In the modern days, car leasing business is gaining more popularity as there are more and more new businesses setting up and created a demand for this. Though at the end of the lease the client do not own the car but leasing a car could serve all other things similar to own car. The businesses incur low cost by leasing a car than buying a car. The reasons, why business car leasing is a trend for the start up or even individuals are many.
Less cost in Lease
The cost plays main role in deciding whether buying a car or leasing a car. The cost spread over years to maintain cash flow in the business when leasing and is much more less than emi for car. For small businesses leasing allows free cash flow and keeps the business successful.
Expensive car is affordable
While leasing car individuals or businesses can take lease even a very expensive cars like Audi, BMW. Owning these cars would put so much pressure on the pocket while leasing would be so affordable and cost is very less. Leasing an expensive vehicle is always beneficial to the business where it represents our company.
In the business purpose trip, the business car leasing will be very much beneficial as the fuel cost can be claimed for tax benefits. The travel costs can be reimbursed for the business use. But these are to be strictly for business purpose and the evidence are to be collected and kept safely as they are audited. The personal use cannot be claimed for any tax benefits.
Offers and Incentives
The car leasing companies offers many benefits like incentives to the clients who order in a group. This is beneficial for both clients and also the company. For example if client order is for 10 car lease, the offer would cost less when compared to 1 car lease order.
The lease cars are with completely covered with insurance. It will have coverage 24/7 irrespective of region. They will also have road assistance which could be beneficial to the clients any time even if running out of fuel or break down. The wear and tear of the vehicle is also covered in the trip hence the client need not worry about it.
Half of your Value Added Tax or VAT on leasing can be availed and full repay can be got on maintenance VAT. This is a major benefit to businesses.
First timers for lease would find the process confusing as there would be lot of paper work around it. The leasing company would make you sign to ease the whole process. But understanding the process and rules is very importantbefore going into it.