Why Leasing Cars is Cost-Effective for Businesses

When it comes to businesses looking to add to their assets, they will always want to find the most cost-effective solution. If looking to add business cars, it is always best to lease the automobiles. Whether your business relies heavily on a large fleet or you simply have one company car, leasing makes the most financial sense and is a great option for both big and small companies.

What is Leasing?

So, what exactly does leasing involve? Instead of purchasing a vehicle outright or paying for it over an extended period of time (hire purchase), a lease involves hiring the automobile for a predetermined period (often 2 or 4 years but this is usually negotiable). During this time you will make monthly payments and then simply hand the keys back at the end of the agreement. There are often annual mileage allowances and a charge is incurred if this is exceeded (the distance is often negotiable).

The Main Benefits

One of the major benefits of leasing a car for business purposes is the fact that you can avoid as much as 100% of VAT when you hire a car. This is if the automobile is solely used for business purposes, but even if it is used for personal reasons then you can still avoid a large percentage of VAT. Needless to say, this is a huge financial advantage.

Other Advantages

The other benefits of leasing are that you completely avoid vehicle depreciation – this can be as much as 60% after the first three years of ownership. Additionally, leasing allows businesses to add brand new vehicles to their fleet every few years. This can boost morale, but you could also benefit from greater fuel efficiency and other improvements. driving new cars is also a way of promoting that you are a successful business.

Leasing companies like Car4Leasing often include a full maintenance and service package as part of the agreement too. Finally, these hire agreements have much lower monthly payments than hire purchase deals and this
makes them more cost-effective. From a financial standpoint, there are many benefits of hiring a car for your company. You can avoid VAT and depreciation, the monthly payments are manageable and you do not have to pay a huge sum upfront. There are then other benefits, such as getting to drive a new car every few years and not having to worry about selling the car on. Overall, leasing is a smart move to make for any business looking to add to their fleet and much more cost-effective than buying outright or hire purchase deals.

Chevrolet Suburban Vs Removal Company: Which One Is Most Helpful?

There was a time when you could fit all your belongings in the back of a tiny car and just drive to your next student accommodation, or back to your parents’ house for the summer. Unfortunately, it seems that the older you get, the more stuff you collect. Suddenly moving day is too much work for your little car; you’d be lucky if you managed to move all your stuff in two trips with help from a friend with a slightly bigger car. There are two solutions to this; you can get a car with huge trunk space and leave your furniture behind, or you can hire guys with a van like all grown ups do. How does a Chevrolet Suburban compare to any removal company?

Chevrolet Suburban


Massive trunk space: The Suburban boasts more than 120 cubic feet of cargo space, so it can fit many packing boxes for a secure journey – especially if you put your Tetris skills to good use. Whether you’re transporting boxes or bed frames, there’s still plenty of room for passengers to sit comfortably up front, and help with the lifting once the journey is over.
Massive engine: Although the Suburban’s 5.3L EcoTec3 V8 engine isn’t exactly fuel efficient, it’s still large enough to get you from one end of the country to the other without stopping for petrol.


Parking: Suburban’s size advantage is great for hauling your belongings to your new house, but it’s not the easiest car to park. If you don’t have a parking space you’re going to have a hard time finding somewhere to unload your boxes.
Fuel: You’d better hope you can move all your stuff to your new place in one trip. Too much back and forth between houses is seriously going to increasing your petrol bill.

Removal Company


One trip: All removal companies have a van that is bigger than any car you could hire, so it’s a no brainer that they will get everything you own to your new place in one trip, no matter how big your stuff is. If you’re looking for a company that you’re certain can transport big items, check out the best autotransport quotes 2017 – Shiply was highly recommended by its users for its removal services. Shiply even transports cars to different countries, so you know they can handle your relatively big sofa.
One-off payment: You might convince yourself that driving your stuff out yourself will be cheaper than hiring a company, but if you factor in petrol expenses it’s not such a bargain. Looking on price comparison sites for the best deal won’t take up too much of your time, and you can find a deal that suits your budget.


Weekends: You’ll likely decide to move house on a weekend because you have other commitments during the week. However, removal companies charge more on the weekends, so you might not get the bargain you wanted.
Inexperienced men: Always do your research before hiring a company.

Should you pick a car or a van for your next business vehicle?

Choosing a business vehicle, whether it is the first or the tenth time, can be daunting. There are many different aspects of the business that must be factored into the purchase of a business vehicle and weighing them up against one another can seem impossible. What’s even more confusing is that there are many manufacturers that produce vehicles combining the comfort and convenience of a car with the practicality and pragmatism of a van.

Above anything else, the answer to this question depends on what your business does. Transporting goods and equipment is relatively unimportant to many businesses, especially in the technological age, so picking a car may seem more convenient for many businesses out there. However, leasing a van has many benefits that are often overlooked.

First things first

Before taking anything into consideration, the first and most important thing to ask is: who from your business will be driving this vehicle? Depending on your employees, insurance rates can vary significantly, and overall liability and exposure costs can also be affected. Whatever the capabilities of your employees and the faith of you and your business in those capabilities, accidents can and do happen and all good businesses should structure themselves around worst case scenarios.

Open to possibilities

The potential of a good van cannot be understated. Vans have so many potential uses in business, even though they are thought of as vehicles for people trade services such as electricians and plumbers, but are also ideal for landscapers, caterers, transport and more. Carefully considering the potential uses of a van against a car is crucial.

A few figures

It is common knowledge that using a van over a car will grant various tax breaks, but the real numbers can be trickier to understand. Vans are taxed at a flat rate of £3,170, whereas car taxation depends on its CO2 emissions. Breaking this down to brass tax, essentially van drivers can expect to pay approximately half the amount of tax as car drivers.

The numbers, of course, can vary so to look at the specifics, here is a handy tax calculator provided by

Buy or Lease?

It can be difficult to choose whether to buy or lease your company vehicle and again this is dependent on the specific situation of your company. It is true that tax paid on a leased vehicle can be deducted fully from your profit statement without any complication, meaning it will save money. There are numerous great options for leasing and many bespoke deals that can be made when it comes to arranging the right lease for you.

Again, the answer to this question will always depend on the aims and the structure of your business but if your business is ready to take the next step and expand its borders to the larger market, then considering leasing a van can be one of the keys to unlock the potential of a more successful business.