Businesses often opt to lease vehicles because they can benefit from flexible contracts and tax incentives. There are several important factors to take into consideration when deciding on leasing.
Vehicle leasing can allow you to free up cash
Purchasing a company vehicle or an addition can require a large output of cash, so vehicle leasing will allow you to free up money to inject elsewhere into the business. This is especially important if the business is relatively new and funds are low.
A point to remember is that leased cars and vans do not come under the company asset umbrella, which means you can claim the payments back each month as a business expense. The warranty supplied by the manufacturer should cover the entire period of the lease, so you will not be liable for paying for manufacturing defects.
Before deciding on a deal, businesses should be aware of the various contracts and their benefits and disadvantages. Company owners often choose business contract hire, which means the business will lease a vehicle from a reputable dealer such as car leasing Leicester. Only the depreciation value will be paid off throughout the contract duration. There are plenty of vehicles to choose from at leasing.totalmotion.co.uk.
Some business owners prefer a hire purchase contract, which gives them the opportunity to own the car or van once the period ends. This can be a good choice if you want to pay monthly instalments and avoid additional costs for excess miles incurred or damage to the vehicle, as it won’t be given back to the company.
BMW chosen as the most reliable brand of car
According to Motoring Research, BMW is the most reliable brand choice, according to the country’s 50 biggest leasing companies.
Short contracts can offer company owners the opportunity to upgrade to the latest model. This can mean taking out a shorter contract – for example, for 24 months. However, a longer lease means that the initial deposit and the monthly repayments will be a lot less.
If a business has an unsatisfactory credit history, the directors should not discount the idea of leasing. Contracts are still available to companies throughout the financial spectrum running for longer periods, usually from 48 to 60 months. It’s also important to remember that leasing can help boost a credit score.