Vehicle Leasing
Vehicle leasing is an option being followed by increasing numbers of drivers as a means of having a new vehicle ready for use including road tax, insurance, fully serviced for the period and breakdown cover.
This way the driver has only to put fuel into the tank and all other regular motoring costs are undertaken under the car leasing arrangement.
- Avoidance of benefit-in-kind taxation that is attracted by company cars
- Relatively low initial outlay
- Full maintenance can be included
- Finance company takes on any risks associated with the residual value.
- Accurate Budgeting.
- Any Make Or Model Of Vehicle.
- New Or Nearly New Vehicles.
The lessor could demand additional guarantees. This is dependant on the credit rating of your business. These can be provided by you, your partners or your bank and might affect your personal credit rating or your current standing with your bank.
You need to check whether it is possible to terminate your vehicle leasing contract early. It may be impossible to do so or at best under heavy penalty. Interest rates are generally fixed throughout the lease which may prove a disadvantage if interest rates fall during your lease period.
This is the regular 'rental' payment you make under the lease agreement to gain access to and use the asset. The lease rate or payment is determined by the total cost of the asset, the length of the lease and the relevant interest rate level. The period of time you agree to rent the vehicle from the leasing company.