June 26, 2025 • 17 mins
Need help with car finance? Reach out to Ammar Farishta here >>> https://dentistswhoinvest.com/car-finance
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Thinking about financing a new vehicle as a dentist in 2025? Whether you're considering an electric car, leasing through your limited company, or planning for your next business vehicle, this episode breaks down everything you need to know about car finance in the current landscape.
We explore the latest changes to electric vehicle (EV) taxation. From April, EVs now attract a £10 vehicle tax in the first year, followed by a £195 annual charge. While EVs were once tax-free, the government has gradually reduced incentives. However, there is good news – the previously planned luxury tax on EVs costing over £40,000 has now been scrapped, making premium electric cars more affordable for professionals.
One of the biggest developments for dental professionals is access to car finance for new limited companies. Traditionally, dentists had to wait over 12 months before applying for vehicle finance through their business. Thanks to new provider partnerships, it is now possible to lease vehicles earlier – even within the first year of trading. While early finance may come with higher rates, refinancing after six to nine months can unlock more competitive terms once your business credit improves.
The episode also provides important updates on lead times for factory-ordered vehicles. With production times stabilising post-COVID, custom orders typically take 12 to 16 weeks – so if you're targeting the new September '75 plate, now is the time to act.
Tune in to learn how to maximise your options and make smarter decisions when financing a car as a dental professional. Whether you're buying new, used, or leasing through your company, this episode gives you the up-to-date insight you need to get the best deal.
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Disclaimer: All content on this channel is for education purposes only and does not constitute an investment recommendation or individual financial advice. For that, you should speak to a regulated, independent professional. The value of investments and the income from them can go down as well as up, so you may get back less than you invest. The views expressed on this channel may no longer be current. The information provided is not a personal recommendation for any particular investment. Tax treatment depends on individual circumstances and all tax rules may change in the future. If you are unsure about the suitability of an investment, you should speak to a regulated, independent professional. Investment figures quoted refer to simulated past performance and that past performance is not a reliable indicator of future results/performance.
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Dr James (00:00):
Car finance is something that we don't really
know that much about as dentists, so it's really helpful to have
someone like my next guest inthe Dentists Who Invest podcast,
Mr Ammar Farishta, going to betalking about car finance, the
ins and outs of it, and alsowhat's changed in 2025 so that
we can get the car that we want.
Let's talk about how we can getthe car that we want, but also
(00:27):
in 2025, because a few thingshave moved around recently and
also with relevance to ourprevious conversation on the
dentist invest podcast, rightarmour absolutely absolutely,
really glad to be back for roundtwo hell yeah, let's do it.
So first things first.
I know you and I were catchingup off camera and we came up
with a little quick hit list ofthings we wanted to cover today,
and the first one was road taxchanges and how those impact our
(00:49):
leasing.
Maybe a good place to start isjust to recap what leasing is
for dentists.
Ammar (00:56):
Absolutely so.
As we discussed already in partone, there are a lot of
advantages to leasing a brandnew vehicle, so, whilst I'm not
going to go into that, I willgive people a reminder as to
what leasing is and how it works.
Okay, so with leasing, you'reessentially putting down an
(01:17):
initial deposit and with thatinitial deposit, or initial
rental as it's sometimes known,the more you put down initially,
the lower your monthly paymentsare going to be.
You're then into a contract,whether that's two, three, four
or five years, and you're makingequal monthly installments and
at the end of your contract,you're just simply giving the
(01:38):
vehicle back to the funder.
That's how it works.
Easiest chips, very, verystraightforward.
So that's how it works from afinancing perspective.
Now, as far as the vehicle isconcerned and I think this is
where the road tax element istied into this With a brand new
lease, you're getting a brandnew vehicle, so we're recording
(02:00):
this in 2025.
So you're getting a 2025 platevehicle.
You will also getmanufacturer's warranty included
as standard.
If you do decide to go for aservice pack which is always a
good thing to have you do getyour annual servicing, your MOT
when it's due, tyres and glassall included as standard as well
(02:20):
within your lease payments, sothat's a really, really good way
to do it.
So all you need to worry aboutis insurance and fueling up or
charging the vehicle, dependingon what you go for.
So that's essentially howleasing works in a nutshell.
Now, when it comes to road tax,in order this and, as I
mentioned at the beginning, roadtaxes included.
(02:41):
Having said that, though, whatI've noticed since our last
conversation, james, is thatthere has been a lot of dentists
who are interested in leasingelectric vehicles.
