If you are looking for vehicles to operate your business or you want to provide company cars for employees then some form of car leasing is what you should be considering. Car leasing for businesses allows your business access to a depreciating asset without the obligations of ownership and with the added incentives of tax savings via contract hire.

In addition to the financial attractions of car leasing, there are administrative advantages as well such as updating company car records and organising maintenance. Car leasing companies already have an established infrastructure in which provides the ability to handle your business car leasing requirements with speed in a cost-effective manner.

Additional advantages of car leasing:

• Better Cash Flow. Car leasing gives you access to the car with minimal up-front payments and spreads the cost over time. You to pay for the car with the income it generates while minimising the drain on your working capital.
  
  
• No debt. An operating lease preserves your credit options and does not influence your credit limit as it is generally not classified as debt but as expense (note that this advantage does not apply to finance leases!).
  
  
• Maximise Financial Leverage. Your lease can often finance everything related to the purchase and maintenance of the car and may free up cash flow to pay for items such as training.
  
  
• Simplified cash flow management. Lease payments are usually flat, making cash management more predictable and easier than with a variable rate loan. The fixed interest rate of a lease also helps if interest rates rise.
  
  
• Tax advantage. Operating lease payments are generally tax deductible just like depreciation charges but are made with pre-tax money. Cash purchases, in contrast, are made with after-tax money. Hire purchase agreements allow the lessee to claim capital allowances.
  
  
• Flexible time frames. Leasing contracts can be structured to fit your requirements. Use a car as long as you need it without owning it forever.
  
  
• Hedge against obsolescence. Depending on your end-of-lease option, just return the car to the lessor. You will not have the hassle of selling the used car or run the risks related to residual value and (technical) obsolescence.
  
  
• Additional advantages. Some leases offer additional advantages such as cancellation options or asset maintenance.

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Leasing