Advantages Of Using Car Leasing To Finance Your Company Cars
Vehicle leasing is a good way of a VAT registered business to lease a car for a particular period of time, for a fixed annual mileage as well as at a fixed monthly payment. The monthly lease payment is determined by the actual cost of the car, the rental period as well as expected devaluation. Traditionally the lease deal is for about three years and the deposit is about three monthly payments. In addition it is quite possible to include maintenance package into the vehicle lease agreement so that the servicing and extra expenses are already paid for. When the leasing period is over, the business just hands the car back to the leasing company.
Below there are some benefits of auto leasing for businesses:
- By leasing a vehicle your financial resources could be freed up. Using auto leasing you could improve the cash flow of your business since there is much less spend initially. You could minimize your running costs since maintenance and breakdown insurance can be added to the monthly rental charge adding to your peace of mind.
- One of the main advantages of vehicle leasing for businesses is the VAT incentives. The VAT payable on the finance could be claimed back if the car is used for business purposes and half the VAT could be claimed back if the car is made available for business use and personal use.
- Because all the costs are calculated at the time of the deal and included into the fixed monthly payments, you can forecast your car budget for several years in advance. As well you could include into your monthly payments replacement tyres and exhausts, servicing and vehicle tax.
- Devaluation is suffered for all cars and is the loss of value over a certain period of time. At the end of the first year, an average vehicle will have lost about 40 per cent of its value and 60 per cent at the end of third year. Some cars will devaluate at such a rate that they become almost worthless after three year. Leasing a car means that devaluation is no longer an issue for you to worry about.
- Vehicle leasing allows your business to select from great range of models, makes, colors and specifications. As a rule car leasing companies purchase in bulk and have the latest models as well as offer competitive vehicle deals.
- Brand new and well maintained vehicles could improve the image of your business with existing and potential clients and you can be able to afford a more prestigious vehicle than you could even think about.
- Because each vehicle is a subject to an annual review, it has to be possible to reduce or increase the mileage allowance or to remove or add the maintenance package. It could be quite advantageous if a car is covering a higher annual mileage than was originally thought.
Car is one of the best ways for moving. Those who are planning their trip to some place might need information about car leasing. But in some cases people travel by groups like usual or business tourists so it is better to search for van leasing.
So if you have decided to lease a vehicle, then it is recommended to familiarize yourself with van leasing beforehand. Just search Google or other search engines. It’s also nice to visit social networks and have a look on the accounts that are relevant to your topic. Go to the forums and participate in the discussion. All this will help you to make a smart and nicely balanced decision.
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Author: arfandia
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