Leasing Vehicles

Business vehicle leasing has potential benefits for companies, particularly when it comes to saving money. It is very important for businesses to consider which car finance method will be the most beneficial, as there are various different ways to finance company cars. Ultimately, it depends on the business, as each will have very specific requirements and objectives. However, vehicle leasing for company cars is a popular funding method for many different businesses – large, and small.

Tax Efficiency

One advantage of business vehicle leasing is that you avoid the task of reselling the vehicle when you are done. It can be hard to resell vehicles, and it is likely that you won’t get what you originally paid. With leasing, you have a minimum down payment and a contract stating the number of miles and period of time that the vehicle is rented for. Business vehicle leasing is also a VAT efficient way of operating your company fleet, and you are given fixed costs for the contracted period – you don’t need to worry about losing money due to unpredictable residual values, as these payments are already accounted for by the lender.

Business vehicle leasing is ever-increasing in popularity, as companies seek to take advantage of operating company vehicles while avoiding many of the associated pitfalls. The absolve of responsibility for vehicle disposal is a big bonus – after the contracted lending period, the vehicle goes back to the lender and the company doesn’t need to worry about what to do with the vehicle. This can save tremendous amounts of time, and possibly money too, due to fluctuating market values.

Leasing Improves Cash Flow

Another reason why businesses enjoy the fixed monthly rates of business vehicle leasing is because it is cash-flow friendly. This offers security that there won’t be any sudden, unexpected drain on cash-flow and may even leave the business with more money to invest in other areas. This budgeting is straightforward and easy, although most business vehicle lease agreements due require an initial deposit. The deposit is usually equivalent to three monthly payments, but is much less of a commitment than owning a vehicle outright and witnessing the value fall over time.

These are just some of the possible gains from business vehicle leasing. It is arguably one of the most secure, cost-effective ways to run your company fleet. The pre-agreed monthly payment with the lender means that there won’t be any surprise fees, and this monthly cost will cover general servicing under some leasing agreements, too. It is easy to see why an increasing amount of businesses are choosing to take this route for the operation of the company fleet.

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