k1 on finance, can i Revo?
- Thread starter Petrol-Head-Pete
- Start date
I think as you don't technically own the car then you probably aren't allowed. You'd have to check your paperwork to know for definite.
But really it's down to the risk you are willing to take, if you have the car trouble free for 3 years and then buy it fully you wont have any problems. If you try and take it in for a warranty claim and they start asking questions then you could be ****ed
I'm sure somebody on here had that happen to them, not sure what happened in the end though.
But really it's down to the risk you are willing to take, if you have the car trouble free for 3 years and then buy it fully you wont have any problems. If you try and take it in for a warranty claim and they start asking questions then you could be ****ed
I'm sure somebody on here had that happen to them, not sure what happened in the end though.
Poverty
Guest
do you have the option of giving the car back after a certain amount of time, or are you paying the entire sum monthly?
Basically if you have the option of giving the car back, dont mod it, as it bite rscsk2 in the ass.
From the point of view that it technically isn't your car, no it isn't a good idea.
They could demand the car back at any point in time if they find out it's modified or immediate payment of the outstanding balance.
Also of course the warrenty is impacted.
That said it is unlikely the finance company (who own the car) would ever find out.
They could demand the car back at any point in time if they find out it's modified or immediate payment of the outstanding balance.
Also of course the warrenty is impacted.
That said it is unlikely the finance company (who own the car) would ever find out.
pcp is a hire lease, modding it would not be advisable unless you have a clause in the contract that allows you to make changes. But in any case, modds will void the warranty (so im led to believe)
you will be given the option to title at the end of lease...but i suspect the rv will be fairly high with seat finance as they will want you to upgrade rather than settle
you will be given the option to title at the end of lease...but i suspect the rv will be fairly high with seat finance as they will want you to upgrade rather than settle
Gudgie
Guest
Technically speaking you are in ownership of the vehicle. The reason for this is that you are able to claim the benefits, or are liable for the risks, associated with owning the vehicle eg if the car breaks you are liable for the repair or if you sell it, the profit after deducting what the finance house is owed is yours is it not? From an accountants point of view with a finance lease the lessee is the one in ownership of the vehicle. With an operating lease you are technically only renting and so the lessor is still the one who will retain ownership. I would say that a PCP falls under the category of a finance lease and so you would own it.
A bit of a longwinded answer. Hope i didn't bore the @rse off ya!
A bit of a longwinded answer. Hope i didn't bore the @rse off ya!
unless you have a hire purchase agreement you dont have any ownership right and will only be given the option to take title once all finance payments have been met, you will not own the asset until youve made all the payments. you will however have the option to upgrade throughout the lease.
on any lease you will be liable for the upkeep and to maintain the asset. you will be charged if the asset is returned in bad condition at the end of term as the financer will have to re-sell this asset.
you shouldnt indicate the lessee as the owner on the balance sheet as its not an owned asset until you take title. thats part of the benefit of leasing as you dont have to list the item on balance sheet. Tou therefore gain from tax benefits aswell as cashflow benefits by not having the asset on sheet
That sounds like a good idea mate, how much does it cost and what does it plug into?
Gudgie
Guest
"you shouldnt indicate the lessee as the owner on the balance sheet as its not an owned asset until you take title"
That would only be in the case of an operating lease. With a finance lease you can show the asset on the balance sheet. You would show the asset on the asset register and the corresponding double entry would be the capital amount financed shown in the liabilities both < 1 year and > 1year.
Even with staight HP the treatmnet would be the same as above.
That would only be in the case of an operating lease. With a finance lease you can show the asset on the balance sheet. You would show the asset on the asset register and the corresponding double entry would be the capital amount financed shown in the liabilities both < 1 year and > 1year.
Even with staight HP the treatmnet would be the same as above.
I know my finance is a pcp contract not a lease, it was taken over 3 years, and at the end of the 3 years i could pay the gfv amount (guaranteed final value) and keep the car, re-finance the car or part exchange it there were 2 types of pcp plans i could choose from and the other one had 3 options simlar after 3 years but you could hand it back and walk away with nothing to pay instead of re-financing but this option made the payments higher so i went for the cheaper one. Also there were no excess milage fees either.
Am i right in thinking a lease is through a company using it as a company car, and hire purchase is for personal use?
you can have either...
leases are generally used on deals and when your looking to hand back the asset at some point. Most tend to hand back and upgrade the asset. for example you would want to lease a computer because after 3 years the asset would be out of date, you would then just upgrade and start a new lease rather than own an old asset. rentals are lower as these tend to have rv's built in so that the finance company can re-sell af fair market value.
hire purchase are often used for businesses/ person that want to spread the payment and own the asset after their 36 month term for example. my example here is the car, where you want to spread your cost but want to own it after 3 years. Typically the hire purchase will be more expensive as you dont have a residual value, or it is very small, built into the agreement.
I would look at your contract and see if it states "lease" or "hire purchase"
sounds like a lease from what you have said, your being given the option to take title at a fixed cost (rv)
no excess miles fee was good though, i know a few people that have been stung by that
Gudgie
Guest
"So if i got the 0% finance deal i cant modify anything?"
If its HP or PCP i would say yes as in my view you own the vehicle. But almost any type of mod is going to void your warranty. Blue fin is the way to go if you are still under warranty.
"I know my finance is a pcp contract not a lease"
I would say that your "contract" is not hire purchase but more falls under the bracket of a finance lease. When you refinance the GFV at the end of the term then chances are that will be on HP.
"Am i right in thinking a lease is through a company using it as a company car, and hire purchase is for personal use?"
In a word no. Company's can still have an HP agreement in their name just the same as an individual can have a lease in their name alone. HP you are paying back the capital that has been loaned to you over a set period eg 36 months etc. An operating lease you are paying a set rental on a monthly basis without ever having to take ownership of the asset hence the tax benefits associated with operating leases. this is why it is more likely for companies to use these to lease vehicles and office equipment. Clear as mud?
If its HP or PCP i would say yes as in my view you own the vehicle. But almost any type of mod is going to void your warranty. Blue fin is the way to go if you are still under warranty.
"I know my finance is a pcp contract not a lease"
I would say that your "contract" is not hire purchase but more falls under the bracket of a finance lease. When you refinance the GFV at the end of the term then chances are that will be on HP.
"Am i right in thinking a lease is through a company using it as a company car, and hire purchase is for personal use?"
In a word no. Company's can still have an HP agreement in their name just the same as an individual can have a lease in their name alone. HP you are paying back the capital that has been loaned to you over a set period eg 36 months etc. An operating lease you are paying a set rental on a monthly basis without ever having to take ownership of the asset hence the tax benefits associated with operating leases. this is why it is more likely for companies to use these to lease vehicles and office equipment. Clear as mud?
I`ll have to check my agreement.
It is the 3 year, 0% finance deal they have been offering lately. So after 3 years i will have paid it off, so does the car not belong to me to modify?
As you can see below though, i haven't really changed anything major!
lol see how the financer and the accountant have different perspectives.
it also comes down to who the actual finance company are as to what guidelines they set in the terms of the agreement.
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