If your business needs a new vehicle, it can be difficult to know how to approach acquiring one. You will need to find a car that is suitable for the task, you will want to get a good deal and you may want the automobile on a short-term basis with the option of upgrading in a few years. If this sounds like your business, then you should look to lease instead of purchasing.
Leasing a car could save you a huge amount of money and it does not tie you down to the vehicle. Here is everything you need to know about leasing for business purposes.
Leasing Explained
Leasing a car is essentially hiring it for an extended period of time. If this is for business, this is called Business Contract Hire (BCH) and this is an option for limited companies, partnerships and sole traders. Payments are usually made monthly over a contract of 2 or 4 years, with a small upfront payment normally being required. Once you come to the end of the contract, the automobile is returned to the provider.
Key Benefits
This provides a few benefits for businesses. Firstly, you do not have to worry about depreciation values and selling on the vehicle once the contract finishes. It also gives you the option of upgrading to a new car every couple of years, which is particularly beneficial if your industry relies heavily on the automobile. Not just this, but VAT registered companies are able to claim back a whopping 50% of the VAT for the supply of the car.
Another advantage to leasing a vehicle for your business instead of buying is that you sidestep the financial risk and the burden of owning your own vehicle. This is particularly beneficial for businesses, as it enables them to focus all of their efforts on the company.
Choosing a Car
As an affordable way of acquiring an automobile, it also gives companies the chance to choose a great car. To find the widest range of vehicles to lease, you will need to visit established rental businesses. Shelbourne Motors are one example of a rental business with a selection available.
Leasing is beneficial for businesses in many different industries. With low monthly repayments, no worries about resale value and the option to lease a new car every few years, this is something that all companies should consider if they require a new automobile.
Have you leased a car for your business? What was your experience? Let us know below.
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