Whether you need to travel to get to work or your job requires you to travel across the country, having a car can be the most useful form of transportation. Cars are much more reliable and give you the independence to go where you want.

But what if you need to travel for business but don’t have a car?

Well, there is always the option of business car leasing. This will allow you to have a new car with all the latest features almost immediately. As an advantage, if you rent a car through a company, you as an individual have less risk. In order to receive an approved business lease, though, you’ll need to have a good idea of ​​your credit on business accounts, as they will be checked upon approval. Like a normal car lease, monthly payments will be required once the lease has been agreed; however, like a commercial lease, these payments can be seen as expenses that can be offset against corporation tax. By also entering into a maintenance contract, as well as a commercial car lease, it means that all VAT paid on that lease will be recoverable.

So how does commercial car leasing work?

After you are approved for credit through business accounts, you will place your order covering your specific requests, and then you will be required to pay a deposit as a financial commitment of the agreed contract. Once the deposit has been made and all the other formalities completed and signed, the delivery date will be set and you will have to pay the first initial payment to the company that deals with the financing of the lease.

As is normal because the leases the initial payment is 3, 6 or 9 times the monthly amount. However, maintenance depends on the length of your contract. Like all new lease cars, you have the peace of mind that you won’t have to worry about the car’s ITV unless you have a four-year contract, as the ITV will be required after the third year. If you decide to sign a maintenance contract with your lease, all services, ITV and wear and tear will be covered by your maintenance contract.

Are there any advantages to having a business car lease?

Well, for starters, people always say that “the best impression is always the first.” You may not think this is important when leasing a car, but for business it can make a world of difference. Although the idea of ​​social class is slowly merging over the years, it goes without saying that when you ride in a fancy or expensive car to a business meeting, people will see you as someone from a relatively wealthy background. From this, an idea of ​​”importance” can be clearly identified and can make a really strong impression. Other advantages are some of those mentioned above, such as the fact that when you decide to lease a business car, you will be covered for certain business expenses that can significantly reduce the total cost.

Of course, with all the advantages come disadvantages, and when it comes to commercial car leasing, some of the disadvantages are that since the vehicles are not considered assets of the company, the devaluation cannot be written off for tax purposes. Similarly, other tax issues may arise, such as the number of vehicles and the number of miles that can be claimed. Like normal leases, there will be mileage limitations where anything over the agreed limit will be charged with additional excess fees. As a company, you are still required to provide your own comprehensive insurance on all rented vehicles.