Dealer-based leasing for small businesses could transform the way you run your business cars. Here’s why, says Motor Finance’s Brian Rogerson. Have you considered what your local car dealership can offer your business?

There’s a chance they could streamline your car acquisition.

Why?

Because car manufacturers are working with dealers to improve their contract hire lease offering where it matters: in the dealership.

And they are targeting local small businesses.

Audi, Ford, Honda, Toyota and Volvo are some of the leaders here.

Instead of just supplying a hire purchase deal, dealers are now offering contract hire. You won’t own the car. Instead you’ll lease it over a period of time and mileage. At the end of the lease, you can then start a new lease on a new car.

Think of it as outsourcing your business car requirements to a local company: as long as the dealer’s business sales manager can explain the differences between contract hire and finance leasing. And the different benefits these products offer small businesses compared to hire purchase and personal contract purchase.

Tony Kimberley is in charge of corporate sales at Norwich-based Holden Honda. “I cover an area which encompasses most Norwich postcodes,” he explains.

“Most business is obtained locally by canvassing local companies, networking with businesses and cold calling. We also have a presence at premier events such as the Royal Norfolk Show.”

The proactive approach of Holden Honda’s business-to-business sales has been a success: in the first six months of this year local businesses have snapped up 242 Hondas.

Of course, not all local dealers provide the same service as Holden Honda. Leasing companies and brokers can also offer tailored small business contract hire deals. But a local dealer is worth checking out the next time you need a new business car.

The benefits of dealer leasing

• Local business with local business focus
• High levels of customer service from small business specialist
• Availability of special contract hire offers on specific models
• Usership rather than ownership of a vehicle
• Business proportion of contract hire lease tax-deductible
• 50% of VAT reclaimable on lease

Further information

• Brian Rogerson writes for Motor Finance. Visit the magazine here: www.motorfinanceonline.com.
• Read how Graham Twist, director of Astra Security, used his dealer for company car supply: www.businessmotoring.co.uk.
• For more on business car contract hire, go to the Advice Centre article here: www.businessmotoring.co.uk.