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Why Should A Business Lease Cars?

Why Should A Business Lease Cars

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Low cost, high reward. These are the key advantages of choosing a business lease over buying a company car.

When a business is looking to provide their employees with a new company car, there are a number of different options available to them. A business lease is a quick and cost-effective way for start-up companies or fleet-reliant companies to supply a brand new car that does not deplete in value. 

Business leasing, unlike buying a new car outright, allows you to spread the payments over a longer period of time which reduces your upfront costs and helps your cash flow. While on the topic of cost-cutting, payments made to a business car lease deal are usually classed as a business expense for tax purposes, reducing the net cost of your lease. 

Of course, leasing isn’t the only option available to businesses looking to find a new fleet or company car. Other options include purchasing several different used vehicles and outright purchasing new cars on a hire purchase contract, but there is a reason why business leasing is growing in popularity in the UK.

If you won’t take our word for it, here is a handy guide as to why a business should lease their company cars.

Low Cost, High Reward

The first thing that you should be aware of when researching business car lease deals is how much more you can get for your investment. Securing a business lease is often a cheaper option than a personal lease or buying outright and a business may be able to get more for their buck. For example, what you might pay for when buying a small hatchback outright could be the same as a high-quality saloon when leasing.

When you are planning to provide one or more employees with a company car, especially if they will be driving to business client meetings in that vehicle, you want to make sure it gives a good first impression. As such, having a more luxurious car can be a wonderful way to achieve that. On the other hand, if you require a fleet of vans for your delivery business, high-quality and reliable vans are more economical than cheap second-hand vans that could break down.

A business car lease deal can make this far more attainable, as you will only be paying the depreciation of the car’s value, rather than the entire cost of the vehicle. In addition, many business lease agreements now offer a degree of flexibility at the end of the lease that allows you to choose between purchasing the vehicle outright, refinancing or simply handing the vehicle back.

Tax Deductible

Another important aspect of opting for a business car lease deal is the fact that each payment is tax deductible. By leasing your next company car, you can ensure that your expenses are covered throughout the course of the car lease, and since the payments are lower than if you were buying the vehicles outright, it will help keep your accountants smiling.

On the other hand, simply purchasing a fleet of vehicles can be a very large investment to take on at one time, hitting your bottom line hard.

By using a car lease deal for your company car or fleet, you’ll be able to spread that investment over a longer time. This, in turn, will allow you to ensure that your expenses are kept in check.

Low Maintenance

The final factor that can make or break your decision to purchase a car outright or take up a business car lease deal is the maintenance costs of the vehicles. If you were to buy the vehicles yourself, you would eventually need to cover the costs of MOTs, repairs and more. These can quickly stack up, depending on how much a vehicle is used.

However, if you take up a car lease deal, these typically only last for 3 years. During that time, the car will still be under warranty and you would not need an MOT. Then, at the end of the period, you return the vehicle and can then take up another car lease. With that, you never actually have to worry about significant maintenance costs for your fleet of vehicles.

So, with that in mind, we would definitely recommend taking a look through the various car lease deals available here.

Business Car Leasing Deals | Compare Business Car Leasing and Contract Hire deals – Cars2Buy

Browse our business car leasing section today.