5 Benefits Of Business Car Leasing
1. Fixed Cost Motoring Avoid Depreciation
The country is just coming out of recession and gradually making it back to where it was before the crash in 2007. But with money still tight for many companies, taking out bank loans or overdrafts for company cars can be a risk and could lead to unexpected costs further down the line. Business car leasing removes the need to find the initial capital to fund company cars, as you only pay a fixed monthly figure.
This means that the cost is expected and can be budgeted for accordingly, then when the contract period is over, the car is collected and sold meaning you dont have to deal with selling the car afterwards or the depreciate costs which come with it.
2. Better cash flow
Paying for vehicles outright or through finance requires much more capital than a business lease, as you are paying for the value of the vehicle throughout. With leasing you are only paying for the depreciation which means you can invest the money in the business and get better cash flow.
3. Access To New Cars
The increase in competition has led to better deals on business car leasing than ever before, and with better contracts and brand new cars. This means that you can keep your fleet up to date with better vehicles which have all the latest safety features, better reliability and improved fuel economy. This will also give your brand a better image, and make your employees feel like they are valued by the company.
4. Save Money From VAT
Business car leasing is subject to VAT costs, But on your monthly invoices you will be able to claim 50% of it back if you are VAT registered. You cant claim 100% because there has usually been some private use of the car, but if your lease car is used only for business purposes for example if its a pool car with no private usage then you can claim 100% of the VAT back.
5. Corporation tax 100% Reclaimable For Sub-130g/km Cars
If you choose a car with CO2 emissions under 130g/km, you can save your company money in corporation tax as the full amount of the lease is 100% reclaimable against your companys taxable profits. Saving your company even more money, whilst having the latest cars in your fleet.
Professional Business Car Leasing From Select Contracts
At Select Contracts we specialise in providing personal and business car leasing for any make or model, including all of the very latest 2014 vehicles. Our contract hire service is the best way to have a new car every few years, allowing you to have latest engineering and technological innovations, plus never worrying about breakdown or depreciating costs.
All our vehicles come with free UK delivery from our national network of dealers and vehicle preparation centres. For more information on any of our cars or car leasing services, please get in contact with us by emailing info@selectcontracts.co.uk or call 0845 6770 770.
