Increasingly a popular business decision here in the UK, leasing of a Company Car and/or Company Commercial Vehicle is a viable alternative to purchasing as companies look to get the very best value when it comes to economy as well as brand image.
Use of vehicles to deliver goods, or to get employees from one place to another (such as sales representatives to client meetings) means that companies will require any number of cars or vans, with small businesses operating fleets of between 1 and 25 while larger organisations such as police departments, councils or government offices may require hundreds, or even thousands.
This is known as Fleet Leasing.
Fleet leasing is most certainly a very viable option to purchasing company vehicles outright, especially when companies do not have the finances.
It's convenient, it's cost-effective and thanks to luxury car leasing, it can make your company look good with constantly up-to-date new vehicles. It's also a great employee perk that can help you attract the best talent, offer a slightly reduced salary, and ensure safe, overnight parking; and it's a way of financing your business fleet that is easy with little or no hassle.
With all the problems inherent in car ownership and car disposal taken away from you, and the added bonus of a continual update of models once the car leasing period is up, excusive business lease deals in stock for quick delivery, tailored programs and management services offer the complete service.
Starting with the initial consultation where you are guided through what to expect, your journey through the whole process including funding, supply, management and, finally, disposal is made as easy as possible with minimum interruption to your daily routine.
Different vehicle finance options
Obviously, as you are entering into a big financial commitment when it comes to business vehicles, car leasing hire helps you spread the cost rather than splash out a lump sum, and with this in mind there are different financial methods when it comes to splashing the cash.
Each method allows you to consider alternatives depending on whether or not you want to keep the vehicle at the end of the car lease deal; or maybe you wish to pay low rental costs with a final large payment at the end. Fleet funding is tailored to the type of business and the requirements of that business. (For example: the financial method chosen can allow you to release any capital or can help you reduce your tax liability.)
Finance options include: Contract Hire, Finance Lease or Outright Purchase.
Contract Hire does what it says on the tin: instead of 'buying' the vehicle over the term of the lease, you actually pay to use someone else's vehicle (in this case, the leasing company's).
Ideal for a minimum of fuss solution for the smaller fleet, you enter into a tailor-made agreement that includes fixed monthly payments, and is based upon the size of your initial deposit and the estimated mileage (amongst other things).