Business Car Leasing: Summary

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What is business car leasing?
Getting a business lease car is an affordable way to give your company that ‘professional’ look with an upmarket and luxury car. Car leasing is essentially the long term hire of a car, in which you can either return, swap or buy the car at the end of the leasing term, depending on which path you choose to follow.

 

What options are there?
1. Business Contract Hire: With this option, you pay a fixed monthly payment for the set amount of months of your choice and then hand the car back at the end of the leasing term. This is ideal if you don’t want to be the official owner of the vehicle.

2. Business Contract Purchase (BCP): You can either opt for a zero deposit lease or pay a deposit in order to keep the monthly payments lower each month. The future value of the car minus the sum of the monthly payments, is the balloon payment which you can choose to pay at the end of the term if you want to own the car. You can either return, buy or swap the car.

3. Hire Purchase: Some companies prefer the option of either owning the car or not. A hire purchase offers the choice of paying the final payment in order to own the car or you can choose to just hand the vehicle back.

4. Lease Purchase: This path is similar to a Business Contract Hire but the balloon payment isn’t optional. You can either choose to pay the final payment with cash, financing the outstanding amount or part exchanging the vehicle in order to pay off the remaining balloon value.

 

What are the benefits?


Depreciation

When you buy a car, the value will inevitably decrease when you eventually choose to upgrade. If you decide to lease the car instead, this will not be a worry as you won’t be selling the car at the end of the leasing term.
Maintenance
With expensive, luxury cars, the maintenance upkeep tends to cost a high price. With business car leasing, you can choose to add maintenance to your package in which all costs are covered.
Latest Technology
If you opt for business car leasing, it’s likely that you’re looking for all of the latest technology, including the infotainment and safety systems. The higher spec the car, the more it costs, but with leasing it’s all made affordable as you’re able to choose a newer car for less per month.
Flexible Contract
Leasing allows you to choose the best path for you whether you have a deposit or not or bad credit or not. As well as this, you can choose the length of the leasing period and any added extras, so the deal is completely tailored to you.

If business leasing isn’t the right path for you, there are always other options including a range personal car leasing deals which is payable by the private individual, rather than through the business.

 

 


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