Want an answer to a specific enquiry?Contact Us
Business car leasing, and specifically business contract hire, is an extremely popular way of hiring company cars. This is due to the many benefits it offers to business owners.
We have broken down these benefits for you below, and then summarised the different forms of business car leasing including the most common form, business contract hire.
Over half of all company cars are financed as a business car lease. This is due to the several benefits to a leasing offers that make it an attractive option:
The inital outlay required to lease a vehicle is less than a car loan or buying outright, starting from only three monthly rentals, keeping expenditure low.
The total cost of a lease is often cheaper than the finance payments on a car loan or buying a vehicle outright. This allows your business to have improved cash flow.
If you are vat registerd you will be able to reclaim 50% of the vat on the finance element of the rental and if you have a fully maintained contract, you are able to reclaim 100% of the vat on the maintenance element.
For added peace of mind all lease contracts have the option to include maintenance for an additional monthly fee, for a complete hassle free service.
Road fund licence at the current rate is included for the first 12 months with an operating lease and for the full term of the agreement with a contract hire, saving your business even more!
All lease cars come with a full manufacturers warranty that will, in most cases, cover the term of your contract, allowing you to focus on more important business.
Business contract hire may not be suitable if you wish to own or buy the vehicle or change your vehicle as this will result in early settlement charges. Please note you also would not be able to shorten the period of hire by making early repayments.
If you do not know what your predicted mileage will be, if you plan to use the vehicle abroad for any extended periods or if you are looking to use it for specific business such as a taxi, then leasing may not be suitable for you.