Now, there are obvious taxadvantages to doing that, but,
from a road tax perspective, thegovernment have recently made
changes to the way the road taxsystem works and, specifically,
(03:04):
the way that it's going toimpact on EVs or electric
vehicles.
So, from now onwards, electricvehicles are going to be taxed
at £195 per year.
That is going to be starting inyear two.
If you're getting a brand newvehicle so brand new vehicles in
2025, you start off with justpaying £10 for the year, and
(03:25):
then, from year two, it'll be£195 for every year after that.
Now, that will be includedwithin your lease payments, so
you will see a very slightincrease in terms of your lease
payments compared to what wouldhave been the case had you got
your lease in, let's say,january or February of this year
.
So it would be marginallydifferent, but it's nothing
(03:45):
that's too dear in the pocketlet's put it that way but it is
something to be mindful of, thatthat does exist and that that
will be included within yourpayments.
So, yeah, something to bemindful of, I think, for us, as
far as dentists are concerned.
Dr James (04:01):
That's the government being the government right there
, right, when they have thetax-free incentive, they always
amp it up afterwards, right?
Whatever that is, be that cars,be that whatever anything under
the sun, but I guess it's, it's, it's how it works.
It's not, no, it's not to beunexpected, uh.
So yeah, interesting.
Okay, fair enough, and in termsof things that we can do to
(04:23):
navigate that, do we just haveto take the hit?
Basically?
Ammar (04:27):
Yeah, in a nutshell, yes, and it's not as bad as having
road tax on other vehicles.
There is, of course, what'sknown as luxury tax, which is
there as well, and it soundslike something out of Monopoly,
doesn't it?
Luxury tax, which is over acertain threshold.
(04:53):
I believe that threshold is£40,000.
If the value of that car isover £40,000, you pay a luxury
tax.
I believe they were going to becharging that luxury tax on EVs
as well.
That has now been reversed, sothat's no longer the case
anymore.
So, luckily, luckily for thosewho are looking to go EV you're
not going to be paying luxurytax for that.
But if you do decide to go forsomething really nice a Porsche
911 or something along thoselines then, yes, you would be
(05:16):
charged a luxury tax and that'sjust something you're going to
take on the nose.
Unfortunately, it's just the waythings are.
You're absolutely right in thesense that you know that's just
generally how government havedone things.
It's fascinating to see thehistory on this and I won't
delve into it for too long.
But what's really interestingis, if you look at this compared
to five, maybe even 10 yearsago, there were humongous
incentives for people to go EV,whether that's free charging, no
(05:40):
road tax, incentives toactually cash back, incentives
when it comes to buying thevehicle itself or even charger
installs as well.
But slowly, slowly, they'retaking away these little prizes,
one by one, and I think theroad tax is probably the final
nail in the coffin.
I would say I don't thinkthere's much further they could
do to strangle us, although I'msure the government have got
some very interesting ways ofdoing that.
Dr James (06:03):
Yeah, let's not speak too soon shall we.
They might be innovative andcome up with something.
But you know there's actuallynot to digress too much.
There's a slight parallel inthe world of finance, I feel,
whenever it comes to this stuffand that is the lifetime
allowance on pensions.
I don't know, yeah, they've,they've.
(06:24):
You know what they did?
Right, they never had it Thenin like 2012,.
They brought it in.
It was 2 million.
Now you might think that itwould go up with inflation.
They actually brought it downover the years to like 1.2
million.
Uh, now they've done away withit for the moment.
But watch out, guys, is probablya big old honey trap, if you
ask me, because then people willstart topping up their pensions
again until the governmentdecide that they're going to
bring it in again, basically,which I think they will
(06:44):
personally.
But listen, all just opinion.
We don't know for sure.
Don Don't listen to menecessarily.
It's just an interestingobservation Sole trader versus
limited company with regards toyour car finance.
Dennis loved this conversationwith regards to their tax
position, so interested to knowhow the whole car finance
(07:05):
dynamic plays into that as welland what's changed as well,
actually, on that front.
Ammar (07:09):
Yeah, really, really interesting.
So what I found as anecdotalevidence, james, is when
dentists would want to takeadvantage of the opportunities
within leasing, the main hurdlethat was there is that these are
dentists who have recently setup as company directors and
(07:30):
don't really have much to showin terms of history of trading.
They're very, very new.
