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.
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 credit history most funders require 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.