258 – How a PCP can help your business

I WASN’T surprised when I saw Robert Nugent’s intelligent piece on the rise of personal lease deals – see his special report The attraction of personal lease deals.

For too long I think they have been overlooked as a method of funding cars.

Instead of running your car through the business, a personal lease is just what it says – personal. Any business mileage you reclaim at 40p per mile using the tax-free AMAP (Approved Mileage Allowance Payment) system.

True, it’s not VAT-efficient. But it is easy to administer.

A couple of months back the Finance & Leasing Association (FLA) reported that PCP – a personal contract purchase – was the most popular way to fund a car from a dealer.

I think we helped. Recently my wife and co-director, Alison, took delivery of a Fiat 500 1.2 Lounge. The deal was terrific from Fiat (I did ask some of my leasing broker contacts to quote, but Fiat’s deal really was top drawer) – and means we pay less than £140 a month. For a top notch, high image car. That’s my sort of business motoring.

It will be useful for Alison who is starting a new business as an interior design and decoration consultant. It’s the right sort of image car – retro-smart but good value.

The process was made easier by the affable staff at the Fiat dealer we went to: Parkside in Whitton. They were everything you would want a dealer to be. Friendly; welcoming; on the ball; fuss-free; and helpful. If you want a Fiat in west London, then head straight for here is my tip. You won’t be disappointed.