Is your business looking for a new company vehicle? Instead of getting locked in on an expensive financing contract, your company may benefit from business car leasing. This flexible option can expand your choice of cars that otherwise wouldn’t be available. Let’s discover a bit more about why businesses are exploring leasing options for their vehicle needs.
Why Businesses Are Turning to Leasing
Lower Upfront Costs & Predictable Payments
From the start, you can receive upfront savings with business car leasing. On average, down payments are less than they would be if you chose to finance. Monthly payments are also more affordable, which helps with planning your budget.
Tax Benefits & VAT Advantages
When a vehicle is used for business purposes, you may be able to claim tax relief. If a vehicle is strictly used for business purposes, you’ll be able to reclaim all the VAT on fuel.
Improved Cash Flow for Business Growth
Your company can immediately benefit from affordable monthly payments. This grants you financial flexibility to manage your expenses and allocate funds to areas that can improve your business.
Flexibility & Convenience
Access to the Latest Vehicle Models
Instead of being limited by budget constraints and large upfront payments, you can choose from the most stylish and technologically advanced vehicles on the market.
Easier Fleet Management for Businesses
Many business car leasing plans come with options for maintenance and servicing which can be advantageous should any vehicles in your fleet require repairs.
No Depreciation Worries
You won’t have to worry about selling your vehicle or the chance of its value dwindling. Leased vehicles are returned to the provider at the end of their contract.
Employee Benefits
Green Schemes
Employees can benefit by enrolling in a green car scheme, where employees would sacrifice a portion of their monthly income to cover leasing costs. This allows business owners to promote greener and sustainable practices beyond company vehicles.
Comparing Leasing vs Buying
Cost Breakdown Over Time
On average, leasing will have lower upfront and monthly costs. The monthly payments from buying a vehicle will eventually lead to ownership but could lead to risks such as vehicle depreciation.
Maintenance & Repair Considerations
In most lease plans, you have the option of receiving maintenance and repairs at no additional cost. If you’re buying a car, you’re responsible for its condition and the costs of any repairs.
Which Option Suits Your Business?
For SME businesses, it can be more manageable to have predictable monthly payments that come with leasing.
How to Get Started with Business Car Leasing
Choosing the Right Lease Plan
Find a customisable lease plan that suits your budget.
Understanding Lease Terms & Conditions
Review the terms and consider a lease deal that allows you to adjust the contract length and annual mileage based on your business needs.
Finding a Reliable Leasing Provider
Choose a trusted provider with over a decade of experience that comes highly rated.
Final Thoughts: Is Leasing Right for Your Business?
Car leasing is a flexible payment method that provides your business access to state-of-the-art vehicles that can save you money in the long term. Regardless of the decision you make, it’s important to be aware of all your options. Consider your budget, and most importantly, what works best for your unique business.