Why Businesses Need To Lease And Not Purchase Their Vehicles
Where Do You Live?
Like most other places in the world lease cars UK allows you many benefits over purchasing a vehicle. One of the main contributing factors is that there is no deposit to be paid as there would be if you were to purchase a vehicle. Therefore all you need to worry about is the monthly payments without the hassle of additional costs often associated with vehicle ownership. There is no difference in this respect between car and van contract hire however van leasing does in fact offer extra benefits.
The level of insurance cover you receive for leasing a van is very comprehensive and one of the main reason people choose the leasing option. This keeps you fully covered from any external or internal damage to your vehicle as well as protecting any tools you may be carrying.
There are however some UK specific changes that are set to be put in place and will have an effect on the cost of car leasing. You will find a VAT rise in place from 17.5% to 20% from the 4th of January 2011 in the UK. Car fuel and company car tax also are notable changes along with a change in capital allowance that will affect those leasing in the UK.
50% of VAT associated with the finance of a leased vehicle along with 100% of VAT for maintenance can be reclaimed. However if there are elements of private use for the vehicles when purchasing then the VAT cannot be reclaimed. As you can see in these cases leasing vehicles is a much more enticing option for businesses in the UK.
Capital allowance changes have meant that there is a reduction on the amount paid for certain vehicles with certain levels of CO2 emissions. Also scheduled for the future are changes that will allow those who lease eco-friendly cars to make additional savings. This may mean that you will want to look for another car rather than a BMW 6 series.
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