Business car leasing has become a lot more popular in recent years. It works in a very similar way to personal contract leasing, except with a few key differences. When the contract is agreed, there will be an initial down payment the company must make, whilst agreeing a set annual mileage with Autograph Contracts. Depending on the contract, the deposit can be incredibly low and annual mileage anywhere between 10,000 and 40,000, depending on your requirements. If this is exceeded, you may be charged accordingly.
Business car leasing can also be over a short period of time; Typically two or three years. With business leasing, there's also the benefit of being able to reclaim VAT, which can't be said for those who opt for a personal contract. This ensures you'll spend less money on the lease throughout the duration of the contract.
What are the benefits of business car leasing?
There are plenty of excellent benefits to leasing a car on a business contract and below you'll find just some of those with Autograph Contracts:
- Avoid high depreciation rates
Whenever renting a property it's always advised to get onto the ladder as quickly as possible, to have your own asset and stop paying someone else's mortgage. However, with car leasing, this is a completely different kettle of fish. This is because cars lose a huge amount of value in depreciation. Therefore, when purchasing a new car you'll instantly lose thousands of pounds and never get the money back when it comes to selling (unless it's a classic car). Also, monthly leasing contracts are some 35-55% cheaper than car loans. You can make a smaller deposit and pay much less with an Autograph Contracts lease.
- Maintenance costs are included
Another significant benefit to choosing a business car leasing deal, is maintenance costs are included in the price. The manufacturer's warranty will apply as the vehicle is often brand new and there's even the opportunity of adding services and tyres to the deal. Road tax is another cost regularly included as part of the leasing arrangement.
- Ensure cheaper capital outlay
If you were to purchase a car for business use, this would likely set your company back quite a cost. With car leasing, on the other hand, benefit from a smaller deposit and save your business money; It's as simple as that. For businesses without large capital to pay up front or those still in the early stages, this is the perfect solution to help keep the books in shape.
- Enjoy latest automotive technology
As car leasing deals are usually agreed on a short-term basis, you will be able to take advantage of the latest technology every couple of years. Fuel economy is one factor playing a significant role for businesses and modern vehicles can save you hundreds of pounds each year at the petrol station. Then, of course, there are aspects to consider such as safety and inbuilt gadgets. Just some of the latest tech included as standard with modern cars includes parking sensors and assists, lane changing warnings and sat nav.
Updated: You can read more about Business Contract Hire here.
If you're interested in business car leasing and want to find out more, why not get in touch with Autograph Leasing on 01634 687070 and speak to one of our advisers today. Top view our current leasing deals, click here.
Keywords: Business, Business Contract Hire