Brass 'n' tax

Article Abstract:

The decision to buy or lease company cars is often influenced by each of these acquistion method's taxation and other financial implications and the particular situation that the company is in. The outright cash purchase of fleet cars would be practical for companies that have the money because they could take advantage of the capital allowances granted to the cars, thereby lessening their profits tax. A finance leasing scheme would allow companies to charge rentals against their taxable income, but they can never get to own the rented cars even though they assume all the costs of ownership, including maintenance and insurance. In a contract hire, also known as operating lease, leasees pay monthly 'rentals' which amount to the total estimated costs of operating a car. Some firms may find this scheme unattractive because contract hire rental charges are subject to value-added tax.

Taxation, Automobiles, Company, Company cars

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Lease or Finance - Which Way to Go?

Article Abstract:

Insight into the pros and cons of leasing versus financing equipment is given. Financing is a better choice during times of low inflation, however, leasing provides more liquid cash flow. Ownership brings tax breaks; however, leasing assures no waste from outdated equipment. Other considerations that are compared include the company's credit position, the status of the equipment on the balance sheet, and the speed of the authorization process. Determining if the equipment is needed should be the main decision.

Purchasing, Equipment and supplies

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Recovering hidden values in retail lease portfolios

Article Abstract:

Auto lessors can rid themselves of potentially big losses in their portfolios by persuading lessees to purchase rather than return vehicles at the expiration of the lease. Providing the best deal entails accurate and timely information on standard values, mileage and the lessee's credit standing. Computer software systems with internal decision-making algorithms can assist in the proper use of such information.

Passenger car leasing, Finance, Car leasing, Car rental, Contracts, Leases, Automobiles

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