This article is a summary of a YouTube video "Buying vs Leasing vs PCP a Tesla via a UK LTD company. Spreadsheet Comparison VAT & Corporation Tax" by Rick on Tesla

Best Options for Financing a Tesla through a UK Limited Company

TLDRIn this video, we explore the best options for financing a Tesla through a UK limited company, including buying outright, leasing, and the PCP option. We analyze the costs, tax savings, and depreciation values to help you make an informed decision.

Key insights

💰Buying a Tesla outright is the cheapest option upfront, but you need to consider the depreciation value and tax savings over time.

🚗Leasing a Tesla allows you to drive a new car every few years without worrying about depreciation, but you have no ownership at the end of the lease period.

🔄PCP (Personal Contract Purchase) allows you to drive a Tesla with lower monthly payments and the option to buy the car at the end of the contract.

💼Consider the tax savings and VAT reclaims available for each financing option, as well as the impact on your company's cash flow and balance sheet.

💸Investing the cash saved from leasing or PCP into other investments can potentially yield higher returns than the depreciation value of the car.

Q&A

What are the tax benefits of financing a Tesla through a UK limited company?

Financing a Tesla through a UK limited company allows you to reclaim VAT on the purchase price and benefit from tax deductions on the corporation tax, reducing the overall cost of ownership.

Can I reclaim VAT on the purchase price of a Tesla if it's used for personal purposes?

No, you can only reclaim VAT on the purchase price if the Tesla is used 100% for business purposes.

Which financing option is the most cost-effective in the long run?

The most cost-effective financing option depends on various factors such as your company's cash flow, tax situation, and preference for vehicle ownership. Buying outright may be cheaper upfront, but leasing or PCP allows for more flexibility and potential tax savings.

What happens at the end of a lease or PCP contract?

At the end of a lease contract, you return the vehicle to the leasing company. With PCP, you have the option to buy the car by paying the agreed-upon balloon payment or return the car to the dealership.

Should I consider investing the saved cash from leasing or PCP into other investments?

Investing the saved cash from leasing or PCP into other investments can potentially yield higher returns than the depreciation value of the car. However, it's important to consider the risks and consult with a financial advisor.

Timestamped Summary

00:00Introduction to the best options for financing a Tesla through a UK limited company.

02:30Analysis of the buying outright option, including the depreciation value and tax savings.

06:15Explanation of leasing as a financing option, highlighting the benefits and considerations.

10:30Insights into the PCP (Personal Contract Purchase) option, emphasizing the lower monthly payments and potential ownership at the end of the contract.

14:45Discussion of the tax benefits and VAT reclaims available for financing a Tesla through a UK limited company.

18:10Consideration of investing the saved cash from leasing or PCP into other investments for potential higher returns.