5 as new.

The ‘new’ bit is interesting; if you buy an ex demo from Tesla I believe the paperwork would say ‘new’ because the OEM owned the car and not a dealership?

That’s exactly what I did, ex demo indeed counts as new so you get the tax benefits of a new car.
Was worth it in my opinion, there was a scuff on one of the alloys but Tesla quickly replaced the whole wheel. Like a brand new car otherwise.

 

[adambg]

So I applied for Business HP with Blackhorse through the Tesla website and it just came back declined. I called Blackhorse, and they said they won’t allow me to apply for business finance for a vehicle I intend to use personally. I don’t understand this at all. It’s perfectly legal and is very common. My accountants have approved it all, it would get recorded as a company asset etc. and I would be charged a BIK tax for personal use of the vehicle, so I don’t understand their issue with it. Anyway, they said they won’t do it. He was very sure. So I guess I need to find another finance provider who will happily provide finance for a business purchase when I intend to use the vehicle personally..... anyone got any recommendations?

 

[bp1000]

Are you sure you want to take out a hire purchase? Do you intend to keep it for a long time?

I cant comment on the BHP restriction they've told you. It seems very odd to me. Did you tell them the vehicle will be used to commute to work and also business use and meetings? I presume it will be used in that way?

I tend to prefer business contract hire where you just hand the car back after a certain term, or refinance and extend for cheaper.

 

[adambg]

Are you sure you want to take out a hire purchase? Do you intend to keep it for a long time?

I cant comment on the BHP restriction they've told you. It seems very odd to me. Did you tell them the vehicle will be used to commute to work and also business use and meetings? I presume it will be used in that way?

I tend to prefer business contract hire where you just hand the car back after a certain term, or refinance and extend for cheaper.

No it's genuinely a 100% personal car. I will basically never use it for business. From a tax/legal point of view, this is totally fine. I've been 100% up-front with accountant about it. As far as I can tell, the company buys it as a company asset, and I pay tax on the BIK for the privilege of using it personally. But I don't get why the finance company would care how I use it. Re: HP vs contract hire, I did a big spreadsheet of all my options based on my future plans and I'm pretty convinced this option works best for me. Cheers

 

[bp1000]

No it's genuinely a 100% personal car. I will basically never use it for business. From a tax/legal point of view, this is totally fine. I've been 100% up-front with accountant about it. But I don't get why the finance company would care how I use it. Re: HP vs contract hire, I did a big spreadsheet of all my options based on my future plans and I'm pretty convinced this option works best for me. Cheers

Understood. It is unusual but Ive never done a hire purchase. As part of my job I did work with a bank who issued loans for purchases of business equipment and they were for business use only.

I'd guess this is just Blackhorse, I haven't heard of this restriction before. I'm sure you will find another lender! Good lucky and let us know.

 

[Rooster6655]

If you were doing a lot of business miles then the 45p claim per mile would be great, and probably make it better to buy the car personally. If you aren’t able to claim business mileage then a company purchase is probably saving the most.

I traded in my last 3 after doing after 2.5 years through a company and would have been better off by several thousand if I had claimed mileage @ 45p as resale was high. If it had been low it would have been different.