Why Should You Lease A Car For Your Business?

When it comes to leasing a vehicle for your business you have to eliminate the emotional factor that is coupled with leasing a car for your own personal use. Leasing a car for your business is not about whether or not you like the car it’s all about getting the best deal possible. A lot of the time, leasing a car for your company will always be a cheaper way of affording a car – as long as you think about the money that you’re spending and don’t lease a supercar. There’s a huge tax advantage for businesses that lease cars as the expenses that are associated with them should have the tax deducted. This consequently means that if you take out a business lease you will pay much less for your car than if you took out a lease for the same car personally. The tax deductible amounts don’t only include the lease itself but also any other upfront costs including insurance and repairs. Leasing cars means that your company can have a smaller cash outlay than if you bought the car outright; for example, if you pay £150 per month for a lease car then this is a relatively small amount compared to your company’s income, however, if you have to pay out £10,000 for a new version of the same car then this is a lot more money for a company to ‘lose’ in a small period of time. Leasing will also save you a lot of money when it comes to depreciation; you will have the car from brand new so you’ll have it for its best days and you don’t have to worry about selling it. Being able to give the car back and swap it for a new one also means that you don’t lose out on money because of the depreciation if the car. A lot of the time when you take out a business lease you can haggle the lease term; most leases are three years, whether they’re private or business, but a lot of companies favour business leases and will allow you to take the car for a shorter term, i.e. one or two years, if you ask. For some companies there are certain requirements that you will have to fulfil in order to be able to take out a business lease – like being in business for a certain number of years. However, most businesses will be able to fulfil these requirements and as you can see a business lease is definitely a sensible investment and it means that you will probably be driving around in a car that is much better than the one that you would otherwise have been able to afford. John Hunter – business owner – explains the benefits of taking out a Business Car Lease. He would always lease a company car rather than buy one due to the extensive benefits.