Leasing a company car can be a great option to get you and your staff around to meetings and events, but it can also be a bit overwhelming if you don’t really know the market – which can result in you spending a lot more money than you’d like. That’s where leasing specialists come in, as they will help you navigate this complicated process.
Factors to Consider When Leasing a Company Car
Before you begin the process of leasing a company car, you should decide on a few things:
- Type of Car: This will depend on the nature of your business. For example, if you run a delivery service, you may need a van or truck, whereas if you are a salesperson, you may need a more luxurious car. It’s important to choose a car that meets your business needs and reflects your brand’s values.
- Length of the Lease: Most lease agreements are between two and four years, but this can vary. The length of your lease will determine your monthly payments so you should ensure that this fits within your budget for your operation costs.
- Mileage: You need to choose a mileage allowance that meets your business needs and doesn’t incur any extra charges if you exceed it. So, ensure that you have an accurate idea of how much you and your staff will be travelling on a monthly basis.
Understanding the Different Types of Leases Available
There are several different types of leases available for your company car. The most common types are closed-end leases and open-end leases:
- Closed End: The lessee is responsible for paying a set monthly payment for the term of the lease. At the end of the lease, the lessee can either return or purchase the car.
- Open End: The lessee is responsible for paying the difference between the residual value of the car and the actual value at the end of the lease term and it is typically used for commercial vehicles.
Common Mistakes to Avoid When Leasing a Company Car
There are several common mistakes that business owners make when leasing a company car. One of the biggest is not negotiating the lease agreement. Many business owners simply accept the terms offered by the leasing company, without trying to get a better deal.
Another common mistake is not reading the fine print in the lease agreement. You should always ensure that you read the agreement carefully and understand all of the terms and conditions before signing It so you don’t get caught with any surprise costs later.
Many business owners don’t consider the long-term costs associated with leasing a car either. Be sure to factor in things like maintenance and repairs, as well as any fees associated with ending the lease early.
How Leasing Specialists Can Help You Get Best Deal for Your Company Car
Leasing specialists like Vantage Leasing are experts in the field. With their help, you’ll be able to find the right car and lease agreement to meet your needs and budget. They will go through all of your criteria with you, determining exactly the type of vehicles your staff needs based on your business model while helping you minimise your operating costs.
Since they know the ins-and-outs of the market, they can present you with all of the best options that suit your company and employees. By helping you understand the different types of leases and how they are suited or not suited to your situation, they will guide you through the process so you can get the best deal.
The Importance of Reading the Fine Print in Your Lease Agreement
Even with a great leasing specialist on your side like Vantage Leasing, you shouldn’t neglect to read the fine print. Of course, they will keep you abreast of any important terms that you should be aware of, but it is still important that you are aware of exactly what your agreement entails.
The lease agreement will outline all of the terms and conditions of the lease, including the monthly payment, the length of the lease, and the mileage allowance. You should take a note of these as a short summary so they can be easily accessible in your company’s business records.
It’s important to read the lease agreement carefully and understand all of the terms and conditions before signing it. If there is anything you don’t understand, ask the leasing specialist to explain it to you.
Final Thoughts on Leasing Company Cars
Leasing a company car is a great option for business owners, allowing them to save money in the long term due to the quickly depreciating value of vehicles. Still, there is even more money to be saved by taking your time to do the research to work out your exact business needs and working with leasing specialists to get the best deal possible.
So, make sure you consider the important factors such as the most appropriate type and length of lease for your business, as well as the best vehicle and mileage allowance to suit your employees. You should always read the fine print carefully before signing it. By following these tips, you can maximise your investment and get the best deal for your company car.
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