fritz:
bridggar:

I know we've had this purchase\lease conversation before - but just so I understand perhaps differences in Germany to UK. A Lease in UK effectively charges you the cost of depreciation over the term of the lease. What it saves you is the initial capital outlay tied into the car. So assuming this is the same in Germany, aside from the capital outlay, you still suffer the depreciation by higher monthly payments?yes

The monthly payments do naturally have to reflect the underlying depreciation, but the car's driver is less inclined to notice the degree of depreciation directly. Smiley
I suspect (but don't know for a fact) that the overall tax situation for companies financing leased cars may be more favourable in Germany than in the UK, making leasing as compared with outright purchase a more attractive deal also for the end user in one country than the other.

Another HUGE advantage of the lease of a high end expensive car in Germany:

I do not put the 991 Turbo S on my company, simply because I already have the Cayenne GTS, which makes more "sense" for my company, even from the tax office's point of view.

When I buy a 210k EUR car in Germany as a private person, whoever buys the car from me later on, cannot deduct the 19% VAT if for example he wants to export the car or get it for a company somewhere.

If I lease the car however, even as a private person, the car keeps the 19% VAT deduction possibility.

Maybe this is something specific to Germany but one really has to be DUMB in Germany, to buy such a high priced car privately. It doesn't make sense, unless you really plan to keep the car longer than three years. I don't.


--

RC (Germany) - Rennteam Editor Porsche 991 Turbo S (Sept. 2013), Cayenne GTS (958), BMW X3 35d (2013)