Current contract hire offer

[Mike_S]

Hi,
I am a plumber/heating engineer. I have had quotes today from my local VW van centre, planning on finalising the deal on Saturday.
My options are:
T26 84ps Startline £1000 up front then £235 per month
T28 102ps Highline £1000 up front then £290 per month.
All are 36 month, 30,000 total mileage deals which is fine for me.

I've never weighed my van so I don't know which one I need but I am thinking it would be wise to go for the T28 as I assume the T26 is more for light work? It's very slow too.

What would you advise? I would need to buy the bulkhead for £180 if I go for the T26 and I think the comfort pack for £225 as it seems the Startline doesn't even come with sun visors?

Leaning towards the Highline, plus it would look better but it's my company after all and I don't want to be wasteful. Prices all ex vat and I am vat registered.

Any tips on doing this deal? Or any better deals?
Thanks for your time, any advice is greatly appreciated.

 

[Fish]

Does VAT have any bearing?. As T32 qualifys

 

[Mike_S]

The contract will be with my vat registered limited company. These base models are the only options, as well as the edition but it's ridiculous money. So just these two options. I can add extras to them though...

 

[Pauly]

Not here as it not a purchase, leases don't have the VAT reclaim clause

Personally I would go highline as it has all the toys AC/heated screen and mirrors plus factory alarm etc etc if you are like me (sparky) and spend a lot of time in your van I think it's worth the extra £50 a month to have AC in summer and not be outside scraping the screen at six in the morning during winter

 

[Mike_S]

Yep that heated screen is really appealing. What's the score with the vat then? I can't claim it back if I hire?

 

[Pauly]

No its nothing to worry about, it only affects kombis being bought, HMRC want a minimum 1T payload so if its a kombi needs to be a T32 to hit that 1000kg

 

[Mike_S]

oh okay thanks, just checked. It's 100% business use (I have a car) so I can claim 100% back. Not a kombi.
I would really like to just add DSG but it's going to cost.
Think I'll go for the Highline. What will they be open to doing a deal on besides whats on the website? Any extras or servicing?

 

[Fish]

Have a look at other threads where members have asked about extras and accessories this will give you an idea of what we all think is worth trying to get, if you can negotiate these in then all the better..
First 2 services could be thrown into the deal.. all depends on their numbers and target imo.

 

[Mike_S]

Ordered the Highline today. There was one waiting are the port with the larger radio and app connect so had to pay for the extra. Otherwise would’ve been a factory order. Direct from VW van centre Lancashire.

 

[Fish]

Sounds great pal. What Team colour are you heading to?.

 

[Mike_S]

white but getting it stickered or wrapped for business

 

[Fish]

Awesome, look forward to your media page.

 

[Mike_S]

Well the deal broke down today. Even though they kept saying the van is on it’s way, we couldn’t agree terms. They wanted me to sign a personal indemnity as I’m a small company. I refused and offered 6 months rental up front instead. The sales guy wouldn’t even re quote it and said 9 out of 10 have to sign an indemnity and adding more deposit won’t make a difference. Of course it would. I might go elsewhere and I reckon it would be fine. Finance company just looking to reduce their risk which more deposit does. I have no interest in entering into a personal agreement with them for a company vehicle contract hire. The whole agreement would show on my credit report. Pretty disappointing. Time to shop around.

 

[Pauly]

I dont think its that uncommon for companies to ask for directors guarantee if the company doesnt have sufficient trading history

 

[Mike_S]

We have trading as a vat registered limited company since 2012 with no credit problems no late returns and more assets than liabilities. They were very vague on the requirements and said it’s more to do with the value of the vehicle compared to the value of my company but that didn’t make sense and I’m hiring it not buying it. “They were just after some extra reassurance” the salesman said so I offered 6 months deposit but he wanted me to sign the indemnity. In the end the salesman said he has to move on from this now and even Richard Branson would have to sign an indemnity even if he paid 50% deposit but that is bullshit. They are often negotiated out of. They were just trying to tie in both my company and me personally. I think it was silly not to go back to the underwriters with an extra 6 month advance seeing as the original offer was zero customer deposit.

 

[Pauly]

I see what your saying that does seem strange, less than 3 years i could understand if you were purchasing but why for a rental ?!?!

 

[Mike_S]

It was strange. I’m sure the underwriters would have bitten my hand off with 6 month advance but the sales guy was a bit clueless and just had enough of the negotiating even though I never tried knocking the price of the hire and I was paying for extras. Deal was £297.57 plus vat X 36.

 

[Mike_S]

Personal Indemnity is a silly risk. It suits them more than a personal guarantee as with an indemnity they dont even need a court case. It's for directors who are either desperate or don't know what they are signing. I'm shopping around...

 

[Alan Croft]

We run a fleet of t28 102ps lwb startlines for our plumbers and sparkies. The 84 ps is a bit short on oomph really. I had to drop one of ours off the other day and the 102 isn’t that bad tbh. Empty it feels as perky as my 150! The only downside is a 3m pipe doesn’t go straight in you have to angle them. Other option is to buy some roof bars and a pipe holder? Why they can’t do the hatch in the bulkhead like the ford I don’t know!!! Good vans all the same and seem to hold up well. I would get the bumper protector for the back though as for £50 it saves the bumper when you hand the van back.

 

[Banj]

You'd be better off buying the van on finance and paying off the full vat amount straight away plus small deposit, then claim back the vat. Vans in your name and can do what you want with it