Are you looking into a business contract hire, but aren’t sure this is the right option for you? There are many advantages to leasing a car for business use rather than buying one. All should be considered when determining which option is right for you.
When you lease a car, you can upgrade on a regular basis. For those who need to present a certain image for work, this can of great importance. Choosing a business contract hire allows you to do exactly this. There is no long term commitment when you choose this option and many find they prefer this.
A business contract hire costs allows you to drive a car that you typically may not be able to afford. The payments are often lower when you choose this option. If you wish to have a luxury car, but cannot afford the payments if you choose to buy, you may find the payments are within your budget when you lease.
Depreciation is not an issue when you choose to lease a car rather than buying. As the depreciation on a car can be significant, this is a major advantage of leasing over buying.
When you choose to lease a car, the entire monthly lease payment may be able to be written off as a business expense. When you purchase a car for your business, often you will find that you can only write off the interest. Be aware that tax laws change regularly so you need to discuss the tax advantages with your accountant before you make a final decision.
If you are short on funds, a business contract hire can save you money when you first take possession of the car. In many cases, you will only have to pay the first month’s payment and a security deposit and you will be driving away in a new set of wheels.
Maintenance and major repairs are commonly not a problem with leased cars. When a car gets older, it tends to need more in these areas. As you are getting a new car every two or three years, these problems are not an issue. In addition, the factory warranty will likely be in effect the entire time you have the car. Remember this when determining if a business contract hire is right for you.