Business car leasing is an alternative way for companies to acquire a car or fleet of cars for business use. Over the past few years many companies are starting to see the advantages of taking a car on a set lease contract over buying outright.
While you may be initially put off of paying for a car that you’ll never own outright, it’s worth noting that cars depreciate and plummet in value the minute you drive them off of the dealership forecourt.
The fact you’ll be losing thousands of Pounds instantly when you buy a car should be enough to make you really consider a lease contract for your business, but there are other benefits too.
Leasing a car means you won’t have to pay out any high costs up front from your businesses funds, and you’ll also be able to afford a better quality car than if you bought outright. If you were to compare monthly payment for leasing compared to monthly payment for a car loan, you could end up paying 55% less. That’s quite a saving!
Some of the benefits of Business Car Leasing:
– No hassle selling a car years down the line
– No high upfront costs paying for a new car outright
– You’ll probably be able to afford a car usually out of your price range
– You’ll be able to offset some of the costs of leasing against your tax
– You’ll be able to pay small, monthly fixed payments
– The car manufacturer warranty will usually cover the lease period
– Access to newer cars every few years with the latest technology and best available fuel economy and C02s
What is the process of Business Car Leasing?
If you’re already familiar with any other form of leasing then you’ll find that leasing a car for your business is a similar process. It’s essential that you look around for the best deals currently available and draft up a shortlist of makes and models of cars. When you’ve completed your list, use a website like Plan Car Leasing to find the latest lease deals.
Going ahead and signing a contract for a lease car means you are obliged to make regular payments over a set period of time, for example 48 months. Typical business car lease contracts are 12, 24, 36 or 48 months.
Once your contract term ends you return the car to the lease company, where you can walk away with no further obligation other than making sure the car is returned within the BVRLA fair wear and tear guidelines and you are within your mileage allowance, or even lease another car on a new contract. In some lease types you may be given the option to buy the car. Always make sure you know what type of lease you’re taking out before going ahead and committing and signing a contract.
Popular cars and manufacturers for Business Car Leasing
Some of the most popular car manufacturers for executive business car leasing include BMW, Audi, and Mercedes because these brands give the company the right image when meeting clients and have higher residual values. The Audi A1, BMW 1 Series, and Mercedes A Class are all very popular choices, and there are usually great deals available on these.
Some of the most popular car manufacturers for small business car leasing include Volkswagen, Peugeot, Renault, Citroen, and Nissan because they are cheaper to lease but still give out a great image for the company, especially if there is custom signage added with the companies logos. The Volkswagen Up, Peugeot 108, Volkswagen Polo, Nissan Micra, and Citroen C1 are very popular choices, as there are lots of deals available for under £150 a month.
Popular types of business car finance
Business Contract Hire: This is the most typical form of car leasing. You’ll take control of a car for a set period, paying fixed payments (which are usually monthly) for the entire term of your contract. You’ll never actually own your car but are free to give it back at the end of the term and get a new car with a different lease contract.
Finance Lease: VAT registered companies normally use this method of vehicle financing, but partnerships and sole traders can also benefit from a finance lease too. The car will remain the property of the finance company, with it essentially being hired out to your business. Your business will then be able to use the car as an asset while paying rentals and not a repayment.
Where is the best place to lease a car for your business?
There are countless leasing websites online now, but the ideal place to find car lease deals is at Plan Car Leasing. They’ve been in the leasing business since 1998 and have provided 1000s of businesses with cars around the UK. Check out their deals now to find your car.