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What is Business Car Leasing?
Financial Options
Business Finance:
Contract Hire & Car Leasing
 The most popular choice for VAT registered and non VAT registered
companies that want minimum outlay and maximum control of costs,
especially when the maintenance and relief vehicle options are included.
With this VAT beneficial financing package, one regular rental payment
covers all risks, including costs of depreciation and disposal, for an
agreed period of time and mileage.
Roadside rescue, maintenance and
relief vehicle provision are options that can be added and changed to
the monthly rental.
The benefits of Contract Hire:
- Up to 100% tax deductable depending on cost of vehicle
- Low initial outlay
- Flexible contracts
- No residual risk
- No disposal issues
- Optional relief vehicle whilst yours is off the road
- Capital not tied up in a depreciating asset
- Off-balance sheet borrowing/accounting
- Fixed cost and optional maintenance
- VAT on rentals reclaimable
Finance Lease
Ideal for VAT registered companies who want to handle the
administration of their vehicles, and have the asset shown on their
balance sheet. A VAT beneficial option where the hirer can choose to
pay the entire cost over the agreed lease period, plus an interest
charge, or pay lower monthly rentals during the lease period with a
final payment based on the anticipated resale value of the vehicle.
The benefits of Finance Lease:
- Ownership at the end of the contract
- Fixed monthly costs
- Flexible contracts
- Low initial outlay
- Business capital not tied up in a depreciating asset
- VAT on rentals reclaimable
Contract Purchase
For companies with high-value cars who would like the option to
purchase the vehicles, but dont want any depreciation risks. The
customer acquires the vehicle by paying fixed monthly instalments with
the asset being shown on the company balance sheet, and can either
retain ownership at the end of the contract or hand the vehicle back.
The benefits of Contract Purchase:
- Low initial outlay
- Eventual ownership
- No residual risk
- Interest charges claimable against tax
- More capital to invest in your business
- Flexible contract
- Optional final payment
- Rentals allowable against tax
- Writing down allowance
- Fixed monthly costs
- No disposal problem
- Optional maintenance package
- Optional relief vehicle
Lease Purchase
For non-VAT registered companies and private individuals that want
eventual ownership of the vehicle. A funding agreement where the company
or individual acquires ownership when all payments, including the
purchase payment have been made. Part of the capital cost of the vehicle
payment may be deferred into a Balloon Payment at the end of the
agreement, which equates to the anticipated market value of the vehicle
at the end of the agreed leasing period.
The benefits of Lease Purchase:
- Fixed monthly cost
- Ownership at the end of the lease
- Flexible contract
- Balloon Payment
- Low initial outlay
- Business capital not tied up in a depreciating asset
- Finance not subject to VAT
- Interest reclaimable against tax
- Writing down allowance
Contract Hire Leasing (Best Option)
Contract Hire is the only off balance sheet car leasing option
offered today.
read more
Contract Purchase Leasing
Contract Purchase Leasing is a vehicle leasing option that is best
suited to the type of companies who cannot claim the VAT and are not VAT
registered.
read more
More Advice about Car Leases
 Car
Leasing Advice
Why
should I lease or hire a car?
Is
there a mileage limit?
What
level of wear is expected?
What
does maintenance mean?
Does
the cost include delivery?
Business
Car Leasing
Car
Leasing Companies
Car
Leasing Offers
Cars
Leases under £150
Do I
have any ownership of the car?
How
often can I get a new car?
Do I
need to make a down payment ?
What
cars make the best lease cars?
What
happens if my car breaks down?
Car
Leasing Deals
Company
Car Leasing
Short
Term Car Leasing
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