There are many different ways in which car leasing can benefit your business, but often these are forgotten among the latest models, deals and everything else which goes on within the industry. So here we take another look at 5 of the main factors your company should consider before choosing a car leasing deal.
5 Considerations When Choosing A Car Leasing Deal
Are You VAT Registered?
Business car leasing is subject to VAT costs; however on your monthly invoices you will be able to claim 50% of it back if you are VAT registered. You can’t claim 100% because there has usually been some private use of the car, but if your lease vehicle is used only for business purposes – for example if it’s a pool car with no private usage – then you can potentially claim 100% of the VAT back.
Would You Like A Tax Efficient Way Of Funding?
Car leasing provides one of the most efficient ways to manage your fleet. 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 company’s taxable profits. This can save your company even more money, whilst having the latest cars in the business.
Is Cash Flow Important To Your Business?
Paying for your cars outright or through finance requires much more capital than choosing a business lease option, as you are paying for the overall value of the vehicle. With leasing you are only paying for the depreciation which means you can invest the money in the business and improve your cash flow.
How Much Do You Value Your Time?
In the business world time is money and that means the more you spend fixing and dealing with your fleet the less time and money you have to spend in other areas of the company. Contract hire will give the responsibility of finding and moving the car to the leasing company which saves you time and money. Another way to save is through maintenance contracts, which are often excellent value for money and can save you thousands of pounds if unexpected problems arise.
Access To Large Fleet Discounts On Company Cars
Finally choosing car leasing can help you reap the benefits if you find the right deal from a good leasing company. Jeff Reed, a contract hire expert says “post-recession, companies are realising that fixing the cost of their motoring is essential and cash-flow high up on many agendas.”
“The day-to-day running of company-owned vehicles is not only time-consuming; it can be costly and tie up money unnecessarily. Contract hire is also a VAT and tax efficient way of funding a new company vehicle and in a lot of cases it is cheaper to lease than to buy when depreciation is taken into account.”
Professional Car Leasing Services From Select Contracts
At Select Contracts we provide complete car leasing services for every make or model including all of the latest releases. 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 email@example.com or call 0845 6770 770.