Company Vehicle Leasing
The advantages of car leasing may now be recognised by the wider public, but it was company vehicle leasing that began the explosion of interest in car leasing deals in the UK.
What are the incentives to company vehicle leasing?
There are many incentives for company vehicle leasing. By buying a fleet of vehicles outright, you are forced to make a large cash payout and take on ownerships of cars that may not hold their value over a prolonged period of time. With company vehicle leasing, you can spread the payments into more manageable monthly sums, knowing that you can return the car at the end of the contractual period and upgrade with a new company vehicle lease if necessary.
This is particularly useful for businesses that have a high turnover of staff or flexible workloads. By taking out a short-term company vehicle leasing agreement you guarantee that you have the vehicles when you need them and you’re not left with unwanted cars once this period ends.
Things to remember about company vehicle leasing
One of the most important elements of company vehicle leasing is the mileage limit for each car you lease. Bear in mind that residual values will be calculated based on the mileage limit you agree with the leasing company at the start of the contractual period and so it is important to accurately estimate this mileage.
If you drive over the limit you will have to pay an additional sum but similarly if you drive significantly under the limit you will have been paying too much on your monthly payments.
The key to company vehicle leasing is flexibility. If you’re starting a new business you avoid making a large down-payment, you know your monthly payments will be lower than with alternative purchasing options and due to lower expenses you can potentially afford cars that were previously out of reach.
By leasing a company vehicle that would not be affordable if you were to buy outright, it also helps offer a stronger image of your business.