Why Lease Cars for Business Gives you Freedom

We have all been in that situation where we need to get a new car, but what do we do? Can we afford to buy a car? Is that a second-hand car or brand new? Can I afford for it to go wrong? It’s a big hit either personally or professionally with the business, but what about leasing for business? What are the benefits?

Fixed Monthly Payment

Cash flow and budgeting is so important in businesses, this is where leasing a car can help you with the books. Leasing a car for business gives you a FIXED monthly repayment, so there is no huge payment that you need to make, and it gives you the freedom and peace of mind to manage your cash flow because the payments are fixed.

Minimal Capital Outlay

Buying a car outright, new or second hand, means a big initial outlay. Realistically, who can afford that whilst juggling things with the business? Leasing a car generally means that you pay 3, 6 or maybe 9 months deposit for the car but that is nowhere near the huge balloon deposit that actually buying the vehicle normally requires.

No Depreciation

You buy a car and drive it off the forecourt... that’s £5k off the value right there, ok maybe not quite but when you buy a car, you pay a lot and the value sadly just seems to go one way…Down. Leasing a car or vehicle for your business doesn’t mean you get penalised for the value going down, you are leasing it and get to hand it back (hopefully to get a new one from us!)

VAT Recoverable

If the vehicle is for business use you get to claim back 50% of the VAT on the re-payments for a car and 100% for vans or commercials, meaning the price gets even better! The monthly repayments can also be offset against the business profits.

Full Warranty

If you get a new car, it’s got a full warranty and breakdown recovery, doesn’t need an MOT within the first 3 years, road tax is included for the full terms etc. which means it’s one less cost, headache and worry. It really is that simple! If you add servicing as well, then all you have to do is insure the vehicle and put fuel in it – what’s not to like?!

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