UK businesses are adapting the way they use their cash and a cost effective way to manage a fleet of cars is to lease them. The best way to explain lease is a long term rental with an initial payment and then fixed monthly payments up until the end of the contract where you simply hand the keys back to the finance company. Business leasing makes it affordable to get a new vehicle every 2 - 3 years at affordable prices. To explain the main benefits for your business we will explain them in more detail.
Gone have the days of saving money by buying new vehicles for cash because there is a lot of uncertainty which is depreciating cars much quicker. A business lease requires minimal outlays of cash upfront and low affordable monthly payments so you essentially only pay for the depreciation of the car rather than its value. This can be good for businesses who could put the cash to better use in alternative business activities or growth.
Taking up a lease contract allows a business to renew their fleet on a regular basis which keeps your company looking professional. Other benefits to having newer cars for a business is that costs of maintenance are minimal. Cars are required to be MOT’d after 3 years so if the contract is between 2 and 3 years there is no need to worry about unexpected repair costs. There is an additional option of a maintenance plan which will build in the costs of servicing and Tyres in to the agreement for an affordable monthly payment.
If you are VAT registered you are able to claim 50% of the VAT back on a lease if it is also used for personal travel however if the car is a pool car where only business miles are added then 100% of the VAT can be claimed back. This makes leasing a good option for UK businesses who want to manage their cash better.
If the car you decide on has CO2 emissions of 110g/km or less then 100% of the leasing cost can be offset against your businesses taxable income. Business lease cars with emissions of 111g/km or more have a 15% restriction on them which means 85% can be claimed against your taxable income.
With out fleet management service we can take the stress away of running a large fleet of vehicles. This includes Vehicle maintenance, Licensing and compliance, Road traffic accidents (RTA), Driver and fuel management and de fleeting at the end of the contract which means repairing the vehicles to a satisfactory standard before hand back to the finance company preventing any damage charges. Our fleet management will reduce the your overall transportation and staffing costs whilst working in a fully compliant manner with a high level of duty of care.
If your looking for a competitive deal but want a professional competent service then look no further as Lets Talk Finance can assist all business needs and requirements when it comes to business car leasing and business van leasing. Our team of experts are here to answer any questions and guide you through the lease process so give us a call today on 01625 568 612 or email firstname.lastname@example.org
4th of April 2020