Business car leasing

Leasing a car for your business involves making regular, fixed payments to hire a vehicle on a monthly basis. This has a smaller impact on your accounts and cash flow as there is no lump sum and the company that you hire the vehicle from takes full responsibility for maintenance and repair costs.

You’ll also be able to upgrade to newer models when you continue the contract which will not only give you new cars but a great company image. The only downside to business car leasing is that there might be limits on annual mileage and you’ll never actually own the vehicle.

Hire purchase

A hire purchase is a combination of leasing and buying a vehicle.

This way, the vehicle can be bought after an initial deposit and several monthly payments. If you’d actually want to eventually own the vehicle but need to spread the cost then hire purchase is a great option. Just be aware that interest rates can be high and you have to calculate whether your company would be able to keep up the repayments.

It’s important to assess what the best company car arrangement is best for your type of business. If you’re looking to manage a fleet of vehicles then it might be better to hire purchase whereas if you want your cars to be regularly updated then a lease could be the option for you.