Car Leasing Benefits Make Leasing Better Than Buying
Leasing your Company Cars and Commercial Vehicles makes more sense than ever these days. Every year, more companies are choosing to lease their Business Fleet rather than purchase their vehicles, and for good reason!
Businesses are always looking to get the best value when acquiring their Company Cars and Vans, especially in times of recession when money is tight. Car Leasing can certainly provide this. In fact, with many of the Car Leasing Special Offers around at the moment, the amount it would cost you in monthly rentals over the contract period is actually less than the amount that you would lose in depreciation over the period if you had purchased that vehicle. Why would you want to own your vehicles when Fleet Leasing is so cost effective?
Here are the Top 10 Reasons To Lease Your Business Fleet:-
- Easy Budgeting – One of the main benefits of leasing a car is that you know exactly what your motoring costs are going to be. All costs are rolled into one monthly payment which can include Servicing and Maintenance, Tyres, Roadside Rescue & Recovery and Road Tax – so no surprise bills along the way!
- Low Initial Outlay – Improve cashflow by putting down as little as 3 rentals in advance to lease a car or van, rather than thousands of pounds deposit when purchasing a new vehicle
- Drive A Better Car – Improve staff retention and attract new staff more easily by offering employees the incentive of a better car than they would otherwise receive because of the low cost of leasing a car compared to buying.
- Forget Depreciation – No more worries about how fast your vehicles are depreciating (most vehicles lose 50-60% of their value over 3 years), and none of the hassle of part-exchanging or selling off your old vehicles
- Flexible Terms – A car leasing contract can be from 2-5 years and annual mileage, whilst pre-set, can usually be adjusted up or down if your circumstances change during the contract period
- End Of Contract Options – Your end of contract options allow you to extend the term by a further 6 or 12 months, request a purchase price to buy the vehicle, or simply hand the car back with no further commitment.
- Tax & V.A.T. – Up to 100% tax relief is available on the lease rental payments, and you can reclaim 50% of the VAT on cars and 100% on commercial vehicles (100% of the VAT is reclaimable on the Maintenance element)
- Reduced Admin – You won’t be receiving separate bills for each service, repair or tyre, etc. as everything will be included on one monthly rental invoice
- Improved Balance Sheet – Contract Hire vehicles do not appear on your company’s Balance Sheet as you do not own them, enabling you to show a better set of accounts to potential lenders or investors
- Fleet Management & Accident Management Services are often provided FREE OF CHARGE by your Car Leasing Broker, which improves efficiency and can save you a lot of time
So, as you can see from the Benefits Of Leasing A Car listed above, Car Leasing is a convenient, cost-effective and hassle-free way of financing your Business Fleet, and has many advantages over purchasing. It’s a straightforward way to finance new vehicles, especially if you are not interested in ownership and are happy to simply hand the vehicle back at the end of the contract.
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