There are many benefits of leasing a car over purchasing. Please see some key points below.
• No major upfront costs
Usually only a small initial deposit is required when leasing a car. The deposit amount is normally the same value as between three to six months rental. A higher initial payment is possible which can reduce the additional monthly payment costs.
Most capital asset acquisitions are for at least two purposes: Either to gain the use of the item leased, or to reduce costs. With a small upfront cost on a lease, businesses can obtain the vehicle without sacrificing cash flow, and put this saved money to better use.
• Fixed payment amounts
All of our leases are based on a fixed interest rate and remain constant, unaffected by bank base rates. This gives certainty and allows for accurate budgeting for the leaseholder.
• Tax deductible
Another one of the advantages of leasing a car is that all payments on a lease agreement are deemed an operating cost to a business. This can reduce the tax owed on profit by up to 100% of the total cost of the lease.
• Alternative to bank loans
When leasing a vehicle, as outlined before, no major initial deposits are required. This can save you money, business liquidity and prevent the need to take out a bank loan.
• Always the best vehicle available
In the long to medium term, the cheapest car leasing option is not always the best option. When dealing with leasing vehicles for a business, it is important to have the most up to date vehicle to capitalize on fuel efficiency, running cost and reliability. Affordable monthly payments let you get the best available vehicle rather than a “quick fix” upfront payment for a less suitable vehicle.
• Reduced admin
When taking out a Contract Hire lease, there is the option to have the contract fully maintained when leasing a car. Regular services, replacement parts, overnight services, service reminders, replacement tyres and manufacturer recalls. With all these contained and covered with your agreement, you can rest assured and not have to worry about spending time and effort on the upkeep of your vehicle.
• Easy scrappage
Both personal and business leasing is covered by us when it comes to end of working life vehicle disposal. All residual risk is taken by the leasing company, although there will be excess charges if damage is above what is deemed fair wear and tear or if the mileage allowance is exceeded.