Benefits of leasing
If you have no wish to tie your money up in a car and you are looking for a straight forward way to drive a brand new vehicle then Car Leasing (also known as Contract Hire) may well be for you. At the end of your contract hand the car back. All the pleasure none of the pain.
Leasing a brand new car is a cost-effective, hassle-free way of financing a new vehicle, there are many benefits of leasing a car whether you choose Business Contract Hire or Personal Car Leasing.
The main benefits of car leasing are:-
- A brand new car every 2 or 3 years.
- Easy budgeting, fixed monthly costs.
- Maintenance, servicing and Roadside Rescue can be incorporated.
- Road Tax included.
- Mileage allowances to suit all needs.
- None of the costs associated with running an old vehicle.
- You can afford to drive a better car then if you bought outright
- No depreciation worries.
- No hassle of disposing of second hand vehicle.
- Free delivery to your home or work place.
- Option to purchase your car at the end of the contract, if you wish
Additional Car Leasing Benefits for businesses
In addition to the above, there are further Benefits of Car Leasing for businesses:-
- Up to 100% tax relief available on payments.
- 50% VAT back on cars if you are registered for VAT.
- 100% VAT back on commercial vehicles if you are registered for VAT.
- VAT can be reclaimed on the Maintenance.
- Vehicles will not appear on your balance sheet, improving your accounts
- Low initial outlay payment helps with cash flow.
- Include Fleet Management and Accident Management Services.
Disadvantages of Car Leasing
We should make you aware that despite all the Car Leasing Benefits I have listed above, there are also other considerations to take into account.
- You never actually own the vehicle.
- The finance company require the vehicle to be insured fully comprehensive.
- You will have to pay a charge for excess mileage if you underestimate your annual mileage.
- Early termination of the contract would be costly.
- You may face a bill for damage if the vehicle is not returned in good order, in accordance with the Fair Wear & Tear Policy of the finance company.
The benefits of leasing do outweigh the disadvantages should you need any further advice you should contact a good car leasing broker.