Businesses in many different industries will need to have at least one vehicle in order for their operation to run smoothly and efficiently and this is true of small sole traders through to huge corporations. There are a few different ways that this can be financed, but most will find that leasing is the best option to take.
When you lease a car for your company, it makes financial sense because you can spread the cost of the vehicle over an agreed term as opposed to paying upfront – this makes managing money much easier. The other key benefits of leasing for a company are that you avoid depreciation as you never own the vehicle and also it provides your business with the chance to drive brand new cars every few years.
This is great because it means that you can impress by driving new models whilst also benefiting from better technology, performance, efficiency, safety etc. The only drawbacks are that there may be certain limitations and you will not be able to modify the vehicle in any way.
It makes a lot of financial sense to lease a car for your business and especially if you need to own a lot of cars, such as an estate agency. Additionally, many specialists like Car4Leasing will have a wide range of vehicles to choose from so that you can find one that is perfect for your company needs. Often, these deals are highly flexible so that you can make it work for your company.
When it comes to leasing, you could either lease personally or through your limited company. If you lease personally, VED is usually included and you do not have to pay company car tax, but you will need to pay VAT in full and you will need to keep a record of all business mileage. If you opt to lease through your limited company, you may benefit from better deals and company car tax will be cheaper. The higher the CO2 emissions, the higher the company car tax so it is always wise to opt for an economical vehicle.
As you can see, leasing can bring many great benefits whether you decide to lease personally or through your limited company. Whether you are an entrepreneur or the owner of a large corporation, leasing is the smart financial decision to make and allows your employees to drive the latest and best vehicles without having to worry about depreciation.