So they're looking to have awhole bunch of different
bolt-ons as far as their companyis concerned when the company
has just been brought intoexistence.
And so the challenge was to tryand get a funder that would be
(07:51):
interested in actually providinglease finance or asset finance
for vehicles for these companyowners.
And now, as very, very recently,I've managed to build a new
partnership with a financecompany that are willing to do
that actually, which isabsolutely fantastic, are
(08:13):
willing to do that actually,which is absolutely fantastic.
So now it's no longer a casewhere I'm telling dentists to
say, hey, you need at least ayear and you need to have a
strong director's guarantee or apersonal guarantee, and you've
got to make sure your creditscore is phenomenal in order for
your finance to go through.
That's no longer the case.
You could have it for under ayear's trading as well.
That's absolutely fine and wecould potentially get you the
lease finance that you're after.
So that is really really goodnews, and I'm just hoping that's
(08:35):
going to open up the floodgatesfor dentists to apply for
leasing agreements as and whenthey need to, so they can take
advantage very, very quickly.
Dr James (08:45):
You know, again, not to digress too much.
There's a little bit of aparallel when it comes to
mortgages in what you've justsaid, because a lot of the
standard kind of copy pasteadvice from a mortgage broker is
, hey, you need two years ofaccounts before we can talk
about mortgages.
But when you talk, that's notnecessarily true.
It's just knowing which lendersare out there can overcome that
(09:08):
or have solutions to overcomethat, right?
Uh, so a lot of dentists,myself included, operate on the
basis that that's a limitationthat we just have to accept.
But it's actually not true, youknow, uh, it's just means that
potentially the people that youcan work with for a little bit
more limited, but it's justknowing who they are Right.
And the the thing that I alwaysremember I asked, and I'd be the
(09:30):
reason I'm telling this storyis to pull it back to car
finance in two seconds, right,but I remember saying I remember
when a mortgage broker told methat one day and I was like
surely there's a catch in termsof, like interest rates and
stuff like that.
And the answer is there is, butit's nominal, it's much less
than you might expect.
You might expect.
(09:55):
How does that translate to thecar finances, would the interest
rate be a little bit higher.
Is that correct?
Or what are you finding in?
Ammar (09:58):
your experience?
Yeah, absolutely.
So, look, of course, becausethis is going to be a unique
proposition because there arenot so many companies that are
willing to do that and the riskis slightly higher.
To mitigate for that risk,they're going to be putting
safeguards in place.
So, whether that it'd be theinterest rate being a little bit
higher on, for example, if youwere to take out, let's say, a
used vehicle and if you were toget a PCP because that's where
(10:20):
interest would be charged thenyes, you'd be looking at
potentially a higher interestpayment.
You'd potentially be looking at, in a worst case scenario, you
have a situation which is knownas max advanced, so that's where
they'd only be allowing to lendyou a certain amount of ceiling
and not allow it for any more.
You'd have to put down a biggerdeposit, which may be the case,
(10:41):
but that's very, very rare.
So, to answer your question,the reality is is that, yes, it
would be a little bit more, butit would be a short term pain,
because the other reallyinteresting thing about this,
james, if let's say so, I'mgoing to use the used car
finances example here because Ithink it's more pertinent If,
(11:02):
let's say, you were to go aheadon a PCP agreement right for a
vehicle that's, let's say, twoyears old and your interest rate
, let's say, is, for our givensake, 14.9%, right.
And you know you're making yourmonthly payments.
You know you've been generallygood, you've not missed any
payments on any other creditagreements that you may have.
You know your credit worthinessis getting better and better
(11:25):
and better.
In six to nine months time wecould always relook at that and
say, hey, you know, actually theeconomic landscape has changed.
Interest rates have come down alittle bit.
Your score is also improved.
Looks like we could get youinto an agreement for 9.9
instead, shall we refinance it?
And you could get you intosomething way better.
So the idea, james, is actuallyto be able to get dentists
(11:45):
through the door.
So if you imagine that door isshut, they just got to sort of
jam your foot in initially,before it's then propped open.
If you see to be able to enterinto something which is a little
bit better, does that?
Dr James (11:55):
make sense.
It completely makes sense.
So it's a little bit of abridge right to speed things up.
And it doesn't mean justbecause the rate's higher
doesn't mean that it's locked in, because the option is there to
refinance, which is somethingthat you'll know.
You'll know how that's done.
Basically, there's no kind ofminimum period.
