Business Car Leasing
Business car leasing presents the ideal solution for the corporate user by providing a vehicle or vehicles on a fixed term contract, enabling the corporate user to accurately predict the costs of each vehicle, both month-by-month and annually. Whether for one car or a large and varied fleet of vehicles, corporate car lease will provide a simple and cost effective solution to funding a company’s motoring needs.
Business Car Leasing Contracts
Here at carleasinguk.com our contracts are tailored specifically to suit the needs of the user and can be for any time scale between 24 and 60 months – we do not tie clients into annual durations. There is also the option to include any or all of the following “add-ons” - maintenance, tyres, breakdown and recovery, roadside assistance and relief vehicle when calculating the monthly rental payments. Portions of these rental payments are also VAT-reclaimable, and the road fund licence is included for the duration of the contract. The only extra expense incurred over and above the rental payments will be the consumer variables, such as motor insurance and fuel – or additionally the required maintenance and tyres etc., if these have not been included in the contract.
Business Car Leasing Agreement
We are able to provide a lease agreement to the client’s particular requirements, for the car (or commercial vehicle), the contract duration and the contracted mileage – including any add-ons as mentioned above. Ninety-five percent of all the vehicles supplied on agreements are new and are sourced from our UK based dealer franchised network. Over the many years carleasinguk.com has been active in the marketplace, we have built up strong and lasting business relationships with the UK manufacturer franchised dealer network, enabling us to negotiate discounts not normally available to the general public, whether as a private individual or a corporate client – and we are able to use these discounted vehicle purchase prices when preparing quotations for leasing a car. We also have access to funding for car leasing from several major household name funders with whom we have also built a long lasting business relationship. We are able to take advantage of “special offer” vehicles available on contracts through our funders, which again would not be available to the general public.
Car Leasing Depreciation
Vehicles on lease agreements do not suffer the depreciation costs inherent in company-owned vehicles and there are no disposal problems – you are not left with a depreciating asset and we arrange collection at the end of the contracted term. When purchasing a vehicle the purchase is made with a capital sum; but with leasing a car there is only a small initial capital outlay, normally a sum equivalent to three monthly rentals, which is payable just before the delivery of the vehicle to be taken on the agreement, and a small deposit is taken at the order stage to enable us to secure the vehicle or build slot with the supplier.
After the initial contact with carleasinguk.com for leasing a car is made, whether by telephone or by an email enquiry from the website, your enquiry will be handled by one specific team member, who will become your dedicated account manager. Your account manager will spend time talking to you and discussing the type of business contract suitable for your needs – this could be contract hire, contract purchase, lease purchase or occasionally hire purchase. Once we are happy that the right contract for your needs has been established then your account manager will discuss your vehicle requirements, your budget and your projected annual mileage. He or she will then be able to provide quotations for your needs – which can include any of the “add-ons” such as service and maintenance, tyres, additional breakdown cover and relief vehicle provision, if required. You may be pleasantly surprised to find that vehicles you had previously considered out of reach become affordable when funded by leasing agreements.
The account managers and also the office staff at carleasinguk.com have a deep knowledge of the contract hire and specifically of the car lease market and also of the motor trade as a whole, many of them having worked in prestige motor dealerships before working here at carleasinguk.com. We pride ourselves on the high level of personal service that we are consistently able to offer our clients, most of whom return to us each time their lease or personal car leasing contract is due to end, allowing us to continue to supply them with vehicles suitable for their own individual or corporate needs.
Once the account manager has all the information he or she needs then they will be able to provide a quotation, or quotations, for consideration. The quotation is calculated by using the purchase price of the vehicle, the additional costs (if any) of items to be added in to the car leasing contract, the projected annual mileage and the residual value of the vehicle at the end of the lease period. The cost of funding the vehicle over the contractual period is then split into portions to give the final monthly payment. This method of calculating monthlylease rentals is used for business contract hire, business contract purchase and business lease purchase agreements. For business hire purchase agreements the payments are calculated using the purchase price of the vehicle, plus the interest on the capital sum (the purchase cost). There is always a deposit to pay, and once this has been agreed and deducted from the capital sum plus interest the monthly payments are calculated by dividing the outstanding finance balance by the months of the agreement. This type of leasing is explained in more detail below and on the Hire Purchase pages of our website.
When the final decision has been made as to which method of car leasing is to be used to supply the vehicle, carleasinguk.com will arrange for all the necessary contractual documents will be sent directly from our offices to the client for signature. These must be returned to carleasinguk.com, and the initial rental payment made, before delivery.
Whatever type of leasing contract is eventually decided upon, carleasinguk.com will arrange the delivery of the vehicle direct to the end-user’s chosen location. This delivery is normally made by the supplying UK-franchised dealer’s own delivery team, ensuring that the client receives a full hand-over and explanation of the vehicle’s operation. We can, of course, arrange for a “showroom collection” at the supplying dealer’s premises if preferred. Throughout the life of a contract carleasinguk.com’s Customer Care team are on hand to answer any questions that may arise and to help solve and problems, and the account manager will be happy to supply quotations on any additional vehicles which may be required – either for the corporate user or the personal car leaseuser on personal contract hire or personal contract purchase.
