How to lease a car through your business

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Business car leasing has become the go-to transport solution for businesses of all sizes in recent years, but little thought has been put toward a simpler alternative. With lower upfront costs and a greater degree of flexibility than buying a car outright, leasing is a great solution for SMEs who may only need one or two cars – but a business car subscription is a much more flexible alternative.

Understanding business car leasing

Put simply, business car leasing is where your business rents a car for a set period – usually two to five years – and hands it back at the end of the contract. It works in the same way as traditional car leasing for private individuals, giving you a way to avoid the huge upfront costs of buying a car outright. This is particularly helpful for small businesses, who may not have the cash flow to support a purchase.

There are several types of business car leases available, but two main ones are an operating lease and a finance lease. With an operating lease, you just lease the car and return it at the end of the contract. A finance lease acts more like a loan, with your monthly payments going towards eventually owning the vehicle at the end of the contract term.

There are several benefits, financial and otherwise, attached to business car leasing. Instead of having to find the money to pay for a vehicle outright, your business will only need to pay an upfront deposit, which is usually either a percentage of the vehicle’s value or the equivalent of several months’ lease payments. This frees up capital to invest in growing your business.

You’ll never need to worry about depreciation, as the vehicle remains in possession of the leasing company, and you’ll have predictable monthly payments for easy budgeting (and even better, they’re tax-deductible). Not only that, but you’ll have the latest vehicle models, which will present the right image for your business, as well as being reliable and therefore unlikely to need pricey repairs.

How to get a car on a business lease

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Understand your business needs

Taking out a business car lease starts with understanding what you need from a car, now and in the years ahead. For example, think about how much you’ll be using it, how many people will drive it and what your ideal budget is. It can be helpful to create a checklist of essential features, from particular functions (such as built-in sat nav) to fuel type, efficiency and vehicle size. 

Research leasing companies

With a clear idea of what you’re looking for, you can begin researching reputable leasing companies. Take a look at those available in your local area or region and check out what people are saying about them in online reviews. In particular, great customer support and transparent lease terms are important. After checking their credentials, also look into what they offer in terms of servicing packages, lease periods and vehicle options to check these match your business needs.

Negotiation and paperwork

Having found the right company and car, there will be some paperwork to prepare. This will typically cover your credit history (the better your score, the better the lease terms you’ll be able to secure), business registration and financial statements, and having digital copies of these to hand will help speed things up.

When negotiating the terms of your lease, be sure to discuss your obligations on signing the contract. These are likely to include mileage limitations, with penalties to pay if you exceed the agreed limit, and you may be subject to wear and tear policies or maintenance packages, either mandatory or optional. Read the lease agreement carefully before signing, keeping a look out for hidden fees or penalties, and consider having a legal professional look over it for you.

How Drive Fuze car subscriptions offer a better alternative

While business car leasing is a great option for small businesses, there’s an even better alternative. A car subscription from Drive Fuze offers much more flexibility than a traditional lease – something that’s particularly useful to smaller businesses, who often need to be agile with limited cash flow. Our competitively priced subscription plans can be tailored to your business, and come with lots of benefits:

• A great choice of vehicles: our diverse fleet gives you plenty of choices, from compact city cars to eco-friendly electric vehicles
• All-inclusive: your monthly subscription fee includes all running costs except petrol and fuel, so there’s no need to budget for things like insurance, tax, maintenance and breakdown cover – leaving you free to concentrate on other areas of your business
• Low, refundable deposit: the only upfront cost is the equivalent of one month’s subscription fee, which you get back when you hand the car back
• Total flexibility: with a rolling monthly subscription, you’re not tied in for years at a time – you can swap or upgrade cars or cancel your subscription altogether whenever you need to, without penalty. This also saves you money, because you can return the car when you no longer need it rather than paying for an idle car
• Outstanding customer service: our top-notch support team is on hand to help with any queries or issues throughout your subscription, and they’ll even take care of parking fines for you!

Signing up for a small business car subscription is simple: just choose the vehicle that best suits your needs and then fill in our user-friendly online to tell us about your business and personal details. We’ll give you a quick call to confirm, and then our fast approval process means you’ll be on the road in no time. If you choose our insurance, we’ll deliver the car to your home address, and if you take out your insurance we can drop it off at your business premises.

Making an informed decision on business leasing

Business car leasing is a good option for small businesses, removing the need for a large upfront investment and giving you access to the latest models for less – albeit on a contract you’re tied into for years at a time. A Drive Fuze business car subscription goes a step further, with a low, refundable deposit and all the running costs rolled into a single convenient monthly payment that you can cancel at any time. 

As the preferred choice for business car subscriptions in the UK, Drive Fuze gives your business a cost-effective, stress-free solution to your transport needs. Browse our cars to get started with your subscription, or call us on 0330 118 0947 for more information.