Personal vs. Business Car Leasing
In modern employment, having a vehicle is often fundamental to properly fulfilling your job role: builders need a suitable van for transporting goods from one site to another; small retailers need a vehicle for delivering items to local buyers; and high-flying executives need a car that will make the right first impression.
Irrespective of the particular make or model that they require, many people turn to car leasing companies like Car4Leasing to help them out. However, it’s not quite as simple as just picking the vehicle that you like; you’ll also need to make a choice between a personal or business package, and settling on the right decision could have a big impact on your finances and the suitability of the arrangement.
If you need some help choosing between the two, then here’s some information to help you out…
The Differences between Personal and Business Car Leasing
When it comes to choosing between personal and business car leasing, most large enterprises will instantly settle on the latter, but the decision may be a little more complicated for smaller ventures due to the differences between the two.
Taxation
The key factor to consider will be how different types of leasing impact the way in which you’re taxed, as a business lease will often prove more beneficial for those who are VAT registered. Should you settle for the simpler personal leasing option, you’ll find that you will lose these benefits, so it’s often a good idea to consult your accountant and have them assess which option is best for you with regard to your individual circumstances.
Different Terms
However, personal leasing also has its benefits, and one of these is that the terms are often more favourable for smaller businesses than their business leasing counterparts. With regards to the latter, you may find that the deal you are offered is not as generous as it would be for a larger enterprise, and that a higher initial payment may be required. You might also be expected to jump through additional hoops, and provide information such as bank statements and audited accounts for your main company directors.
Car Insurance
One final point to consider is the implications that business leasing would have on your insurance. As a rule, this will have to be extended to commercial use, and this will usually mean that you have to pay an additional premium.
If you’re considering leasing your next commercial vehicle, which option would be best for you? Be sure to choose wisely in order to make the most of your arrangement.
