Whether you need to travel to get to work or your job requires to travel all over the country, having a can be the most useful form of transport. Car’s are a lot more reliable and give you the independence to go anywhere you please.
But what happens if you need to travel for business but you do not have a car?
Well there is always the option of business car leasing. This will enable you to have a brand new car with all the latest features almost straight away. As an advantage, if you lease a car through a business you as an individual are at a less of a risk. Although to receive an approved business lease you will need to have a good idea of your credit on the business accounts as these will be checked against the approval. Like a normal car lease monthly payments will be required once the lease has been agreed, however as a business lease these payments can be seen as expenses which can be counterbalance against corporation tax. By also taking out a maintenance contract as well as a business car lease means that all of the VAT paid on that lease will be reclaimable.
So how does business car leasing work?
After you are credit approved through the business accounts, you will place your order which covers your specific requests, and then you will need to pay a deposit as a financial commitment to the contract agreed. Once the deposit has been made and all other paperwork had been completed and signed, the delivery date will be set and you will then need to pay the first initial payment to the company which is dealing with the financing of the lease.
Like normal car leases the initial payment is 3, 6 or 9 times the monthly amount. Servicing however all depends on the length of your contract. Like all new lease cars you have peace of mind that you will not have to worry about the MOT of the car unless you have four year contract, as the MOT will be required on after the third year. If you do decide to take out a maintenance contract with your lease, any services, MOT, wear and tear will be covered within your maintenance contract.
Are there any advantages of having a business car lease?
Well for starters people always say that “the best impression is always the first impression”. You may not think this is important when leasing a car but for business this can make a big difference. Although the idea of social classes are slowly blending over the years, it goes without saying that when you rock up in a fancy or expensive car to a business meeting people will picture you as person from a relatively wealthy background. From this an idea of “importance” can be clearly identified and can make a really strong impression. Other advantages are some that were mentioned previously, like the fact that when you decide on a business car leasing, you will be covered by certain business expenses which can cut the overall cost down significantly.
Of course with all advantages come disadvantages, and when it comes to business car leasing some of the disadvantages are that as the vehicles are not considered as assets of the company the devaluation cannot be written off for tax purposes. Other tax issues similarly can arise such as the number of vehicles and the amount of mileage that can be claimed for. Like normal leases there will be mileage limitations where anything over the agreed limit will be charged with additional excess fees. As a business you are still required to provide your own fully comprehensive insurance on all leased vehicles.