IF you are a sole trader, partnership or limited company then you may be familiar with business car leasing.
Businesses around the country are choosing to lease their business vehicles and with its vast number of benefits it is clear to see why. If you’re new to the car leasing world then enjoy this beginner’s guide which will give you all the basic information you need to know.
What Is Business Car Leasing?
Much like a phone contract, your business would pay a monthly sum of money over an agreed period in return for an individual vehicle or a fleet. As a business, you would never have full ownership of the vehicle(s) and once your agreement ends you would simply hand the car back over to your leasing provider. Leasing gives businesses the opportunity to have all the vehicles that the company needs without the financial risks that come with owning a car outright.
Why Do Businesses Lease Vehicles?
A business lease is ideal for most companies as they are not financially tied down with regards to owning a large fleet of vehicles. It is important to remember that the vehicle is the property of the leasing company. So, you should treat them with the same respect that you would with your own car.
Business leasing has a number of attractive benefits that have many rushing to sign up. Here are just some of those tempting benefits that may reel you in:
Fixed Monthly Payments: The business lease you take out will typically be fixed monthly costs. This is ideal for business owners as it can allow you to budget a lot easier. There will be no surprise bill costs that could put a strain on your finances. With your fixed monthly cost, you will know where you stand and how much your vehicle or fleet will cost you each month.
No Risk of Depreciation: One of the downfalls of owning a vehicle is the fact that over time your car starts to decrease in value. With a business car lease, you don’t need to worry about it. Once you hand the car back over to the leasing company at the end of the agreement, they deal with that and you get to walk away.
Option To Drive New Cars: Typically, a business car lease will last a few years at most. So, it is likely that you will get to drive new models. This can elevate your driving experience as you will get to drive around in new vehicles but not have to pay the large price tag that often comes with them.
How Do You Lease a Vehicle?
If you decide that a business car lease sounds like a good option for your company, then the process is often fairly simple and all the information is available at the click of a button. If you look up business car leasing online you will find a large range of vehicles available to you where there is sure to be one suitable for your needs.
You can lease a vast range of vehicles from vans to electric cars. Costs can vary dramatically so depending on the size of your budget there is sure to be a lease deal that can fit around your finances. When you pick your vehicle or fleet then you would typically be asked to put down an initial rental which is like a deposit. The remaining cost to lease your car is then divided into monthly payments. It is important to remember that often leases do not come with insurance unless you have arranged this with your provider. Road tax is often included in the price of your lease, but it is recommended that you discuss this with your provider.
There Are Limits
To apply for a business car lease, you will be asked to provide proof that you are a limited or public limited company. Without this proof your company will not be able to reap the benefits of a business car lease. To prepare yourself for the application process it is advised that you have your proof of address, and some bank statements close to hand. ID will also be required for the main director.
To summarise, business car leasing is a great option for business owners across the country. With its cost-effective benefits it is clear to see why. It is advised that you do your research before applying for a lease to see if it is a right fit for your company.