I'm guessing that you have tobe locked in, for you can just
(12:18):
switch that as soon as thingsare more favorable.
Is that correct?
Ammar (12:21):
That is the case in terms of used car finance, correct.
When it comes to leasing avehicle, it is slightly more
stringent.
So, with leasing, the way thatit works is that you are tied
into a contract.
So if it is going to be, let'ssay, two, three or four years,
you're going to need to makesure you stick to that, because
if you are going to exit early,the termination fees are high.
Having said that, though,there's no real interest
(12:42):
involved when it comes toleasing, right?
So that's just something to bemindful of.
So that's always quite usefulto know.
And so, as a result, people arejust paying that equal monthly
installment that doesn't changeover the two, three, four years.
It doesn't matter what happensto the shape of the economy or
what happens to the value of thecar.
It could go up, down sideways,it doesn't matter, it stays the
(13:04):
same.
You don't have to worry aboutit, you just keep making your
payments and you give the carback.
Dr James (13:06):
It's dead easy.
Fascinating, and is thatsolution you talked about just a
second ago?
Is that unique to specificallydentists?
Ammar (13:13):
So yeah, so that, to be fair, that could be done for
anyone.
But I think you know, when itcomes to dentists specifically,
if you think about the fact thata lot of these companies are
quite new in terms of theirsetup, then, yes, I think this
solution is actually quite auseful one where we can get
people initially through thedoor, perhaps, if they are going
for a used vehicle and theinterest rates are slightly
(13:34):
higher and, yes, perhaps youknow, just getting them through
the door initially, or even on alease.
You know, the lease paymentsmay be slightly higher because
the funder has decided that therate on that vehicle is slightly
different.
But again, that's just to beable to get them through the
door initially.
We could always go back and geta different vehicle once they
are up for renewal.
So, yeah, there's a lot of waysto do it, lots of flexibility.
Dr James (13:56):
Interesting because I mean business opportunity, right
?
I mean, how many associatedental companies default, right,
like it's not, you know, it'snot the.
Those companies don't haveoutgoings right, beyond what the
dentist is taking out to paythemselves most of the time,
right?
So I mean in terms of a lenderbeing willing to how many?
(14:18):
You know dentists, by and large, you know, get paid pretty well
and have a little bit morecoming in, and they're I know,
not all of them are this way,but they're generally very
responsible with their money,right?
So, yeah, the interest therecould be a business opportunity
there for some entrepreneurialcar finance person at some stage
to specifically offer solutionsfor dentists, saying as they're
that much more of a low risk interms of a niche and what have
(14:43):
you something to think about?
I don't know, I don't know.
That's kind of what I wasgetting at.
It's not.
This company hasn't penned boxthemselves in specifically
dentists.
It can just be for anybody, canit at this point?
Ah, okay, interesting.
All right, let's talk aboutsomething that we mentioned off
camera, factory orders, yes, andhow that's changed around in
2025.
Ammar (15:03):
Yes, yeah.
So I think this is more aroundtiming more than anything else.
So, just as a reminder for ouraudience, so when it comes to
brand new vehicles which arelooking to lease, new vehicles
come out twice a year, all right.
So one will come out in Marchand the next one will come out
in September, and so you'll havenew number plates which are
(15:24):
registered according to whenthat vehicle comes out.
So, in 2025, the vehicle willread letter, letter and then the
number 25 to show that it'sbeen released in March 25.
In September, it'll read 75.
So a letter letter 75 will showthat it's September.
Now, a lot of people quitefancy having a brand new vehicle
(15:45):
, right?
That's just something that'sreally nice to have.
When you're driving on the roadwith a shiny brand new vehicle,
right, it looks pretty cool,doesn't it?
And so you know there are somepeople who would really fancy
saying you know, actually, 25plates were three months ago.
I actually want somethingthat's going to be coming in
September and I'd love to be itfor it to be brand spanking new.
And so if you are looking to dothat, the time to do so is now.
(16:09):
And the reason I say that isbecause factory orders take
around 12 weeks for themanufacturers to create.
So, literally, the car is beingbuilt to your specification in
the factory.
To say, right, Mr Dentist hasordered this, make this model,
and he wants this type of brakecalipers, he wants this type of
(16:32):
interior, he wants this type ofexterior, he wants this type of
glass, for example, in thevehicle, these type of seats,
and please go ahead and make it,and they will then make that
specifically.
For example, in the vehicle,these type of seats, and please
go ahead and make it, and theywill then make that specifically
for them.
