The Benefits of Business car Leasing
Business car leasing has become a popular method for organisations looking to acquire vehicles in not only a cost-effective way, but also an efficient manner. Business car leasing offers many benefits over traditional purchasing options, such as cost savings and access to a more extensive range of vehicle models. This article discusses the advantages of business car leasing and how it can help organisations save time and money.
What is Business Car Leasing?
Business car lease agreements are a finance agreement where a series of monthly payments cover the depreciation value of the vehicle that’s been leased.
These leasing agreements usually run over a fixed period of agreed time, and once the contract length has been finished, businesses can either return the vehicle or negotiate a new agreement on another car. The main benefit of a business leasing a car, is that the company doesn’t have to worry about reselling their cars once used at depreciated values if they are no longer needed.
Benefits of Leasing:
Business car leasing can provide some benefits to companies of all sizes, both in terms of cost savings and convenience. When considered as an alternative to purchasing vehicles outright, there are some clear advantages:
Cost and VAT breaks
When leasing through a business, you won’t need to splash out an extortionate amount of money on a new car which then loses its value when it’s driven over time, you will just be paying for the depreciation of the vehicle over the agreed time period.
Furthermore, leasing through a business can often be a cheaper alternative to personal leasing, due to the VAT breaks. If your company is VAT registered and you can prove that your business car is only used for business purposes, you can reclaim all of the VAT on the monthly payments. If the vehicle is used for personal journeys as well, then half of the VAT can be claimed.
Cash flow
Business car leasing is a cost-effective way to provide your employees with vehicles for business use without taking on the large expense of purchasing. Leasing can help improve cash flow and overall financial stability for your company, without having to fork lots of cash out for the upfront cost of buying a number of vehicles. This money can then be directed to other important areas of the business in the meantime.
Range of models: Choices for style and function
Business car leasing provides a great way to get employees access to cars that provide the function or aesthetic they need for your business. Whether this is a vehicle with off-road capabilities for outdoor use, or a luxury looking vehicle to turn up to business meetings in, this will not only mean employees are better equipped with what they need, but also their morale is raised as they have access to high quality vehicles.
This can also be a great incentive for bringing on new employees and getting them to work harder and aim for higher up positions in the company.
Fleet discounts
Fleet discounts provide companies with access to a large number of vehicles at discounted prices, and by taking advantage of fleet discounts, businesses can reduce costs and make their budgets go further while still maintaining a reliable fleet of vehicles.
Fleet discounts depend on the size and scope of a business’ fleet needs. The more cars needed by a business, the greater the opportunity and potential savings through attractive discounts provided by car leasing firms. Additionally, discounts may also be extended based on certain criteria or conditions met, such as specific payment terms or sign-up bonuses that could benefit a company’s bottom line.
Advanced safety features and fuel economy
One of the greatest benefits of business car leasing is that staff can access the newest vehicles without breaking the bank, meaning they can take advantage of all the latest safety features such as lane departure warnings and blind spot monitoring systems. New cars also tend to have much better fuel economy than old cars, especially if they are electric or hybrid, allowing staff to save money on fuel consumption in the long run.
Comparison to Buying: Lower Costs & More Flexibility
As discussed, there are a number of benefits over purchasing a vehicle outright or through a loan. With lower costs and greater flexibility, business car leasing presents significant advantages for companies of all sizes.
The primary benefit to business car leasing is cost savings. By leasing, businesses can significantly reduce their upfront costs when compared to purchasing a vehicle outright or financing through a loan. Companies also save on ongoing maintenance and repair costs associated with ownership as these are often included in the lease agreement, and, businesses may be able to take advantage of tax deductions associated with leasing that are not available when buying vehicles outright.
Conclusion: Is Business car Leasing a Good Idea?
Business car leasing can be a great way to get access to a fleet of vehicles for your business without having to spend thousands on upfront payments. This method can also allow you to lease newer vehicles than you might be able to afford if buying them outright, meaning staff can take advantage of the numerous features that come with new cars such as electric or hybrid engines, comfortable and advanced interiors and improved fuel consumption.
Business car Leasing at Pendle Lease
At Pendle Lease, we offer a range of business car and van finance deals on different models, makes, and engine size. If you are interested in finding out more about our business car lease deals, contact us directly or call us on 01277 549500 to speak to one of our specialist advisors.
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