Due to its cost-savings and tax benefits, more companies are choosing to opt for business car leasing.
Employees can enjoy the benefits of driving a new car every few years and as a company, you can enjoy the many benefits leasing has to offer. From cost-effective motors to hassle-free management, here are just six of the desirable benefits that business car leasing can offer your company.
Improved finance management
It is no secret that running a business is a huge financial strain and managing your budget effectively can help you stay on top of it. Cutting costs in areas such as company cars can have a significant impact on your company finances. Think about it this way, if you were to buy your vehicles outright this would rack up a costly bill. Leasing a vehicle or fleet can require less money to be spent upfront and allows you to budget for a fixed monthly cost.
Your cash flow can be improved as a result of this as you are not needing to spend thousands of pounds on your own vehicles. The money you save from this can be spent on other important aspects of the business.
Minimal payments for the upkeep of the vehicle
Due to the hassle-free nature of leasing a vehicle, most things are taken care of by your leasing provider. There are minimal costs regarding the upkeep of the vehicle as you will only need to pay for fuel and the insurance of the car. It is important to speak to your provider as sometimes there is the option to pay extra for a package that will include insurance in the vehicle price. Most of the time your leased vehicle will not come with insurance so make sure you make a note of that and stay on top of it to avoid any fines.
Safety for your employees
When you lease a business vehicle you will receive a factory finished model. New models are likely to have updated safety features that your staff can enjoy and as a result feel safer when they drive. There is the option for you to lease a second-hand vehicle however it is important to remember that those vehicles will not contain the latest safety features. New models also tend to come with a manufacturer’s warranty to give you and your employees peace of mind.
Benefits through corporation tax
If your company opts for business car leasing from a reputable company like Pink Car Leasing, you may be able to save money on corporation tax. Upon applying for your car lease, you will have to agree on a mileage allowance with your provider. If you exceed this allowance, you will be charged. However, with leasing, this can cost as little as 5p per mile.
If you are a limited company, then you will be able to offset the full cost of these payments and VAT against your corporation tax. If you choose to take out a maintenance package with the company car(s) then you can also claim everything back on that too. It is advised that you always speak to your leasing provider for more clarity on this.
Benefit from business-related discounts
Choosing to lease your business vehicles can give you the control you need. You don’t need to be tied into a long lease if you don’t want to be and you can choose to do it on your own terms. Leasing is a good way for you to work around your budget and with lots of makes and models readily available to you, you are sure to find a vehicle that fits within your company’s budget.
If you are choosing to lease multiple vehicles for your business, then you are likely to benefit from a better deal. Don’t be afraid to negotiate with your provider to make sure you are saving money for the business.
No depreciation to worry about
Over time, vehicles depreciate. This could put a financial strain on your business if you bought your cars outright. However, what is so great about leasing is after your agreement ends, you hand the car back over to the leasing provider. It is important to remember that although you are not the owner of the vehicle, you should treat it with a great deal of care and do your best to stay on top of the upkeep of the car.
It has become apparent that business car leasing is becoming a firm favourite with businesses around the country. It is advised that you do your research and look into what providers can offer you. The beauty of business car leasing is you are not tied into a lease until you agree to the terms. More often than not you can secure yourself a favourable deal with a leasing provider.