subject: Fancy A Brand New Car Every Few Years? - We Reveal The Major Advantages Of Vehicle Leasing [print this page] Most businesses find that vehicle leasing or contract hire has many different economic advantages. It makes sense therefore for those businesses struggling financially to consider how vehicle leasing could save them money. Vehicle leasing involves gaining access to brand new state of the art vehicles or vans at a monthly rate, which works out far less than the equivalent monthly rate for vehicle finance. This monthly cost can sometimes be reduced even further on condition that a larger final, or 'balloon', payment is made at the end of the agreement. Moreover, unlike some finance deals, vehicle leasing has no requirement for security, hefty down-payments, or the ability to show a healthy set of business accounts.
In addition, because the vehicles are new and benefit from a comprehensive manufacturer's guarantee, there are far fewer maintenance costs to worry about. Furthermore, certain leasing agreements will allow VAT-registered businesses to reclaim at least 50% of the VAT on each lease payment. Van or vehicle leasing can also be arranged so as to appear on a business's balance sheet as an asset, consequently helping to make the business appear more attractive to potential creditors and investors, and possibly attract more favourable finance or investment terms.
It is also worth mentioning that for those businesses struggling to offload older vehicles, many vehicle leasing firms will often take such vehicles as part exchange towards the payment of a fresh new vehicle lease. Drivers who are conscious of their environmental responsibilities know it is within their power to make important differences through their choice of vehicle. The more shrewd have come to realise that car leasing further increases this flexibility of choice.
Car leasing is based on paying a regular monthly payment over a set period, in return for exclusive access to a vehicle of one's choice. Taking out a car lease is particularly popular amongst those looking to drive more expensive, up-market vehicles, but who do not have sufficient funds or the means to subsidise a long-term finance agreement. The reason that monthly lease payments are so affordable is that they are largely based on the depreciation over the lease period, rather than on the total purchase price. For a more expensive car that holds its value better than the average vehicle, depreciation rates will be lower, leading in turn to even lower monthly lease payments.
The environmentally-conscious driver will therefore be able to obtain a more fuel efficient car, or perhaps a hybrid vehicle, at an affordable rate, regardless of the car's purchase price. The driver will moreover have complete freedom of choice over vehicle brand, model and any accessories, with no restrictions or limits being imposed. Car leasing will also allow the vehicle to be changed every three years or so, enabling the driver to take advantage of the newest developments in environmental technology.
