Business leasing

Types of business leasing

There are different types of leasing options available to suit a range of businesses. You can customise leasing contract to suit your needs with a range of options, including servicing and mechanical maintenance, projected mileage and more.

There are 2 main types of business leasing:

• Business contract hire – a long term lease for a vehicle with a fixed monthly rental cost and annual mileage limit. The standard time span is between 24 to 60 months.
• Business contract purchase – similar to business contract hire, but with the option to keep your vehicle at the end of the contract.

Why lease a company car?

If you want your employees to drive safe and reliable vehicles, then car leasing can be a good option for your business.

• Fixed monthly costs.
• Avoid large upfront payments or depreciation costs.
• No unforeseen motoring expenses.
• Reduced admin (tax discs, MOT certificates)
• Potential VAT savings (if your business is VAT registered).
• Better cars for your company - uphold professional image with customers.

Checking eligibility

Car leasing is available to most businesses that meet the required criteria for the contract. As with any finance agreement, one of the main criteria is a positive credit history. Before starting a contract, you need to undergo credit checks into company accounts and business director's details if you're a limited company.

New businesses can lease a business car as long as they can afford the monthly payments and have a reasonable trading history.