For many kinds of businesses, a commercial vehicle is a necessity that they can’t successfully operate without. Generally speaking, there are two questions you should ask yourself when it comes to financing a vehicle: whether you should buy or lease. Leasing has become incredibly common amongst businesses Here are just few of the comparative benefits.
You Can Change Vehicles Every Few Years
One of the major advantages leasing provides is the ability to change your vehicle every few years. This isn’t about style over substance either. Manufacturers are always aiming to improve key areas, like fuel economy, storage capacity, and overall comfort, so by choosing to lease you’ll have the opportunity to take advantage of these advances.
You Don’t Have to Worry about Depreciation
According to The AA, the average new car loses value the moment you drive it off the dealership forecourt. Over the first year, you can expect around 40% of the original value to have depreciated with a further 20% expected over the next two years. Since you don’t actually own the vehicle while leasing, you won’t have to worry about this anymore.
You Can Save Money by Reclaiming the VAT
When you lease a car, you can typically claim 50% of the VAT. If the vehicle is to be used solely for business, and not private use, you should be able to reclaim all the VAT. You may also be able to reclaim some of the fuel costs under the Flat Rate Scheme.
Contracts Often Include Maintenance Fees
Some lenders like Van4Leasing.co.uk are also able to offer packages that include the cost of maintenance fees and breakdown cover into their monthly rates. This means that in the event you have any mechanical issues, you won’t have to bare any additional expense. Remember, though, you’ll still have to pay for comprehensive insurance during the course of the contract.
Multiple Types of Contracts
Finally, because leasing contracts are available in multiple forms, you can still have the benefits of ownership along with the conveniences of leasing the vehicle. If you think you’d rather own the vehicle outright, a contract hire purchase gives you the option to purchase the vehicle at the end of your scheduled agreement.
For those working on a strict budget, getting the best deal will be one of your main priorities. Leasing allows you to do this by paying a fixed-rate, monthly fee without having to worry about any nasty surprises.