Since new car sales have declined in the UK it’s given a rise to other options of acquiring brand new cars. Now that the banks and finance companies want to increase lending to encourage movement within the economy, it has made “car leasing” a now much preferred option for SMEs and affluent professionals.
The best way to find a good deal is through car leasing brokers, they pull together a huge range of cars available on finance from a nationwide network of partners. With a multitude of options varying from the type of car and model to mileage allowances and contract terms they can make sure SMEs find the right leasing deal.
Company cars for business
When starting up a business it’s important to consider finances, reduce unnecessary overheads, expenditures and investing more towards marketing and operations of the business that bring in the revenues.
Although you may save by using public transport to get and from work and client meetings you will find it’s not always the case if you are mobile more than an average of 2 hours per day. The convenience of driving business lease cars gives you more flexibility, control and saves you a lot of time and hassle. And let’s face it turning up to a client meeting in a brand new car does make a good impression.
Having a car on business lease does restrict your insurance and finance agreement to only cover you to drive the vehicle during working hours. Hence why you may realise that it costs less with limited mileage allowances but this can be easily customised to your preferences according to your needs with additional costs.
The costs of leasing a car on business finance can also be offset as a business expense and if you’re business is VAT registered you can even claim this tax back reducing the monthly payment even further.
Lease cars for working professionals
If you’re a one-man band or have a small start-up with a relatively good past credit history with a steady income then you don’t have to wait for your business to prosper or the company you work for to build up high revenues before committing to a brand new lease car.
Furthermore, if you don’t want to be limited to drive your lease car particularly for work and prefer to also use it for personal purposes at your leisure then you’re probably better off to find and compare lease car deals with several finance options. Although you won’t be able to offset this as a company expense or reclaim the VAT but you may still be able to claim the mileage you incur at work at the current rate of 40p per mile which can more or less cover the cost of the monthly lease amount.
One thing to consider though personal car leasing usually comes at a premium because the way you use the vehicle without restrictions of use but be sure the mileage allowance covers your lifestyle.