Car leasing is fast becoming a more popular option as compared to purchasing a brand new car outright. One of the primary reasons is that car leasing companies typically purchase direct from the vehicle manufacturers, thus passing on the benefits to their clients.
Take a look at some of the benefits of car leasing as opposed to outright purchase of a brand new vehicle:
No Major Upfront Costs with Car Leasing
Among the major benefits of leasing a car in the UK is that there is no major expenditure while acquiring a new car; typically all that is required is a small initial advance that is typically about 3 times the monthly lease amount. These smaller upfront costs mean businesses can maintain their profit margins while still experiencing the benefits of a new vehicle for the duration of the lease.
Fixed Interest Car Leasing Plans
Almost all car leases are available on a fixed payment basis. This means that irrespective of any movement in bank base rates, the monthly lease payments always remain constant and unchanged. Among other things, this allows people who lease cars to maintain accurate budgeting for at least the duration of the car leasing contract.
Car Leasing Offers an Alternative Funding Source
Customers who take advantage of leasing to acquire new vehicles get to conserve their available capital and protect their primary funding sources including loans and overdraft facilities. This gives customers the unprecedented advantage of having extra available income without using up their external resources, which will still be available for them at a future date should the need arise.
UK Car Leasing is Tax Deductible
All payments that a business makes under a UK car leasing agreement are regarded as operating expenditure. Hence, these payments can lower the taxable profit on the business by as much as one hundred percent of the total payable rental.
Reduced Time Spent On Administration & Maintenance
With a ‘Contract Hire’ or a fully maintained operating lease, customers have the option to have the contract fully maintained. This means that all routine services including overnight service, manufacture recalls, service reminders as well as tyre replacements and all other items that may need to be replaced during the lifetime of the contract remains the responsibility of the leasing company. This can dramatically reduce the time spent, and expenditure, on the upkeep of the vehicles.
Car Leasing Offers you the Best of the Best
Sure you would like to drive around in the swankiest model available but you don’t think that you would ever be able to save enough to actually own any of the latest models of cars. Purchasing a cheaper car is an option, however car leasing offers you the ability to drive around in any of the latest models of your choosing without having to over-extend yourself financially or worry about being head over heels in debt. Charges are incurred only in case the pre-agreed mileage allowance is exceeded or if there is excessive wear and tear on the vehicle.
In addition to all of the above advantages of UK car leasing is the unexpected benefit of not having to worry about car disposal should the need arise. All the risk is taken by the leasing company.