A business that offers a company car can be very attractive to new employees as they can enjoy this as part of their benefits package. Company cars can also be a great way of promoting the business and making the employees and the overall image seem more professional. When you decide that you are going to offer a company car or get one for yourself, there are a few decisions that you will need to make.
Firstly, you’ll need to decide whether you can afford to buy the car right away or if you would rather take out a lease. The process of taking out car leases is becoming more and more popular with both individuals and companies as time goes on. There are many benefits of leasing a company car so keep reading if you’d like to know more about them.
When you lease a car, you can afford to have one that is top of the range. It is likely that some businesses wouldn’t be able to buy a new car like a BMW for their employees but could afford to Lease a BMW. The idea of getting a fancy car like a BMW can sound very expensive but the truth is that BMW car leasing companies make BMW leasing affordable. You don’t have to get a BMW you can choose from other great cars like Range Rovers or Jaguars. Having your employees drive around in these cars will do a lot for both their moral and your business.
The Overall Cost
The great thing about leasing a car for business purposes is that you don’t need to worry about the upfront cost. Yes, you will have to pay a small fee when you start the contract, but it is nowhere near the cost of buying a new car. Running a business and ensuring that you are able to stay financially stable relies on budgeting yourself and making sure that you are able to pay each month. Car leasing contracts mean that you know how much you will need to pay each month, and this can be a great way of budgeting.
Getting Back VAT
There are also great tax-related benefits to leasing a car. Depending on what you use your car for and the general set up of the emissions, you may be able to get 50% of the VAT back on your purchase. We highly recommend that you look into this if you are planning on leasing a car for business purposes because you will want to get the best deal possible. You may even be able to get a higher percentage of the tax back on these vehicles if they are solely used for business purposes!
If you are planning on adding some vehicles to your business, we definitely recommend leasing them over buying them. There are so many benefits, and this is why more companies are opting for this!