Why Should A Business Lease Cars?
29 Sep 2020
When a business is looking to either purchase a company car for an employee or start using a fleet of cars, there are a number of different options available to them. These range from purchasing a number of different used vehicles, outright purchasing new cars on a hire purchase contract, or looking into car leasing.
Of the three, there is a very good possibility that car leasing is the best option. But you’re not about to just take our word for it, so let’s take a look at why that is!
Low Cost, High Reward
The first thing that you should be aware of is how much more you can get for your investment when it comes to car leasing. For the same ongoing fee as you would play to buy a small hatchback outright, you may be able to get a high quality saloon.
When you are planning to provide one or more employees with a company car, especially if they will be driving to business client meetings in that vehicle, you want to make sure it gives a good first impression. As such, having a more luxurious car can be a wonderful way to achieve that.
A business car lease deal can make this far more attainable, as you will only be paying the depreciation of the car’s value, rather than the entire cost of the vehicle.
Tax Deductible
Another important aspect of car leasing as a business is the fact that each payment is tax deductible. This way, you can ensure that your expenses are covered throughout the course of the car lease, and since the payments are lower than if you were buying the vehicles outright, it will help keep your accountants smiling.
On the other hand, simply purchasing a fleet of vehicles can be a very large investment to take on at one time, hitting your bottom line hard.
By using a car lease deal for your company car or fleet, you’ll be able to spread that investment over a longer period of time. This, in turn, will allow you to ensure that your expenses are kept in check.
Low Maintenance
The final aspect that can really make or break your decision to purchase a car outright or take up a car lease deal is the maintenance costs of the vehicles. If you were to buy the vehicles yourself, you would eventually need to cover the costs of MOTs, repairs and more. These can quickly stack up, depending on how much a vehicle is used.
However, if you take up a car lease deal, these typically only last for 3 years. During that time, the car will still be under warranty and you would not need an MOT. Then, at the end of the period, you return the vehicle and can then take up another car lease. With that, you never actually have to worry about significant maintenance costs for your fleet of vehicles.
So, with that in mind, we would definitely recommend taking a look through the various car lease deals available here.
Of the three, there is a very good possibility that car leasing is the best option. But you’re not about to just take our word for it, so let’s take a look at why that is!
Low Cost, High Reward
The first thing that you should be aware of is how much more you can get for your investment when it comes to car leasing. For the same ongoing fee as you would play to buy a small hatchback outright, you may be able to get a high quality saloon.
When you are planning to provide one or more employees with a company car, especially if they will be driving to business client meetings in that vehicle, you want to make sure it gives a good first impression. As such, having a more luxurious car can be a wonderful way to achieve that.
A business car lease deal can make this far more attainable, as you will only be paying the depreciation of the car’s value, rather than the entire cost of the vehicle.
Tax Deductible
Another important aspect of car leasing as a business is the fact that each payment is tax deductible. This way, you can ensure that your expenses are covered throughout the course of the car lease, and since the payments are lower than if you were buying the vehicles outright, it will help keep your accountants smiling.
On the other hand, simply purchasing a fleet of vehicles can be a very large investment to take on at one time, hitting your bottom line hard.
By using a car lease deal for your company car or fleet, you’ll be able to spread that investment over a longer period of time. This, in turn, will allow you to ensure that your expenses are kept in check.
Low Maintenance
The final aspect that can really make or break your decision to purchase a car outright or take up a car lease deal is the maintenance costs of the vehicles. If you were to buy the vehicles yourself, you would eventually need to cover the costs of MOTs, repairs and more. These can quickly stack up, depending on how much a vehicle is used.
However, if you take up a car lease deal, these typically only last for 3 years. During that time, the car will still be under warranty and you would not need an MOT. Then, at the end of the period, you return the vehicle and can then take up another car lease. With that, you never actually have to worry about significant maintenance costs for your fleet of vehicles.
So, with that in mind, we would definitely recommend taking a look through the various car lease deals available here.