As the end of the contract nears, the account manager will ensure that he or she contacts the contract holder to ascertain their ongoing requirements, and will be able to supply new quotations as necessary. Collection of the vehicle (without cost to the contract holder) is arranged by carleasinguk.com, usually to co-incide with the delivery of the next vehicle being taken on business contract hire.
The corporate or business module is popular with business user – from the sole trader up to the largest multinational company who have long since recognised the benefits of using business leasing for their corporate vehicles. The various types of corporate lease available – business contract hire, business contract purchase, business lease purchase and (less popular) business hire purchase are explained briefly in the paragraphs below and more fully elsewhere on the website.
Business contract hire – perhaps the best known form of funding business lease requirements – has historically been the motor popular form of business motor finance. This is in no small part due to the ease of writing a business contract hire agreement for the business community: the business contract hire can be taken over any period from 24-60 months, can include or exclude the maintenance element, has a fixed excess mileage charge, and parts of the business contract hire are VAT-reclaimable. Additionally, there is only a small capital outlay, and there are no depreciation costs. This enables the business user to calculate his costs for his business motoring requirements on both a monthly and annual basis. Additionally, business contract hire is available for cars and vans and vehicles can be liveried if required.
A further option for the corporate client is business contract purchase. An arrangement using business contract purchase is solely for the business and corporate user. Here the monthly costs of the business contract purchase are calculated by using the cost of the vehicle, the projected annual mileage and the duration of the contract required, together with the value of the car at the end of the business contract purchase agreement. This figure is often known as the Guaranteed Future Value, or the “balloon payment”, and this provides the option to purchase the vehicle at the end of the contract purchase agreement for a known amount – the balloon payment. If the company decides that it does not wish to purchase the vehicle it can either be handed back (we will arrange collection for you); or start again with a business contract purchase agreement, or indeed any other type of business agreement which may be more suitable – the account manager will he happy to give any advice needed when discussing renewing the contract. The business contract purchase term options are the same as those described in the paragraphs above, including the VAT-reclaimable elements, and as with business contract hire agreements, with a business contract purchase there is the option to add in the maintenance costs, if required.
Users of business leasing have a similar option to business contract purchase, which is business lease purchase. A business lease purchase contract is structured in a similar way to a business contract purchase, and is sometimes known as hire purchase with a balloon, at the leasor has to pay the “balloon payment” at the end of the contract. The monthly rentals are also determined in the same way for business lease purchase contracts as for business contract purchase contracts. When the end of the business lease purchase agreement is reached the company then makes a payment equivalent to the balloon payment and at this point the vehicle then becomes the company’s property. Additionally, business lease purchase contracts give the option to settle the motor finance at any stage of the agreement, and as with the other two types of leasing described above there are elements of the contract which VAT-reclaimable.
A business hire purchase agreement is made with the business hire purchase agreement holder paying an initial deposit followed by the agreed monthly repayments – these payments will be calculated on the price of the vehicle, less the deposit, and the balance left will then be divided into equal monthly payments taking into account the interest on the money borrowed, over the life of the business hire purchase agreement. We are able to tailor a business hire purchase agreement specifically to the period that the company requires – although the industry norm is 36 or 48 months the business hire purchase contract can be for any duration up to 60 months. At the end of the business hire purchase term the vehicle then becomes the property of the individual or company who paid the instalments. Business hire purchase agreements typically include the registration fee (where applicable for a new vehicle) and the first year’s road fund licence, with the road fund licence being the private individual or company’s responsibility thereafter. The maintenance of the vehicle, and the insurance, fuels etc. remains the responsibility of the business hire purchase agreement holder.
A business hire purchase agreement is a simple way of finding motor vehicle finance for the business user, particularly if the end user wants to own the vehicle at the end of the contract. A business hire purchase agreement can be a simple and affordable way for the small business user to drive the car – or perhaps the van - of their choice at an affordable price, and our team of experts here at carleasinguk.com will be happy to discuss your leasing options with you, including business hire purchase. Whilst there will be no excess mileage charges on a business hire purchase agreement there will be disposal issues at the end of the agreement – although we would be able to help with this if another business contract was taken via carleasinguk.com
Leasing is the modern, cost efficient way of funding a company’s motoring needs – providing a vehicle or vehicles at the right time, on the correct contract to suit the client’s wishes – making leasing an affordable for the corporate user to drive the vehicle – or company vehicles – of their choice. Our team at carleasinguk.com will be happy to answer any questions that you may have and to provide quotations – please contact us today and let us show you how business car leasing can make the often unaffordable affordable.