Bring it into the UK, into port, have the vehicle registered
and then delivered to your door.
So that time takes around 12 to16 weeks, and for that, in
(16:53):
order to be able to get it intime for September, october,
which is when the timing comesin for these 75 plates.
The time to put in those factoryorders is now.
So if you want to do that,definitely a really, really good
time to do so, because whatyou'll find, especially on some
of these more popular vehicles,is that they do take time to
come in.
We're not looking at conditionswhich are extreme.
(17:16):
So I think COVID was probablyjust an extreme example where
sometimes you take a year for avehicle to get made before it
comes through because ofmicrochip shortages, as many of
you may remember.
So that is just an exception,but now I think we're back to
normal.
So, when it comes to factoryorders, generally speaking, 12
to 16 weeks, unless it's areally popular manufacturer.
(17:39):
So, yeah, that's what I wouldsay when it comes to factory
orders Get your orders in now ifyou want something which is
really specific to you and youwant that car which is a
signature for yourself.
Car finance is something that we don't really
know that much about as dentists, so it's really helpful to have
someone like my next guest inthe Dentists Who Invest podcast,
Mr Ammar Farishta, going to betalking about car finance, the
ins and outs of it, and alsowhat's changed in 2025 so that
we can get the car that we want.
Let's talk about how we can getthe car that we want, but also
(00:27):
in 2025, because a few thingshave moved around recently and
also with relevance to ourprevious conversation on the
dentist invest podcast, rightarmour absolutely absolutely,
really glad to be back for roundtwo hell yeah, let's do it.
So first things first.
I know you and I were catchingup off camera and we came up
with a little quick hit list ofthings we wanted to cover today,
and the first one was road taxchanges and how those impact our
(00:49):
leasing.
Maybe a good place to start isjust to recap what leasing is
for dentists.
Ammar (00:56):
Absolutely so.
As we discussed already in partone, there are a lot of
advantages to leasing a brandnew vehicle, so, whilst I'm not
going to go into that, I willgive people a reminder as to
what leasing is and how it works.
Okay, so with leasing, you'reessentially putting down an
(01:17):
initial deposit and with thatinitial deposit, or initial
rental as it's sometimes known,the more you put down initially,
the lower your monthly paymentsare going to be.
You're then into a contract,whether that's two, three, four
or five years, and you're makingequal monthly installments and
at the end of your contract,you're just simply giving the
(01:38):
vehicle back to the funder.
That's how it works.
Easiest chips, very, verystraightforward.
So that's how it works from afinancing perspective.
Now, as far as the vehicle isconcerned and I think this is
where the road tax element istied into this With a brand new
lease, you're getting a brandnew vehicle, so we're recording
(02:00):
this in 2025.
So you're getting a 2025 platevehicle.
You will also getmanufacturer's warranty included
as standard.
If you do decide to go for aservice pack which is always a
good thing to have you do getyour annual servicing, your MOT
when it's due, tyres and glassall included as standard as well
(02:20):
within your lease payments, sothat's a really, really good way
to do it.
So all you need to worry aboutis insurance and fueling up or
charging the vehicle, dependingon what you go for.
So that's essentially howleasing works in a nutshell.
Now, when it comes to road tax,in order this and, as I
mentioned at the beginning, roadtaxes included.
(02:41):
Having said that, though, whatI've noticed since our last
conversation, james, is thatthere has been a lot of dentists
who are interested in leasingelectric vehicles.
Now, there are obvious taxadvantages to doing that, but,
from a road tax perspective, thegovernment have recently made
changes to the way the road taxsystem works and, specifically,
(03:04):
the way that it's going toimpact on EVs or electric
vehicles.
So, from now onwards, electricvehicles are going to be taxed
at £195 per year.
That is going to be starting inyear two.
If you're getting a brand newvehicle so brand new vehicles in
2025, you start off with justpaying £10 for the year, and
(03:25):
then, from year two, it'll be£195 for every year after that.
Now, that will be includedwithin your lease payments, so
you will see a very slightincrease in terms of your lease
payments compared to what wouldhave been the case had you got
your lease in, let's say,january or February of this year
.
So it would be marginallydifferent, but it's nothing
(03:45):
that's too dear in the pocketlet's put it that way but it is
something to be mindful of, thatthat does exist and that that
will be included within yourpayments.
So, yeah, something to bemindful of, I think, for us, as
far as dentists are concerned.
