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Business Car Leasing

Business leasing offers many benefits including tax advantages, the option to renew regularly, and include maintenance costs.

Benefits of business leasing

Fixed costs
Better Cash Flow
VAT Benefits
Easy Maintenance

What is business leasing?

Business leasing is a long-term rental agreement that offers the use of a car or van for a set period at a fixed monthly agreed cost. Leasing is essentially an alternative (and often cheaper) funding option to buying a new car through a bank loan or dealer finance.

Business leasing also offers positive tax implications and all our deals exclude VAT. In fact, if your business is VAT registered you could claim up to 50% of the VAT for the supply of your brand-new vehicle!

All our contracts are either business contract hire or finance lease agreements and are available in 24, 36 and 48 contract lengths.

You can read more on business leasing in our series of business leasing guides.

What is business contract hire?

Business contract hire is our most popular rental agreement for businesses and suited for sole traders, partnerships and limited companies.

You will pay the rent of the vehicle in monthly instalments and then return the vehicle at the end of the lease agreement, leaving the provider to worry about depreciation and the disposal of the car or van.

Read more on business contract hire.

What is a finance lease agreement?

When business contract hire isn’t a viable option, finance lease offers flexibility and tax advantages as well and is available to companies who require vehicles but don’t have the funds to pay for them up front.

It’s possible to opt to pay for lower monthly rentals and then a final payment based on the expected resale value of the vehicle (balloon payment).

Read more about our finance lease offering.

Will my business pass finance checks?

As part of leasing a vehicle with us, your business will need to undergo a credit check. Take our interactive questionnaire below to find out if your business is likely to be accepted or not.

What type of company are you?

How many years have you been trading for?

How many years have you been trading for?

Nationwide Vehicle Contracts Limited specialise in helping new businesses obtain finance. If your company is under 12 months old, you may be required to submit 3 months business bank statements, management accounts (if available) and a director's guarantee (ltd companies only) to support your finance application. In some cases, a larger initial rental may also be required.

Would you consider a personal finance application?

Yes

Has your company ever been declined for finance?

Has your company ever been declined for finance?

Would you be willing to provide a Directors Guarantee?

Good News!

You are likely to be eligible for business finance based on the details you provided.

What would you like to do next?

We're sorry, but you are not currently eligible for business finance

Lenders may require more detail on some of the answers you provided before you will be eligible for finance.

Please call us on 0345 811 9595 to discuss your finance options

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Got questions?

Frequently asked questions regarding our Business Leasing package.

What is the difference between business and personal leasing?

If you are applying for vehicle finance as a limited company, partnership, sole trader or LLP, you may be eligible for business leasing.

Occasionally, manufacturers offer special rates for business customers only. This can result in a difference in price between business and personal prices.

Business car leasing also offers positive tax implications. You can reclaim up to 50% of the rental (for cars) or up to 100% (on commercial vehicles) on a business contract hire agreement.

Business customers also get exclusive extras, such as outsourced fleet administration, that personal customers would not have use for.

In comparison, if you are applying for vehicle finance as a private individual, you may be eligible for personal leasing. Personal contract hire is similar to a business contract hire agreement with the exception of reclaiming the VAT. All personal contract hire prices include VAT.

In some cases, personal leasing may actually be the appropriate option for certain businesses. For example, if you are a self-employed person who has recently just started your own business, you may not have the three months’ business bank statements required by most funders for a business lease. In this case, personal leasing may be the better option. If you’re unsure, your sales consultant will be able to help.

Which option is best for self-employed customers?

Whether you are self-employed or not, the type of leasing contract that is most suitable for you will depend on your individual financial circumstances and what you are looking for from your new vehicle. If you’re unsure which option to go for, ask your sales advisor – they will be happy to help.

To be granted finance on a business lease basis, you will need to provide three months’ business bank statements.

If yours is a new business and you are unable to do this, you may be able to lease a vehicle on a personal basis instead.

To find out more about financial eligibility, take a look at our business finance eligibility or personal finance eligibility pages.

How much annual company vehicle tax will be due on my leased business car?

The annual car tax on your company car will depend on a number of factors:

  • The P11D value
  • Your income tax percentage rate
  • The benefit in kind (BIK) tax banding, which is determined by its CO2 emissions

To work out the annual car tax on your company vehicle, use our company car tax calculator.

Who is responsible for insuring the leased vehicle?

You are responsible for arranging your own insurance on the vehicle. This must be a fully comprehensive insurance policy.

For business lease agreements, the insurance certificate should be in the company name or a director's name. If an employee is required to drive the vehicle, a letter on company headed paper may be requested confirming that the employee is authorised to drive to vehicle and confirming his/her position in the company.

Please note that for business contract hire and personal contract hire agreements, the finance company is the registered owner and keeper of the vehicle.

For further details regarding insurance, please refer to your finance documentation.

Are there any restrictions to lease a vehicle?

As long as you have a full UK driving licence, are able to afford the monthly rentals and have a good to excellent credit score, you can apply to lease a vehicle from the age of 18. There is no upper age limit.

Please note, we are unable to assist businesses who wish to use the lease vehicle for "Hire & Reward" purposes. This includes Taxi, Chauffeur, Driving Schools and Rental companies. Some funders also have additional restrictions in place for customers who work in the Motor Trade. Please contact one of our Leasing Consultants for further information regarding this.

Still have questions?

Contact one of our friendly sales advisors to find out more and we’ll be in touch to help you.

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