How to get a business car lease – and is it right for you?
If you’re an SME, a sole trader, or a company looking to avoid upfront costs and access the latest vehicles, our zero-deposit business car leasing – or business contract hire – is the answer. Here’s our all-you-need-to-know guide about business car leasing and the best deals on zero deposit business car leasing deals:
What is a business car lease?
For any businesses struggling to afford high deposits on cars for work purposes, business car leasing comes with several benefits that provide financial relief. The hassle-free contracts are a great way for companies to access single vehicles or a fleet of cars without committing to the legal ownership of them.
Leasing a car for business with Zero Deposit Car Leasing is simple – even with bad credit and/or zero deposit. Simply choose your desired car, or van, set your annual mileage, and pick a fixed monthly payment over an agreed period. Your contract is based on the car’s expected value at the end of the agreement, which often results in low monthly rates. This allows business owners and their employees to drive executive cars at affordable prices, ensuring that you are getting the best deal for your money.
Do I qualify for a Business Car Lease?
To qualify for a business car lease, you need to be:
- A public limited company (PLC)
- A Limited Liability Partnership (LLP)
- In a partnership
- A local authority
- A limited company
- A VAT registered company
- A self-employed sole trader
- A charity
In some cases, other less common company types may be considered. One of our customer service agents at Zero Deposit Car Leasing can advise you on whether your business would qualify.
What is the cost of a business car lease?
Business car leasing is highly beneficial with tax advantages. You can claim up to 50-100% VAT back on your monthly payments. And claim up to 100% of the tax on any maintenance package. Subject to your vehicle’s CO2 emissions (under 130g/km required), the cost of your business car lease can be deducted from taxable profits. Search thousands of brand-new and used models starting from less than £200 and all with zero deposit!
What type of contracts are available for businesses?
Whether you opt for a single vehicle or a fleet of cars, we can tailor-make the terms of your contract to suit any budget or business requirement. From the annual mileage to the contract period (usually between two and five years) – you decide the most suitable terms for you. When your contract ends, you can renew your lease, or amend your contract to meet your company’s needs at that time.
What are the pros and cons of business leasing?
Business car leasing offers several incentives. Your company will have the freedom and advantage of driving the latest executive vehicles at the lowest prices. With fixed monthly fees and no hidden extras, you have complete control of your company’s automotive outgoings.
- Money-saving: Decreased maintenance costs as you and your employees are covered for routine servicing, breakdowns, and accident management. Ensure that you opt for a comprehensive maintenance package in your fixed monthly payments.
- Premium vehicles: You have access to a wide range of premium vehicles which are often advertised for high monthly payments. Your employees can carry your brand image in the most advanced, and safest vehicles whilst enjoying Benefit-in-Kind (or BIK) savings.
- No depreciation costs: Your monthly payments are calculated based on the depreciation of the vehicle meaning you aren’t stuck with the losses at the end of your term.
- Tax Relief: If the car is used only for business purposes, you can get from 50% to 100% corporation tax relief and recover full VAT costs.
- No early exit: The most significant downside to business car leasing is that you are tied into the full term of your contract. If you decide to opt out of the contract earlier, you will have to pay a lump sum for the remainder of the contract period.
Buying vs leasing a business vehicle
Leasing a car can be a good option for businesses with limited capital who can’t commit to buying just yet. It’s also cheaper than other types of car finance. For example, the Audi A6 Saloon offers a saving of up to £60 per month, in comparison to a personal lease deal. Whilst the BMW 5 Series Touring will give you a saving of up to £115 per month as a business car lease.
Can I lease more than one business vehicle?
There is no limit on how many vehicles you can lease if you meet the requirements of your agreement. Zero Deposit Car Leasing offers deals and discounts on fleet leasing too. You can browse all of our business car lease offers here.
Can I get out of a business car lease?
Traditionally, a business car lease will tie you in for the entirety of the contract. There’s no option to exit early or swap the vehicle without paying a substantial fee. However, you could transfer the ownership of a lease vehicle to another business. This is provided that it has been trading for at least three months and has three months of accounts.
What are the best business cars to lease?
Company directors can opt for a model that is well-built and stylish, such as the Mercedes-Benz E Class Coupe. Employees may prefer a city car such as the Fiat 500 for comfort and ease during commutes. Whilst service companies focused on deliveries may want to look at leasing vans like the Volkswagen Caddy.
If you’re an environmentally-conscious business and want to take further advantage of zero-emission benefits, our range of electric cars is for you. You can claim back on the full amount of your lease against taxable profits when leasing an electric car. Plus, there is only a one percent tax on Benefit in Kind for electric company cars now. This means further benefits for your employees.
You can find the best of our hand-picked business lease deals here.
How to qualify for a business car lease?
The process of getting a business car lease will require you to provide the relevant documents mentioned below. You will also have to go through a credit check. Depending on the results of this, you may also need to provide the company director’s finance history.
Check your credit rating through Apply Now (this will not affect your credit score).
What documents do I need for a business car lease?
You will need to provide your Company Details including company registration number (if applicable), and annual turnover. The applicant’s (director, partner etc) details, and the business’s bank details. This could include business bank statements, and other filed accounts.
The Director could be asked to act as a guarantor. If the company is no longer able to pay monthly rentals, the Director will need to make the repayments.
Business car leasing with Zero Deposit Finance
We have thousands of business car lease deals on Zero Deposit Car Leasing. You can find your ideal company cars in a matter of minutes using our search tools. Follow the simple steps on screen and submit your details. One of our expert account managers will be in touch. Continue doing what you love and leave it up to us to find you a great business car lease deal!