Finance /Payment options

[Beady]

My original plan was/is to pay cash.

However my last new car (Macan family wagon) was purchased via a lease deal through my business and purchased from them at the end of the 3 yr lease. This had good tax savings for me due the company structure.

Of course we didnt own the car for the first 3 years but have now completed the purchase.

I recently enquired to Lotus about doing the same with the Emira - of course this means the initial purchase would actually be completed by the leasing company not me, so i guessed my deposit would need to be transferred to the lease company.

The Lotus reply was that this was not possible.

It has now occurred to me that for lots of people buying on finance (other than a cash loan), the finance company usually take ownership until the final / balloon payment is completed at the end of the period.

The Lotus response seem to suggest that this will not be possible on a new car which doesn't sound right.

 

Is anyone else looking at finance options outside lotus own finance? and if so have you managed to work around the above problem yet ?

 

[Wake]

I’ve never done finance before but I’d sorta assumed that: 

Lease = an arrangement between yourself and the owner of the vehicle for a monthly fee to have unrestricted access to the vehicle. 
 

Hire Purchase = S̶a̶m̶e̶ ̶a̶s̶ ̶a̶b̶o̶v̶e̶ ̶b̶u̶t̶ ̶m̶o̶n̶t̶h̶l̶y̶ ̶p̶a̶y̶m̶e̶n̶t̶s̶ ̶a̶r̶e̶ ̶l̶o̶w̶e̶r̶ ̶s̶u̶b̶s̶i̶d̶i̶s̶e̶d̶ ̶b̶y̶ ̶a̶ ̶b̶a̶l̶l̶o̶o̶n̶ ̶p̶a̶y̶m̶e̶n̶t̶ ̶a̶t̶ ̶t̶h̶e̶ ̶e̶n̶d̶

PCP = Same as above but monthly payments are lower subsidised by a balloon payment at the end. 
 

My understanding was that in option 2 & 3 you are the registered owner of the car, which would mean the deposit is in your name. Whereas in option 1 you would not be the registered owner? 
 

In your scenario did you not lease the car through the company and then buy it at the end of the lease as part of 2 separate arrangements? 
 

I’ve never really liked the idea of financing a car so never really looked into it all that much 

Edited April 9, 2022 by Wake

[exeterjeep]

Found..

If you take out a Personal Contract Purchase (PCP) agreement, the lending company (usually the car manufacturer), remains the owner of the car until the balance is paid in full. 

and

 

Can you change the registered keeper of a car on PCP?

 

 

No, you cannot do that. The car belongs to the financing company until you make all the payments, so you cannot change the name on the contract until then. And even if you find it hard to make payments and want to sell your car, it is impossible to do so. But it's not all so grim!

[Wake]

Thanks for correcting me! It’s a tad misleading to call it Personal Contract Purchase if you aren’t actually the owner at any point throughout the contract though! 

[Bibs]

I'll be getting more info on finance options early next week to clarify what is available