Running your own business isn’t easy.
Not only are you managing sales, logistics and strategy – you also have to deal with everything else, like keeping your clients happy, looking after your staff and making sure you can pay the rent next month.
Often, being an entrepreneur means you feel so swamped you rarely have time to focus on the bigger picture. That being said, it’s absolutely crucial to find the most efficient way to get things done in the most affordable manner.
And, every business, regardless of their industry, needs transport.
Enter car leasing.
What a lot of entrepreneurs don’t consider is how transport is changing. For your everyday business tasks should you buy, hire or lease a car?
While all of these have their advantages and disadvantages, what a lot of business owners don’t realise is that as our economy continually becomes more about access and sharing, so do they underlying structures that comprise it.
The same applies to cars – and, in this post, you’ll find out the best ways that business owners are using leasing as a way to meet their transport needs.
So, if you’re looking for a lease car, why not consider some of the advice and benefits below?
Get a brand new car, with better safety and driver-assistive technology.
Unless stated, most cars on lease are new and integrate the best technology.
This means they’re more reliable, more connected and more intuitive than even a vehicle a few years old. As a business owner, you always want to give yourself the most competitive edge – while still remaining within your budget.
A lot of people don’t realize this, but the intuitive features added to cars in recent years make driving a breeze. Need to parallel park, close a telephone order and straighten you tie at the same time? Your new SUV with parking assist and voice recognition can do all that.
Your high-school BMW with McDonald’s stains on the seats, unfortunately, cannot.
As an added bonus, the safety technology in that new lease car is also the best on the market. This means you’re bound to have better peace of mind if driving by yourself, your family or an employee.
And, when your lease is done – simply hand back the keys and get a better, upgraded car.
Maintenance-included leasing saves you time, money and a whole lot of hassle.
When you’re running your own show, time is of the essence.
A day wasted can mean the difference between closing a great deal, pleasing a client or, in some cases, a brand new venture. If you’re opting for maintenance in your contract, it can potentially take a lot of pressure off your shoulders. Let’s look into that.
Car contracts come in two different formats: customer-maintained and funder-maintained.
With a customer-maintained contract, you have to take care of all the servicing and repairs yourself. This means finding a garage, dropping the car off or arranging pickup and delivery and then paying for those repairs.
Essentially, you’re leasing the car but the repairs and servicing are entirely your responsibility.
With a funder-maintained contract, you’re paying a little bit more every month for your lease – but, a lot of the servicing and repairs then become the responsibility of the leasing company. That being said, the company won’t chase you up and come inspect the car – but, if you do take it in for a service, they will cover most repairs, servicing and spare parts. You can consider opting for car insurance (which the team at Youi can assist you with).
Also, they usually collect the car and already have a list of pre-approved mechanics and garages – so you don’t have to waste time shopping around or wondering if your car is in good hands.
Claim back money on your car lease through VAT is used for business.
One key concern entrepreneurs face when looking for a car is that it’s largely a depreciating asset – and as much as it provides value, might be seen as a waste of money.
However, when you lease your car through your business as a business asset – it is possible to claim back as much as 50% of the VAT on the lease rental if there is some private use involved and 100% if the car is used purely for business.
If you’re not just an SME and have considered a small fleet of vehicles, it is possible to claim as much as 100% of the lease rental against corporate tax.
Furthermore, it’s important to consider that business car leases are 100% tax-deductible for cars including and up to 135g/km and 85% above that figure.
The added bonus?
Not only do you get to use a car for your business and get money back, but if you opt for a more eco-friendly vehicle you get financial benefits and the chance to say your company is doing better things for the environmentally.
Now that’s a win-win.
Leasing is a flexible arrangement with an option for purchase at the end.
Even though people think that there is a clear-cut line between buying and leasing a car, this isn’t always the case.
Sure, lease contracts are designed as use-only arrangements but there are instances where you can choose to buy the car.
Where leasing provides benefits is that it’s highly flexible: your contract length is set, but if your personal needs, business demands or preferences change you can simply hand back the car and get a new one – or, not at all.
If you’ve used the car and it’s serving you well, you can discuss with your leasing agent to arrange a purchase through the funder of the vehicle. This might be relevant for you if you see no point in changing vehicles, or if any damage you’ve incurred to the vehicle is so great that it’s not worth repairing.
The clear and added advantage here is that you aren’t putting down a lump sum to pay for a vehicle in the beginning, and if you find that the vehicle has been of use to you throughout your contract and you’d like to keep it – then this is entirely an option for you.
So, all things considered – is car leasing a consideration for you as a business owner?
As mentioned, running a business can be stressful and even the simplest things can take a lot of pressure off your shoulders.
Whether you’re a relatively new entrepreneur or having a few projects under your belt, every single person can say that easier and more convenient processes in their business can make a world of difference. And, if you’re getting access to the best cars with highly-convenient terms, saving money and great flexibility – maybe this is an option to consider if you haven’t before.
If you’ve never considered car leasing, why not shop around online, do some research and then discuss with a leasing company to hear how they might be able to help you?
It might be the thing that changes your business this year!