Each year, firms in England spend vast sums of cash on new fleet vehicles, when a company purchases a new motor vehicle with finance, a considerable deposit is required which can significantly dent the cashflow of most small companies. An alternative method to acquire brand new company cars without paying a massive downpayment is to employ car leasing.
When you hire your businesses fleet cars via contract hire, you receive many advantages over purchasing. Firstly, you pay a flat and low monthly tariff which is based on the devaluation of the car in question. You consequently do not need to find a vast amount of funds to satisfy the loan companies deposit requirement.
Secondly, due to the reality of automobile leasing prices being calculated on the depreciation of the automobile during your lease interval, it really makes sense to rent a far more lavish car than you might generally consider buying. This is owing to the way that top end vehicles tend to depreciate at a much slower pace than lower cost budget cars.
Businesses can additionally look forward to reclaiming around fifty percent of the VAT that they pay out in their leasing fees. Should you be an employed individual leasing a car instead to getting a company vehicle you will also benefit from additional relief as the vehicle will not be taxable.
Many businesses have a very tough time getting rid of their used company vehicles when they would like to replace them, it could be that the sales representatives have had them for a number of years and put a fair few miles on them. As a consequence the company end up selling on their vehicles at a big loss and therefore putting extra money into the downpayments on replacement vehicles, with a car lease agreement, all that would be required is a phone call, and the leasing firm would collect and replace your fleet vehicles with the new models of your specification.
Anyone interested in discovering more about the many advantages of car leasing can find more information on our website. We hire to private people as well as trade.