Business Car Leasing promotes Growth and Savings

The primary goal of any business concern is to earn profit. If they purchase a fleet of vehicles for business purposes, they would be investing a lot of money and would also have to pay huge amount of money in servicing. They will have to incur loss in terms of the depreciating and low-resale value of the vehicles. A lot of money will be tied up in assets which could otherwise have been used for important business purposes. An efficient and cost-effective option for any business, large or small, would be business leasing.

Business car leasing means the renting out of vehicles for use by businessesand organizations for business purposes. They do not have ownership of the vehicles and can only use it for the time period mentioned in the lease contract. The contract can be for a maximum of 60 months. Since the businesses do not own the vehicles, they do not have to pay road tax on each vehicle. The money saved can be used to further the business. With business car lease deals, the company can lease out brand new vehicles after every 2 or 3 years. This will help to create a good impression among the clients, since every time they visit, they will be driven in new vehicles having advanced features and better safety. For most part of the lease term, the repairing costs of the vehicles will be taken care of by the warranty provided by the manufacturer of the vehicle and for the remaining term, the user can lease out affordable car servicing and maintenance packages. Most leasing companies offer the option of purchasing the vehicle at the end of the lease term, if the user is interested. The vehicle isoften sold at a price much lower than the original market price.

If you want to avoid paying extra to the leasing company, calculate the annual mileage limit used and draw up a lease contract accordingly. Try not to exceed that limit and keep the vehicle in a decent condition.

Do you want to avoid paying road tax? Do youroughly know the fixed mileage that your vehicles run in a year? If you do, leasing is probably a good idea for the health and growth of your business. Log on to www.lvm.co.uk to know in detail about the various business deals offered.

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Personal Car Leasing Explained

What is car leasing?

Car leasing is similar to renting, where a person only pays for the use of a vehicle over a specific period of time. There are two types of leasing that leasing companies offer –personal and business car leasing. The lease term usually covers a maximum period of 60 months, after which the users are expected to return the vehicle to the finance company in a decent condition. Leasing a vehicle is very popular owing to the depressing economic conditions and the compulsion among most people to live within a budget.

Personal contract hire

The option of personal contract hire is only available to private individuals for their personal use. If you want to lease out a vehicle for business purposes, you will have to refer to business contract hire. With personal contract hire deals, the users pay the company a fixed monthly payment covering the lease period. This payment is predetermined and is not subject to the ups and downs of the market. The user does not have ownership of the vehicle, though he can use it as if it were his own. The company retains the ownership rights and after the expiry of the lease term, the car should be returned to the company in a decent condition. The user can renew the lease term after its expiration or can just hand over the vehicle. Some of the leasing companies also offer the users the option of purchasing the leased vehicle, if they so wish to. The leased vehicle is sold to them at a much lower price as compared to its original market price.

Perks of personal car leasing

•    Opportunity to drive brand new vehicles but not having to spend too much. Leased vehicles do not involve any huge upfront or initial cost and the monthly payments are also quite low.

•    The users do not have to undertake any financial risk as they are not subject to the depreciating value of the vehicle; neither do they have to worry about selling the car nor do they have to pay the entire price of the vehicle.

•    Maintenance of the vehicle is normally included in the lease term.

•    Freedom to drive better cars with advanced features after every 2 or 3 years.

•    No long term expenses compared to purchasing a vehicle.

Log on to www.lvm.co.uk and learn more about leasing deals.

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