Car leasing has long been the preferred way for businesses of all sizes to provide cars for their employees.
For a business, leasing a car or van ensures a fixed monthly cost covering rental, servicing, break down cover and road fund license. When you consider the management overhead of handling these individual costs if you had a fleet of cars combined with the hassle of selling on used vehicles, you can quickly see why leasing is preferred.
The majority of larger leasing companies are perfectly setup to assist with managing small or large fleets, providing service booking, organising tyre replacements, courtesy cars etc.
Company Car Leasing
If you are looking for a company car then business leasing is perfectly suited to you. You can take contracts from 1-5 years so can always ensure you are driving the latest models and with a fully maintained package the only thing you need to worry about is paying for fuel – the rest is spread out over the term and paid by the company. Don’t forget that you will need to pay company car tax though. This should be taken into account when choosing your car as costs vary significantly depending upon vehicle price and CO2 emissions.
Choosing a Deal
You will most likely have been given a budget so the first thing is to understand how to make that budget go as far as possible. Leasing prices are calculated based upon the vehicle depreciation so the difference between the new price and estimated value at the end of your contract. By choosing a long contract term and reducing your annual mileage, you will spread this difference over a longer period and reduce the monthly payments. You can also reduce payments by providing a larger deposit and removing additional maintenance packages although your company may then ask you to be responsible for servicing and maintaining the vehicle.
It pays to shop around. There are many leasing companies in the UK and most will handle national enquiries so no need to approach only local brokers or companies. Often larger leasing companies will buy in stock in large volumes to benefit from additional manufacturer discounts. This results in stock they need to clear and therefore fantastic deals for you! At Askaprice.com we can help you find fantastic business leasing rates with some of the UKs largest providers so why not complete our quote form.
Personal or Business Leasing?
If you are a small business such as a sole trader using the car for both personal and business use then always compare business and personal leasing before you take the plunge and sign a contract. You may find when you include company car tax and the fact you can only reclaim 50% of the VAT payments then personal leasing actually works out cheaper. Always do your sums!