If you run a small to medium sized business, you have lots of choices when it comes to financing your company cars. With a wide choice of purchase, car lease and contract hire deals available; it can be tough to find the right option for your business.
Now, the UK’s leading business car finance provider, Lex Autolease, says that more and more companies are turning to business car leasing. But why is a business car lease a good choice for a small company? Keep reading to find out.
More and more small and medium sized businesses turning to car leasing in the UK
Lex Autolease report that they increased the size of their small and medium sized customer base by 22 per cent in 2012. More than 9,400 new SMEs chose to lease or buy their cars through Lex Autolease last year and the market leader believes that even more SMEs are ready to use contract hire and car leasing in the UK in 2013.
Tony Murtagh, head of SME at Lex Autolease, said: “Small and medium sized companies have a crucial role to play in helping to improve the UK’s economic fortunes. A large percentage of these businesses rely upon their safe vehicles to carry out their day to day operations and we want to provide them with the support they need to keep on the road.
“The support that we offer includes helping them to select the most appropriate type of vehicle for their business, analysing the different funding options available and guidance on how to best manage fuel costs.”
Over the last year, smaller companies have also become more aware of the costs associated with running business vehicles and, according to Lex Autolease, SMEs are increasingly choosing more fuel efficient cars. This has resulted in a 10 per cent drop in the average CO2 emissions across the firm’s SME customer base from 148g/km in 2010 to 135g/km last year.
It is clear that the number of small and medium sized businesses using car leasing and contract hire is increasing. But, why should you use a business car lease if you are a SME? We answer this question next.
Why you should use a business car lease for your small business
Ralph Morton, editor of Business Car Manager magazine says that ‘the beauty of using a business car lease for an SME is the access to new cars or Car finance, new technology and better running costs at discounts that large fleets usually enjoy.’
Car leasing only requires a small lump sum up front (typically three or six months payments) which can help your cashflow. And, whether you choose to contract hire through your company (a business car lease with VAT benefits) or use a personal lease (Personal Contract Hire) you will have access to a brand new car every three or four years.
Bear in mind that you will tie yourself into a contract which can be expensive to cancel if your company’s circumstances change. You should also carefully monitor the mileage and condition of the car to avoid additional charges at the end of the leasing agreement.
However, Mr Morton says that, if you own a small or medium sized business ‘there’s much to recommend the leasing experience.’
Written by Vincent Hill
Sherwood Garage provides people in search of Car Dealer Glasgow with the best selection they can choose from. For years now, Sherwood Garage have delivered the exceptional service of delivering admirable and safe types of cars to our clients’ garages.
Thank you, Vincent. We feel sure our American small to medium businesses want the best ways to ensure their fleet vehicles are safe and convenient to acquire. pb