Dr James (04:01):
That's the government being the government right there
, right, when they have thetax-free incentive, they always
amp it up afterwards, right?
Whatever that is, be that cars,be that whatever anything under
the sun, but I guess it's, it's, it's how it works.
It's not, no, it's not to beunexpected, uh.
So yeah, interesting.
Okay, fair enough, and in termsof things that we can do to
(04:23):
navigate that, do we just haveto take the hit?
Basically?
Ammar (04:27):
Yeah, in a nutshell, yes, and it's not as bad as having
road tax on other vehicles.
There is, of course, what'sknown as luxury tax, which is
there as well, and it soundslike something out of Monopoly,
doesn't it?
Luxury tax, which is over acertain threshold.
(04:53):
I believe that threshold is£40,000.
If the value of that car isover £40,000, you pay a luxury
tax.
I believe they were going to becharging that luxury tax on EVs
as well.
That has now been reversed, sothat's no longer the case
anymore.
So, luckily, luckily for thosewho are looking to go EV you're
not going to be paying luxurytax for that.
But if you do decide to go forsomething really nice a Porsche
911 or something along thoselines then, yes, you would be
(05:16):
charged a luxury tax and that'sjust something you're going to
take on the nose.
Unfortunately, it's just the waythings are.
You're absolutely right in thesense that you know that's just
generally how government havedone things.
It's fascinating to see thehistory on this and I won't
delve into it for too long.
But what's really interestingis, if you look at this compared
to five, maybe even 10 yearsago, there were humongous
incentives for people to go EV,whether that's free charging, no
(05:40):
road tax, incentives toactually cash back, incentives
when it comes to buying thevehicle itself or even charger
installs as well.
But slowly, slowly, they'retaking away these little prizes,
one by one, and I think theroad tax is probably the final
nail in the coffin.
I would say I don't thinkthere's much further they could
do to strangle us, although I'msure the government have got
some very interesting ways ofdoing that.
Dr James (06:03):
Yeah, let's not speak too soon shall we.
They might be innovative andcome up with something.
But you know there's actuallynot to digress too much.
There's a slight parallel inthe world of finance, I feel,
whenever it comes to this stuffand that is the lifetime
allowance on pensions.
I don't know, yeah, they've,they've.
(06:24):
You know what they did?
Right, they never had it Thenin like 2012,.
They brought it in.
It was 2 million.
Now you might think that itwould go up with inflation.
They actually brought it downover the years to like 1.2
million.
Uh, now they've done away withit for the moment.
But watch out, guys, is probablya big old honey trap, if you
ask me, because then people willstart topping up their pensions
again until the governmentdecide that they're going to
bring it in again, basically,which I think they will
(06:44):
personally.
But listen, all just opinion.
We don't know for sure.
Don Don't listen to menecessarily.
It's just an interestingobservation Sole trader versus
limited company with regards toyour car finance.
Dennis loved this conversationwith regards to their tax
position, so interested to knowhow the whole car finance
(07:05):
dynamic plays into that as welland what's changed as well,
actually, on that front.
Ammar (07:09):
Yeah, really, really interesting.
So what I found as anecdotalevidence, james, is when
dentists would want to takeadvantage of the opportunities
within leasing, the main hurdlethat was there is that these are
dentists who have recently setup as company directors and
(07:30):
don't really have much to showin terms of history of trading.
They're very, very new.
So they're looking to have awhole bunch of different
bolt-ons as far as their companyis concerned when the company
has just been brought intoexistence.
And so the challenge was to tryand get a funder that would be
(07:51):
interested in actually providinglease finance or asset finance
for vehicles for these companyowners.
And now, as very, very recently,I've managed to build a new
partnership with a financecompany that are willing to do
that actually, which isabsolutely fantastic, are
(08:13):
willing to do that actually,which is absolutely fantastic.
So now it's no longer a casewhere I'm telling dentists to
say, hey, you need at least ayear and you need to have a
strong director's guarantee or apersonal guarantee, and you've
got to make sure your creditscore is phenomenal in order for
your finance to go through.
That's no longer the case.
You could have it for under ayear's trading as well.
That's absolutely fine and wecould potentially get you the
lease finance that you're after.
So that is really really goodnews, and I'm just hoping that's
(08:35):
going to open up the floodgatesfor dentists to apply for
leasing agreements as and whenthey need to, so they can take
advantage very, very quickly.
Dr James (08:45):
You know, again, not to digress too much.
