7 Reasons to Lease your Business Vehicle rather than Owning

-

If you don’t have the capital to buy a new commercial vehicle for your business outright, then you may look into leasing. If you’re looking for a business vehicle, there are many reasons why leasing could work better for you than taking out a loan and buying a new car outright. Here are a few pointers for your consideration:

New vehicle vs. old vehicle

The most obvious advantage for leasing your business vehicle rather than owning it is that you’re more likely to be able to afford a brand new, reliable car! For most businesses, being able to spread out the investment is beneficial to cash flow rather than just putting down one big lump sum.

A new vehicle is also great for business reputability. People are less trusting of a sole trader who turns up in a rusty old van. So, if you are able to attend jobs in a high quality, brand new vehicle you’ll be making a good first impression.

Maintenance packages relieve worry

You’ll need to do some research into this but some lease companies offer maintenance packages as part of the monthly rental. So, if something does go wrong such as your windscreen cracking or the need for a new tire – you won’t have to pay for it. Ensure in detail and confirm what comes with your lease deal before you drive off the forecourt.

Low initial rental



Instead of a large initial rental, business lease cars can be obtained with a smaller amount of money up front. So if you require business urgently then you won’t have to find a large amount of funds for a new vehicle.

Tax deductions

If the vehicle you use is solely for business purposes, then you can claim back 50% of the VAT. You can do this via your HM Revenue and Customs online account and submit a VAT return, the money will usually be returned after 10 days.

Low risk

Chances are if you are a small business buying a commercial vehicle, it will be second hand but getting a leased van or car are usually brand new. This makes leasing less risky than choosing a vehicle you don’t know the history of accurately. You also enjoy the manufacturer warranties covering repairs, that usually come with leasing a brand new vehicle. There is also no concern around depreciation of the vehicle simply because you do not own it and you hand it back at the end of your agreed rental period.

Low monthly payments

As well as the tax deduction, the monthly rental costs towards your lease busine vehicle will be lower than those incurred if borrowing money from a bank. You’ll also discover that leasing doesn’t feel like ‘debt’ because you never actually own the vehicle and so again, this is a weight off your shoulders.

Avatar
Jessica Foreman
Jessica Foreman is a Durham University graduate specialising in business and lifestyle based writing. She has developed her skills on projects surrounding The British Broadcasting Company, and running a print and online based magazine whilst at university. She is currently looking towards starting her Masters in Mobile and Personal Communications as well as broadening her horizons through travelling.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

NOW TRENDING

Tinder Super Like – How to Super Like and Undo Super Like on Tinder

Looking for the guide about what actually Tinder Super like is? Do you want to know how you can hit Tinder Super Like to...

How to Use Tinder Without Facebook – 3 Ways to Sign in Tinder

Are you a married man or woman or teenager who wants to use Tinder without Facebook either to hide your Tinder activity from your...

5 Best Games Like Mystic Messenger for 2020

If you haven't played Mystic Messenger yet, you probably the kind of person who isn't aware of the latest happenings in the...

How to Delete All Messages in Discord

Although Discord is more heavily focused upon its voice call features, the messaging options are also quite frequently used. Now if you are an...

Hay Day Derby Tips – Play Guide And Derby Winning Strategy

Derby is the awesome feature being introduced by Super Cell in Hay Day. This made Hay Day players more professional in the game rather...

LATEST STORIES

5 Tips for Managing Your Online Loan

So you’ve managed to secure an online loan. You have paid off whatever bill was causing you grief, whether it was a...

6 Reasons Why Getting an MBA Online Could be the Best Decision an Engineer Could Ever Make

More and more engineers are considering getting an MBA online these days, and they have evolved a lot since their inception not...

4 Rules a Designer Need to Follow When Designing Business Cards

You can find all kinds of advice for designing a basic or fantastic business card. However, choosing a great logo doesn’t matter...

Why Salon Booking Software Is Crucial To Managing Salon?

Managing a spa is quite complicated, and managing things in a quite assembled way is not a cup of tea. But you...

4 Reasons Why There is an Importance of Training in the Workplace

Job hunters of today are looking for more than just work. Instead, they are looking for a culture that they can be...