Why Lease a Car? What are the Advantages?
1. No Major Upfront Costs
There is no need for a major outlay to acquire your new vehicle. A small initial deposit is usually all that is required. This deposit is usually equal to three to six times the monthly rental.
The majority of capital asset acquisitions are for one of two purposes: to gain the use of the item leased or to save money. Small upfront costs with a lease means the business can obtain the vehicle and then experience the benefits of use in order to gain additional profits to pay the future lease rentals.
2. Fixed Payments
All of our leases are on a fixed interest basis and remain constant irrespective of what happens to bank base rates, which enables you to maintain accurate budgeting.
3. Tax Deductable
All of the payments made under a lease agreement are treated as an operating cost and therefore can reduce the taxable profit on the business by as much as 100% of the total rental payable.
4. Alternative Funding Source
In using leasing to acquire a vehicle, customers protect their other lines of credit, such as loans or overdraft facilities and conserve any available capital, thereby matching the funding to the working life of the equipment.
5. Ability to have the best product available
The cheapest option is rarely the best option in the medium to long term. With business equipment it is often imperative that the very best machine with the latest technology is obtained by the client. This often applies with company vehicles. In using the leasing option and paying for it out of future savings or profits it is easier for the end user to rationalize the more expensive, better product, rather than the "quick fix" cheapest cost to the business.
6. Reduced Admin
On a fully maintained operating lease commonly known as Contract Hire, there is an option to have the contract fully maintained. Contained in this maintenance are all the routine services and any items that may need replacing during the lifetime of the contract. Over night service, service reminders, replacement tyres, manufacturer recalls are all the items that are contained within the agreement reducing the time you or your staff spend looking after the upkeep of the vehicles.
7. No Disposal Worries
In an age of uncertainty, vehicle disposal values are a worry we can all do without. Whether you are leasing personally or through the business this is a worry we can eliminate. All the residual risk is taken by the leasing company; there will be charges if there is damage over and above fair wear and tear or if the pre agreed mileage allowance is exceeded. These costs are all controlled and monitored to ensure the individual or business is protected from over charging.