If you’ve overheard one of the increasing numbers of people who are turning to short term car leasing singing the praises of their car leasing deal, you probably wonder how the two options compare head to head. Well Business Car Manager, the business motoring magazine, recently published 5 practical reasons to lease your new company car instead of buying it, and we do thoroughly agree with the following points!
1: Depreciation – For fixed cost motoring, short term car leasing is the clear winner. Depreciation can be somewhat unquantifiable, until of course you come to sell-on your car. It’s at this point you can accurately calculate the losses of the car.
2: Capital – Even if you chose to take on a finance agreement, you’ll more than likely be paying a ten per cent deposit and your monthly payment will be much higher than a monthly leasing cost. So short term leasing takes this one!
3: Maintenance – Car owners are of course responsible or all maintenance costs of their vehicle. With short term leasing, in many cases, even tyres are covered by the leasing company.
4: Disposal – Selling on company vehicles is timely and costly. From advertising, trading–in and auctioning, the process requires a great deal of management. With short term leasing car deals, you hand your old vehicle back and take your new one away.
5: Used Car Pitfalls – Businesses opting for used vehicles may be avoiding that large initial vehicle depreciation, but the upkeep, running costs and potentially high ‘benefit in kind’ for drivers makes leasing seem more attractive. The fixed price motoring that contract hire provides also means that businesses can claim back 50 per cent of the VAT back from the monthly contract figure and 100 per cent back from the maintenance. If the vehicle is a commercial vehicle, then 100 per cent of the VAT can be claimed back.
So perhaps don’t suffer the depreciation hit and don’t settle for less than reliable motoring. Have it all! Speak to Short Term Leasing to learn more about reliable, fixed cost car leasing deals!