It can be tough in business, especially if you need to get your employees out on the road. Should you purchase vehicles for them and really make an investment or should you enter into a lease agreement? We really think leasing is the way to go. It gives you so much more freedom and opens up so many more options whilst also working out cheaper in the long run. Read on to find out exactly what the benefits of leasing are for your business and your staff.
1. Brand image without breaking the bank
Even if you went out and purchased your team shiny new cars, they will eventually age and you will have to either purchase new ones again or send them out in older, run-down vehicles. We’re sure this isn’t the image that you wish to portray to your customers. When meeting clients it is important to create a positive impression and nothing does this better than turning up in a shiny new vehicle. Luckily, car leasing means that your vehicle will never be more than 3 years old.
2. Simple versatile affordability
Leasing can actually work out cheaper than purchasing a new car upfront. You won’t have the big initial outlay because there won’t be a deposit to pay and leasing costs are generally far cheaper than car finance. It means that you can afford the vehicles that you want your employees to have with little worry. Take a look at intelligentcarleasing.com to get some ideas of the types of vehicles you could drive away with.
3. You Can Reclaim 50% of VAT
As a legitimate business expense, you can reclaim much of the VAT that you will pay on a leased vehicle. VAT usually works out cheaper when you lease rather than buy too because you don’t have to pay the tax due on the whole vehicle. You just have to pay it based on the proportion that you will use throughout the lease. Plus, it’s included in your monthly payments so you can spread the cost. While we’re discussing tax, why not have a read through our post about making taxes simpler, you never know what interesting information you might pick up.
4. No Maintenance Fees
When you lease you get yourself a brand new vehicle that will never age more than 3 years by the time you trade it in. This means that you shouldn’t have to worry about maintenance costs because your vehicle won’t have the chance to show signs of wear and tear. New cars don’t even have to be put through an MOT until they are over 3 years old because the likelihood of something going wrong is extremely low.
5. Improves your Cash Flow
When you lease, you simply need to pay an agreed fee each and every month throughout the lease agreement. This is something that can easily be anticipated and budgeted for and so can help you understand where you are cash flow wise. when purchasing vehicles, you will have large deposits to make and will also likely have to pay off a loan each month. It’s that deposit, however, that can make your cash flow unpredictable, especially if you choose to replace cars once they start to age.