THE UK car leasing market is one of the most competitive in the world, and it’s becoming
more competitive by the day.
That said, there are many reasons why business owners should consider leasing their vehicles. You can lease a new car with low mileage and keep upgrading to a new leased vehicle. This is one of the most popular ways of leasing, as it
allows you to drive the latest models in your desired colour and brand range at a significantly lower cost than buying them outright.
In addition to this, it also reduces your maintenance costs due to the increased lifespan of the vehicle. While there are many reasons business owners should lease cars, these are the five main ones. When considering, it’s best to lease a car from Auto Trader since they are highly reputable and have excellent service. Leasing a car from Auto Trader benefits business owners since they can get an annual maintenance contract for multiple vehicles. Doing this will ensure the entire fleet is cared for and maintained.
1. Low Initial Cost:
Leasing is an excellent way to get started in the business. It allows you to start with minimal investment and spread your costs over time. In addition, leasing doesn’t require any down payment or capital outlay, which means that it will cost less than buying new equipment outright.
The key benefit of leasing a car over buying is depreciation—the value of your leased assets depreciates over time as they age and wear out (or are stolen). This means that if you hire an expensive piece of machinery for two years, then sell it for £85,000 at the end of those two years (assuming no other factors). After paying off all associated costs such as
insurance premiums etc., there wouldn’t be enough left over from selling this item alone, so much less money than initially invested into purchasing the vehicle. Leasing a car assures you of no depreciated value.
2. Simplified Budgeting:
Car leasing allows you to focus on other aspects of your business. This is because, in car leasing, the cost of ownership is included in the monthly payment. You don’t have to worry about depreciation, maintenance, insurance, or fuel costs, as they are all included in one easy-to-calculate monthly price.
Additionally, it’s often easier to budget for parking when you’re paying off a lease rather than buying a car outright and then having to find somewhere safe and secure enough for your vehicle while putting money aside each month so that when it comes time for renewal or disposal, there won’t be any financial barriers holding back growth potential (which can happen if there isn’t enough cash flow).
3. Tax Benefits:
Leasing is a great way to finance your car and save money on taxes.
Tax benefits of leasing:
● You can deduct the lease payments from your taxable income in the UK, making it an ideal way for business owners and those looking to reduce their tax liability. This makes leasing even more attractive as a vehicle financing option.
● You can also deduct any mileage driven for business purposes from your personal records, which means you will not have to pay additional taxes on this income!
4. Freedom To Build Your Brand:
Car leasing is a great way to add flexibility to your business. You can choose the car that
best represents your brand, and it’s easy to change cars if you want to upgrade the image of
your company.
When it comes down to it, this freedom means more than just having access to a fleet of
cars; it allows you to build an identity around whatever vehicle has been leased by your
company.
5. Advantageous Offers:
Car leasing is a great way to save money and drive the latest models of cars. If you own your business, there are many reasons why it makes sense for you to lease cars. You can save on monthly payments by leasing your vehicles with great discounts and offers.
Leasing allows business owners to cut costs by paying for the car over time in exchange for lower monthly payments than what they would pay if they bought outright. This helps businesses keep within budgeted spending limits while also giving them more flexibility when deciding which car or truck model is suitable for their needs at any given time (such
as when travelling with employees).
The car leasing market in the UK is set to grow by more than 20% this year. If you’re looking for a vehicle to help your business grow, then leasing might be worth considering
