Business Car Lease Deals with All Car Leasing
It doesn't matter whether you're a sole trader, limited company, partnership, a public limited company (PLC) or self-employed, business car leasing is an option that's open to you. Contrary to popular belief, it doesn't even matter if the vehicle's intended for personal use, it can still be leased through the business. Business car leasing is easy, you find a deal you love, get in touch and we'll pretty much sort the rest from there. It really is that simple. We're here to bring you the very best business car lease deals so you don't have to spend too long hunting for the perfect vehicle.
What is Business Car Leasing?
Business car leasing is a form of car finance that allows you to get your hands on a brand new car, regularly, without the hassle of having to sell your old one first. Generally reserved for business owners, sole traders, and limited companies, business contract hire allows you to lease a car for 24,36 or 48 months. You’ll just have to pay in fixed monthly installments.
Once this contract is up, you can just hand back the keys and start another contract hire agreement. This means you haven’t got to worry about selling it and risking losing huge sums once the car’s value has depreciated, but you do have the option of paying a balloon payment if you want to keep your car at the end of the term.
One of the great things about business contract hire is that you can often find great business-only deals and often pay less in taxes.
How does Business Car Leasing work?
Business car leasing is very similar to Personal car leasing. It involves an agreement between the leasing company (us), and the business (you), to find the perfect business car for you. After paying an initial payment, you pay smaller monthly payments for an agreed amount of time, this is usually 24, 36, or 48 months. You do not own the vehicle throughout.
When this contract comes to an end, you have the option to hand the car back, without worrying about reselling or deprecation. Then, if you want, you can take another new business car out and restart the lease.
Unlike personal car leasing, you are able to lease a number of cars, or a fleet, for your employees. Also, business car leasing excludes VAT from the monthly payment, meaning you can often find great business-only deals and often pay less in taxes.
There are multiple finance options to take if you are looking to lease a fleet of cars, these are:
- Contract Hire
- Finance Lease
- Outright Purchase
Learn more about these options here.
If you choose to keep your car at the end of the term, you do have the option of paying a balloon payment.
What are the benefits of business leasing?
If you are considering a car, or fleet of cars, for your business, then business car leasing is the perfect option for you. There are multiple benefits to leasing over buying. Below are a few of the best advantages.
Cheaper than PCH
Business car leasing is often cheaper than Personal car leasing because you can claim 50% VAT back, and 100% of the VAT of the maintenance agreement if you are leasing a car through a VAT registered company.
Fixed Monthly Payments
The beauty of a car lease is that your monthly costs won’t change for the whole duration of your agreement. After you’ve paid your initial upfront fee, sometimes referred to as a deposit, your fees will be the same all the way through.
Deals to suit all budgets
There are car lease deals available for any budget. As you can change the amount you pay upfront and the length of your lease, you can change how affordable a deal is for you. It may mean that a more expensive car isn’t as far out of your price range as you initially feel. Prices will change depending on the car and the length of your lease. Some deals are available with no deposit too.
There are a number of things we often get asked here at All Car Leasing® about our business lease deals. To make sure you know everything about business car leasing, we’ve compiled the below FAQs, but if you can’t find the answer you need below, just get in touch, or check out our business car leasing guides or fleet leasing guides.
Frequently Asked Questions
If you own a Limited company and are looking to lease a car, or fleet of cars, for yourself or employees, then leasing through business car leasing would be highly recommended over personal car leasing. This is because it often ends up being cheaper if you are leasing through a VAT registered company. Better still, you can use the leased business car for personal reasons, too! So, we’d highly recommend checking out our business car leasing deals.
Companies that are VAT registered can claim up to 50% of the tax on the fixed monthly payments. Also, 100% of the tax on maintenance packages can also be deducted. Plus, if your car is a low emission car, such as hybrid and electric cars, the cost of leasing can be deducted from taxable profits. Learn more about company car tax on electric cars, and BiK tax, by reading our guide on the subject here.
If you are considered a sole trader, then absolutely! It doesn’t matter whether you own a giant conglomerate, or you’re a one-man-band. Business car leasing is for any business, no matter what the shape or size.
Leasing a business car if you are self-employed is similar to the personal car leasing process, such as going through a free credit check. A bonus to business car leasing is that you can use your leased business car for personal reasons, too.
To lease a car through business contract hire, you must:
- Provide details of your business, such as the name, address and registration number.
- Provide bank details, including 3 months recent bank statements.
- Qualify as:
- A public limited company (PLC)
- A Limited Liability Partnership (LLP)
- In a partnership
- A local authority
- A limited company
- A self-employed sole trader
- A charity
- A VAT registered business
- An embassy
- Provide a copy of the Directors driving licence or company accountant's details (for higher-value vehicles).
Learn more about the required documents here.
Not sure if your business is eligible for business car leasing? Feel free to give us a call at 01565 880 880.