The debate on whether to buy or lease vehicles for a business is raging, but one thing is quite clear – vehicle leasing is coming out on top. There are various reasons for the surge in popularity of vehicle leasing, especially for businesses, but the more knowledgeable business owners understand that vehicle leasing is a better deal. If you have decided that vehicle leasing is the most feasible option for your business, it still pays to know as much as you can about it. Here, then, is your complete guide to leasing vehicles for your business – everything you should know.
What is vehicle leasing?
Business vehicle leasing allows you to lease or rent a vehicle, such as a van, a car or a fleet of vehicles, for a certain period. You will then have to make fixed monthly payments on those vehicles until your contract ends. It’s a simple and straightforward transaction in many ways, hence its increased popularity. Once your contract has ended, all you have to do is give the vehicles back to the leasing firm.
Vehicle leasing is an optimal solution for businesses that need transport for their business operations, and with this, you can even receive or reclaim your tax benefits. Whether you are a business owner or CEO needing a premium model such as an Audi or BMW or are searching for a van fleet from Citroen or Ford, you should be able to find the suitable vehicles you require.
Who can qualify?
Most any kind of business can qualify for business vehicle leasing, but it is most suitable for LLPs or Limited Liability Partnerships, PLCs, partnerships, Limited Companies, embassies, charities, local authorities, or self-employed individuals (particularly those involved in trade).
The process and how it works
- Make your choice and get a quote. As mentioned, the process is quite simple. You can browse through a list of vehicles based on your budget, the make and model, the body type, and so on, and once you have decided on the vehicles you are interested in, you can ask for a quote. You can also ask your prospective leasing provider about other details such as the mileage limit and the length of their terms, which can stretch from one year to up to four years.
- Submit your application. When you have decided that the leasing deal works for you, you can submit your application. Contract hire and leasing for businesses will require a credit check, and you may also be asked to provide further information such as your bank statements, the names and addresses of your company’s directors, and so on. Whilst you may not be asked for any of these in the end, it’s still best to be prepared in case it is requested by the provider’s financial partner.
- Finalise the contract. Once the credit check is complete and your application has been accepted, you can finalise the contract and your order. Ensure you go through the order form as carefully as possible to ensure that it has all the details you require. The financial paperwork may be sent to your address so you can peruse it carefully, and if you are satisfied, you can sign it and send it off to your leasing partner. The final step is to just decide on the delivery date and wait for your vehicle to arrive!