Our car leasing information page explains how car leasing works.
The customer must get the right car leasing information. With the correct information they can decide if car leasing is going to suit your requirements or not.
Leasing cars and vans is a great way for businesses to get cars and vans without a large initial cost or risk from depreciation.
Businesses such as Partnerships, Sole Traders and Ltd Companies all make use of car and van leasing
Leasing releases of tied up funds for further effective use within a business, generating the optimum cash flow.
Car Leasing statistics
Recent car leasing statistics have revealed that around 62% of company vehicles are financed by way of car leasing. The reason for this being that new business owners are discovering the advantages of this form finance. This trend indicates that the percentage is constantly increasing.
Car leasing and van leasing costs are determined as a result of the depreciation on a vehicle over a set term and mileage, together with fixed interest charges, assuming the customer does not exceed the agreed mileage or create any damage to the car or van.
Vehicle maintenance options can be added to the leasing deal together with accident management. Choosing these extra leasing options can be used to create a more comprehensive package, which suits some business’s who prefer to save important admin time for other things…
Car Leasing makes simple budgeting for forward company planning with fixed hire vehicle costs. The only added variables are the overheads for fuel and insurance when a full package is taken out.
Whether it is a business or personal lease that is required, there are several choices available. These are contract hire, personal contract hire, finance lease or personal contract purchase.
VAT and Leasing
Leasing has become increasingly popular since 1995 as a result of the VAT laws and regulations which enable the finance companies to reclaim all the VAT back on the purchase of new cars. This reduced car cost less the VAT is passed on to the customer who is leasing a car.
For VAT registered businesses you can also claim back up to 50% of the VAT charged on a car lease. You can also claim back up to 100% of the VAT charged on the maintenance.
For vans and commercial vehicles used only for company work the business may claim 100% of the VAT on both the funding and the maintenance.
Some business directors prefer to take a car allowance and have a personal contract hire in order not to incur benefit in kind tax.
At the end of the leasing agreement the car or van is returned to the finance supplier. When a lease ends the vehicle is usually collected by the funding company.
Extending a Lease
On certain occasions the customer may wish to extend the lease for a further period. More often than not finance companies are prepared to extend the lease to help the consumer out.
Overall car leasing has turned out to be a great asset to firms who like to have set costs with no hidden extras.
1st4 leasing will be happy to provide more car leasing information upon request. 1st4 will answer any questions you may have in connection with car leasing and contract hire.
Having the right car leasing information can help you decide if you would like to lease a car or van.
1st4 car leasing have more information on their website.
More in depth information can be found here at the 1st4 car leasing faq website.