Company Car

[downinalbion]

Hello,

My business has been running for 6 months. We have attained a consistent monthly growth and are now making what I would class as high profits. The business is also in a very stable position.

I have always wanted to get myself a nice car. My dad gives me a lot of advice, as I am young and thinks I shouldn't waste money on a car. Fair enough cars probably aren't the best investment but I am sure that wanting a nice car is just a natural thing isn't it? It also makes sense that if I have a successful business I should treat myself to something I would like?

The second part of this post is to ask what method of purchasing or leasing a car you think is best?

Someone I know tends to contract hire cars. Is this a good option? The reason I like the sound of contract hire is you simply lease a nice car for a couple of years, pay the rentals, and then return it for another car, or whatever you would like.

All recommendations and comments are appreciated!

[mumper]

The best person to advise you would be your accountant, especially if you intend to get a car through your company.

However, it may be wise to listen to your dad for the time being - six months is not really long enough to assess a new business even if it is doing well at the moment. You should give it a full year at least and look at it again.

Occasionally, new business owners see healthy profits coming in during the first year and splash out on a new car, only to find that six months later work has slowed down and they have nothing to fall back on.

Whatever you decide, good luck with the business.

[JoyDivision]

I agree I have seen too many companies make this vital mistake of going flash only to discover 6 months later that they have a major cash flow problem becuase of it.

[Darren@1stAccountancy.biz]

Definately speak to your accountant as there could be tax implications, especially if trading through a limited company.

[daveashton]

This will depend on mileage and CO2, but auctions provide very cheap places to get cars and many are sold less than 3 years old hence even if it does goes wrong you can get it fixed from free.

Interest free credit cards also work well to save you paying interest.