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Benefits of leasing a car for your business

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There are plenty of benefits to leasing your company vehicles, be it just the one or one hundred. In this article, we are going to delve further in to how a lease (also known as Contract Hire) can benefit your business and how we can help you manage your growing fleet.

Total lifetime cost calculations

Contract Hire is the only product available that allows you to calculate the total cost of your vehicle agreement from the very start, as it allows you to include servicing, maintenance and tyres in your monthly payments. The only additional things you need to consider are car insurance, fuel and who is going to drive it.

Capital allowances

As you do not own the vehicle that you lease, you are able to claim the total cost of your agreement payments against your taxable profits. A nice little tax bonus for your business and profit line.

Road fund license

Contract Hire agreements include the road fund license for the full term of the hire agreement. This is because as you are not the owner of the vehicle, the responsibility falls to the lease company and is paid for and managed by them. Another saving to be had.

VATable payments

If you are VAT registered company you are able to claim back a portion of the VAT, each month, on your vehicle’s payments. The amount that you are able to claim back varies, and that depends entirely upon the way the vehicle is used. If you are leasing a car and it is used exclusively for business use, then you are able to claim back 100% of the VAT. In the event that the car is used for some private use, such as commuting to and from work or private use at the weekend, then you are able to claim back 50% of the VAT.

Commercial vehicles are different though and enjoy the option to claim back 100% VAT, regardless of private or business use.

Managing cash flow

Choosing to lease your vehicle instead of purchasing it out right, means that you can invest your money in growing your company. Payments are made monthly with vehicles available for all budgets.

How we can help

We at Red Kite Leasing, are experts in sourcing you the best contract hire offers for all makes and models of Cars and Vans. With both Personal Contract Hire and Business Contract Hire available, we can source you any vehicle and deliver it right to your door.

Alternatively, we also offer an outsourced fleet management service, saving you the money of hiring someone in house.

To learn more about how we can help, please do not hesitate to give us a call on 01993 773514 or email

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Posted on 14th May 2019 at 8:32 AM

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