There's a little bit of aparallel when it comes to
mortgages in what you've justsaid, because a lot of the
standard kind of copy pasteadvice from a mortgage broker is
, hey, you need two years ofaccounts before we can talk
about mortgages.
But when you talk, that's notnecessarily true.
It's just knowing which lendersare out there can overcome that
(09:08):
or have solutions to overcomethat, right?
Uh, so a lot of dentists,myself included, operate on the
basis that that's a limitationthat we just have to accept.
But it's actually not true, youknow, uh, it's just means that
potentially the people that youcan work with for a little bit
more limited, but it's justknowing who they are Right.
And the the thing that I alwaysremember I asked, and I'd be the
(09:30):
reason I'm telling this storyis to pull it back to car
finance in two seconds, right,but I remember saying I remember
when a mortgage broker told methat one day and I was like
surely there's a catch in termsof, like interest rates and
stuff like that.
And the answer is there is, butit's nominal, it's much less
than you might expect.
You might expect.
(09:55):
How does that translate to thecar finances, would the interest
rate be a little bit higher.
Is that correct?
Or what are you finding in?
Ammar (09:58):
your experience?
Yeah, absolutely.
So, look, of course, becausethis is going to be a unique
proposition because there arenot so many companies that are
willing to do that and the riskis slightly higher.
To mitigate for that risk,they're going to be putting
safeguards in place.
So, whether that it'd be theinterest rate being a little bit
higher on, for example, if youwere to take out, let's say, a
used vehicle and if you were toget a PCP because that's where
(10:20):
interest would be charged thenyes, you'd be looking at
potentially a higher interestpayment.
You'd potentially be looking at, in a worst case scenario, you
have a situation which is knownas max advanced, so that's where
they'd only be allowing to lendyou a certain amount of ceiling
and not allow it for any more.
You'd have to put down a biggerdeposit, which may be the case,
(10:41):
but that's very, very rare.
So, to answer your question,the reality is is that, yes, it
would be a little bit more, butit would be a short term pain,
because the other reallyinteresting thing about this,
james, if let's say so, I'mgoing to use the used car
finances example here because Ithink it's more pertinent If,
(11:02):
let's say, you were to go aheadon a PCP agreement right for a
vehicle that's, let's say, twoyears old and your interest rate
, let's say, is, for our givensake, 14.9%, right.
And you know you're making yourmonthly payments.
You know you've been generallygood, you've not missed any
payments on any other creditagreements that you may have.
You know your credit worthinessis getting better and better
(11:25):
and better.
In six to nine months time wecould always relook at that and
say, hey, you know, actually theeconomic landscape has changed.
Interest rates have come down alittle bit.
Your score is also improved.
Looks like we could get youinto an agreement for 9.9
instead, shall we refinance it?
And you could get you intosomething way better.
So the idea, james, is actuallyto be able to get dentists
(11:45):
through the door.
So if you imagine that door isshut, they just got to sort of
jam your foot in initially,before it's then propped open.
If you see to be able to enterinto something which is a little
bit better, does that?
Dr James (11:55):
make sense.
It completely makes sense.
So it's a little bit of abridge right to speed things up.
And it doesn't mean justbecause the rate's higher
doesn't mean that it's locked in, because the option is there to
refinance, which is somethingthat you'll know.
You'll know how that's done.
Basically, there's no kind ofminimum period.
I'm guessing that you have tobe locked in, for you can just
(12:18):
switch that as soon as thingsare more favorable.
Is that correct?
Ammar (12:21):
That is the case in terms of used car finance, correct.
When it comes to leasing avehicle, it is slightly more
stringent.
So, with leasing, the way thatit works is that you are tied
into a contract.
So if it is going to be, let'ssay, two, three or four years,
you're going to need to makesure you stick to that, because
if you are going to exit early,the termination fees are high.
Having said that, though,there's no real interest
(12:42):
involved when it comes toleasing, right?
So that's just something to bemindful of.
So that's always quite usefulto know.
And so, as a result, people arejust paying that equal monthly
installment that doesn't changeover the two, three, four years.
It doesn't matter what happensto the shape of the economy or
what happens to the value of thecar.
It could go up, down sideways,it doesn't matter, it stays the
(13:04):
same.
You don't have to worry aboutit, you just keep making your
payments and you give the carback.
Dr James (13:06):
It's dead easy.
Fascinating, and is thatsolution you talked about just a
second ago?
