Many businesses, from sole traders to large limited companies, are familiar with business car leasing and the benefits they bring to an organisation. Businesses across the UK choose to lease their vehicles in order to reap the many benefits and cost savings that can help a company to grow. If you are a young company or new to business car leasing, our quick guide will help you understand everything you need to know in order to get your business off the ground and on the road.
What Is Car Leasing?
A with any contract, your business would pay a monthly sum over an agreed period in return for a fleet or individual vehicles. The contracts typically cover all aspects of car ownership, but suppliers may vary on how much they offer in your contract. Your business would never have full ownership of the vehicle or vehicles you lease, and once your agreement has come to an end, you would simply hand the car back over to the leasing provider. Leasing provides companies with the opportunity to have the transportation that they require without the financial risks that generally come with owning a car outright.
How To Lease Vehicles
When you decide that your business would benefit from having a car leasing contract, it’s time to find a supplier. Most companies offer a range of vehicles to meet your organisation’s every need, with hybrid and electric vehicles from Pink Car Leasing becoming increasingly popular for business car leasing.
Costs for contracts vary significantly depending on your companies needs and the size of your budget, as most deals can be tailored to fit around your business requirements. Most suppliers request an initial deposit at the start of the contract, and the remaining cost is then divided into monthly payments. Unless your leading supplier provides insurance, you will need to arrange this before you take the keys for the car or fleet. However, tax is often included within the terms of the contract, and you should discuss this with the provider during the initial stages of the deal.
Why Do Businesses Choose Leasing?
A business lease is ideal for every type of company, especially those that are relatively new, as they are not tied down financially by owning their vehicles outright. Business car leasing has a number of benefits including:
- Fixed Monthly Payments: Most leases involve fixed monthly costs, which are ideal for company owners as it allows for more simple budgeting. There are no surprise bills with business car leasing that could put a strain on the budget as the leasing company typically deals with maintenance (if you select this as an option during the arrangement process).
- No Depreciation: One of the biggest downfalls of owning a car is that it begins to depreciate in value from the moment you buy it. When you lease the vehicles for your business, you don’t need to worry about reselling prices to recoup losses when the time comes to upgrade the cars. Once your contract comes to an end, you can hand the vehicles you have leased back to the leasing company and negotiate for a brand new car or fleet in your new contract.
