6 benefits of leasing a car through a business
Business leasing is becoming increasingly popular with companies and their employees because of the benefits it brings.
But if you’re still unsure whether business leasing is right for you, we’ve highlighted six of the top benefits of leasing a car through a business.
1. No high upfront cost
When you take out a business lease, your monthly payments are fixed and split evenly over your contracted term.
That means your business doesn’t need to make a big upfront payment which may harm cash flow.
It also allows the business to budget accordingly and use its money in other, more important areas to help it grow.
With other lease companies, you’ll have to put down a deposit to secure the vehicle. It can be a sizeable amount, usually up to the equivalent of 12 monthly payments.
However, here at Zero Deposit Car Leasing, we offer exactly that – £0 deposit on all our business lease deals. Meaning your business never has to cover a high upfront cost.
2. Cheaper than personal leasing
Business leasing is usually cheaper than personal leasing because of the tax advantages it provides.
If you or your company is VAT registered, it means you can claim 50% of the VAT back on all your monthly payments if the vehicle is driven for business and personal use.
If it’s solely used for business – and you can prove it – you can claim up to 100% of the VAT back – saving you quite a large sum of money over the contract term.
Also, if you add a maintenance package to your business lease – which covers you for the cost of services, MOTs and anything that goes wrong with the vehicle through wear and tear, i.e. when the vehicle’s tyres need replacing – you can claim 50% of the VAT back on the cost of the package.
3. Avoid being left with a depreciating asset
The vast majority of vehicles depreciate over their lifespan. That means you’ll never get back what you paid for it.
If you choose to buy a car, when you’re done with it, it’ll either be worth very little or you’ll face the pain of having to sell it.
It can be a long, laborious task that may end up costing you even more if you have to advertise or pay selling fees.
However, with a lease, you never own the vehicle, so you can avoid being left with a depreciating asset.
4. Employee safety
Leasing or buying a used car for an employee can be cheaper for the business than a new model.
However, while used vehicles offer great value, they’re not fitted with the latest in safety technology.
Not only will this keep your employees safe on the road, but with most new vehicles nowadays fitted with a cluster of driver aids, including autonomous braking, lane departure warning and self-park, among many others, it’ll reduce the chances of any dings or collisions which could be costly to repair.
Also, with employee well-being rightfully at the forefront of so many businesses’ minds, the business is demonstrating its care and value for its employees by offering a new vehicle over a used vehicle.
5. Project the right image
Image is important for any business. And part of being successful is projecting the right one.
For any professional outfit, the vehicle that represents the business is important. It often makes the first impression.
And having an up-to-date model shows that your business is meticulous and takes pride in its looks.
However, it’s not just benefitting for clients. If the business is growing, a high-quality company car offering may also draw in new employees.
If the business were to buy brand-new models, it’s going to cost a significant outlay. However, with a business lease, those costs are minimised while still providing the same benefit.
6. Save money elsewhere
It’s not just the cost of the vehicle where a business can save with a lease. It’s everything else that comes with having a car, too.
With a business lease, the vehicle leased is likely to be new or nearly new. That means it’s less likely to suffer from faults and be more fuel-efficient.
All that means is there’s less cost to the business. So, even though your monthly payments may be higher on a newer car, it’ll cost you less to run.
Can I get a business lease?
A business lease is available to limited companies, sole traders, partnerships or LLPs.
You usually have to have been formed for a set time before you can get accepted for a business lease – typically two years – and when you apply, you’ll need to provide information about the business as well as the owner or CEO.
It’s easy to find out whether you’ll be accepted for a business lease. Check your eligibility below, submit your details, and in minutes you’ll find out whether you’ve been accepted.