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Advantages of Company Car Leasing Over Buying

If you’re a small business owner, or at least are thinking of starting your own benefits, one massive benefit you could have overlooked is car leasing. Business rates on leasing cars are naturally much lower because VAT is claimed back, effectively giving you a massive discount on the market price.

When you drive down the road and you see plenty of nice swanky Mercedes, Audis or BMW’s coming towards you, chances are they are either company cars or leased cars. Not many people have the kind of money to throw away on buying a brand new executive car for it to lose value by the day.

Leasing works by the leasing company buying a fleet of cars in bulk, for example you might expect to pay £40,000 for a new Range Rover Evoque. But if a leasing company has brought 25 of them all at once, they may have been able to negotiate a discount at something like £32,000 per car. Therefore they can afford to lease the car out and still make some money when it comes to sell the car on second hand.

Leasing a car on behalf of a business also has an added advantage of image. If you are needing to meet clients or take them out, or even give an impression when it’s parked outside an office, A nice car can deliver. It gives off the image of professionalism and the fact that you can afford that car, you must be good at your job.

What are the main advantages over buying a car? Well there are several, With the economy the way it is, it’s making more sense to consider leasing. Buying a car is obviously expensive, most of us can’t afford one flat out, we use finance companies instead. With finance companies comes interest which is usually a costly amount on top of the original car price. If you worked out the average cost of a lease to buying a car, you’ll find that leasing can often be cheaper.

Another good reason to consider leasing a company car is the comfort and technology you get with newer cars versus old cars. Obviously a company car is going to be used for commuting and travelling. So a newer car with more comfort, safety and newer technology would be a much nicer option than an older car.

Company
Car Leasing
can also evidently pay for itself, If you take into account car depreciation, maintenance costs and other general administrative costs. You could find that taking the leasing option could end up saving you money rather than buying a car flat out.

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