Choosing between purchasing a vehicle for your business or leasing one can be incredibly difficult. Often businesses just don’t have the capital to justify making that big purchase but those in control of a business can also feel concerned about committing to a regular monthly payment. Leasing a vehicle is often the best option for a business, however, because of the freedom that it can provide and for many other reasons.Have a read through our guide to see why vehicle leasing makes sense for your business.
When you purchase a vehicle, you have to pay sales tax on the full value. This isn’t the case when you lease a car, however. You only have to pay tax on the proportion of the vehicle that you will use during the leasing period. Plus, the business won’t have to fork out for the tax all in one go. You can spread the tax payments out over the leasing period, it will be included in the monthly figure that you pay out. You can find out more about the tax advantages online.
Low Monthly Payments
Leasing a car is always cheaper than buying a new one. Even if you purchase a car using finance and spread the cost, it will always work out more expensive than leasing. When you are in business costs always matter because you have to balance them against all of the money that you bring in. Leasing could help you make your enterprise more profitable. Take a look at our post looking at why buying a new vehicle isn’t always the best option for more inspiration.
No Maintenance Fees
When you lease a vehicle you normally get to enjoy a lease period of 3 years. This means that you will have a brand new car which will only be 3 years old at the time when you can trade it in for a newer model. Given its age, this vehicle shouldn’t have time for things to go wrong, it won’t be old enough for maintenance to really be a concern. You don’t even have to MOT a new car for the first 3 years because something going wrong is considered to be highly unlikely. If you purchase a vehicle, however, it is inevitable down the line that you will be stuck with huge bills at the garage in an effort to maintain it. Take a look at car lease brokers ICL to get some ideas of what type of vehicle you could be driving away.
GAP coverage is something that usually comes as standard with any car leasing agreement, although you should always check before signing. GAP coverage can be a real lifesaver should something go wrong with your leased vehicle because it will help you pay off the full amount that you owe, even if your insurance company refuse to do so. You will have full protection should your vehicle be stolen or written off and so can free yourself from worry about paying off your vehicle should the worst happen.