Is that unique to specificallydentists?
Ammar (13:13):
So yeah, so that, to be fair, that could be done for
anyone.
But I think you know, when itcomes to dentists specifically,
if you think about the fact thata lot of these companies are
quite new in terms of theirsetup, then, yes, I think this
solution is actually quite auseful one where we can get
people initially through thedoor, perhaps, if they are going
for a used vehicle and theinterest rates are slightly
(13:34):
higher and, yes, perhaps youknow, just getting them through
the door initially, or even on alease.
You know, the lease paymentsmay be slightly higher because
the funder has decided that therate on that vehicle is slightly
different.
But again, that's just to beable to get them through the
door initially.
We could always go back and geta different vehicle once they
are up for renewal.
So, yeah, there's a lot of waysto do it, lots of flexibility.
Dr James (13:56):
Interesting because I mean business opportunity, right
?
I mean, how many associatedental companies default, right,
like it's not, you know, it'snot the.
Those companies don't haveoutgoings right, beyond what the
dentist is taking out to paythemselves most of the time,
right?
So I mean in terms of a lenderbeing willing to how many?
(14:18):
You know dentists, by and large, you know, get paid pretty well
and have a little bit morecoming in, and they're I know,
not all of them are this way,but they're generally very
responsible with their money,right?
So, yeah, the interest therecould be a business opportunity
there for some entrepreneurialcar finance person at some stage
to specifically offer solutionsfor dentists, saying as they're
that much more of a low risk interms of a niche and what have
(14:43):
you something to think about?
I don't know, I don't know.
That's kind of what I wasgetting at.
It's not.
This company hasn't penned boxthemselves in specifically
dentists.
It can just be for anybody, canit at this point?
Ah, okay, interesting.
All right, let's talk aboutsomething that we mentioned off
camera, factory orders, yes, andhow that's changed around in
2025.
Ammar (15:03):
Yes, yeah.
So I think this is more aroundtiming more than anything else.
So, just as a reminder for ouraudience, so when it comes to
brand new vehicles which arelooking to lease, new vehicles
come out twice a year, all right.
So one will come out in Marchand the next one will come out
in September, and so you'll havenew number plates which are
(15:24):
registered according to whenthat vehicle comes out.
So, in 2025, the vehicle willread letter, letter and then the
number 25 to show that it'sbeen released in March 25.
In September, it'll read 75.
So a letter letter 75 will showthat it's September.
Now, a lot of people quitefancy having a brand new vehicle
(15:45):
, right?
That's just something that'sreally nice to have.
When you're driving on the roadwith a shiny brand new vehicle,
right, it looks pretty cool,doesn't it?
And so you know there are somepeople who would really fancy
saying you know, actually, 25plates were three months ago.
I actually want somethingthat's going to be coming in
September and I'd love to be itfor it to be brand spanking new.
And so if you are looking to dothat, the time to do so is now.
(16:09):
And the reason I say that isbecause factory orders take
around 12 weeks for themanufacturers to create.
So, literally, the car is beingbuilt to your specification in
the factory.
To say, right, Mr Dentist hasordered this, make this model,
and he wants this type of brakecalipers, he wants this type of
(16:32):
interior, he wants this type ofexterior, he wants this type of
glass, for example, in thevehicle, these type of seats,
and please go ahead and make it,and they will then make that
specifically.
For example, in the vehicle,these type of seats, and please
go ahead and make it, and theywill then make that specifically
for them.
Bring it into the UK, into port, have the vehicle registered
and then delivered to your door.
So that time takes around 12 to16 weeks, and for that, in
(16:53):
order to be able to get it intime for September, october,
which is when the timing comesin for these 75 plates.
The time to put in those factoryorders is now.
So if you want to do that,definitely a really, really good
time to do so, because whatyou'll find, especially on some
of these more popular vehicles,is that they do take time to
come in.
We're not looking at conditionswhich are extreme.
(17:16):
So I think COVID was probablyjust an extreme example where
sometimes you take a year for avehicle to get made before it
comes through because ofmicrochip shortages, as many of
you may remember.
So that is just an exception,but now I think we're back to
normal.
So, when it comes to factoryorders, generally speaking, 12
to 16 weeks, unless it's areally popular manufacturer.
(17:39):
So, yeah, that's what I wouldsay when it comes to factory
orders Get your orders in now ifyou want something which is
really specific to you and youwant that car which is a
signature for yourself.
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