Whether you need to travel to work or your job requires traveling across the country, having one may be the most useful form of transportation. Cars are much more reliable and give you the independence to go where you want.
But what if you need to travel for business but don’t have a car?
Well, there is always the option of commercial vehicle leasing. This will allow you to have a brand new car with all the latest features almost immediately. As an advantage, if you rent a car through a company, you, as an individual, are at less risk. However, to receive an approved business lease, you will need to have a good idea of your credit on business accounts as they will be compared to the approval. As in a normal car lease, monthly payments will be required once the lease has been agreed, however, as a business lease, these payments can be seen as expenses that can be offset by corporation tax. By also signing a maintenance contract, as well as a commercial car lease, all VAT paid on that lease will be recoverable.
So how does business car leasing work?
After the credit is approved through the business accounts, you will place your order that covers your specific requests, and then you will have to pay a deposit as a financial commitment to the agreed contract. Once the deposit has been made and all other paperwork has been completed and signed, the delivery date will be set and then you will need to make the first down payment to the company that is handling the lease financing.
Like normal car leases, the down payment is 3, 6, or 9 times the monthly amount. However, maintenance depends on the duration of your contract. Like all new rental cars, you have the peace of mind that you won’t have to worry about the car’s ITV unless you have a four-year contract, as the ITV will be required after the third year. If you decide to enter into a maintenance contract with your lease, any service, technical inspection, wear and tear will be covered within your maintenance contract.
Are there any advantages to having a commercial car rental?
Well, for starters, people always say that “the best impression is always the first impression”. You may not think this is important when renting a car, but for business this can make a big difference. Although the idea of social class is slowly coalescing over the years, it goes without saying that when you get into a fancy or expensive car to a business meeting, people will see you as a person from a relatively wealthy background. . From this, an idea of ”importance” can be clearly identified and can make a really strong impression. Other advantages are some that were mentioned above, such as the fact that when you decide to lease a commercial car, you will be covered by certain business expenses that can significantly reduce the overall cost.
Of course, all the pros come with cons, and when it comes to commercial vehicle leasing, some of the cons are that since the vehicles are not considered business assets, the devaluation cannot be written off for tax purposes. Similarly, other tax issues can arise, such as the number of vehicles and the amount of mileage that can be claimed. Like normal leases, there will be mileage limitations where anything in excess of the agreed limit will be charged with additional excess fees. As a business, you must still provide your own comprehensive insurance for all leased vehicles.