The benefits of car leasing for businesses

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For SMEs and large corporations alike, business car leasing has been the mainstay vehicle solution. Cost-effective and flexible, car leasing brings several major benefits compared with buying a car outright, from freeing up capital to reducing running costs. Let’s take a look at all the advantages – and why a car subscription is an even better option.

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The financial benefits of leasing a car for business

Free up capital

Arguably the biggest financial benefit of business car leasing is that it removes the need for large upfront capital investments. Instead of finding the money to finance a purchase, leasing means your business only has to pay a deposit upfront – usually the equivalent of a few months’ lease payments, or 10% of the vehicle’s value. This frees up capital to invest in other areas of your business, or simply for maintaining a healthy cash flow.

Predictable monthly expenses

Budgeting is easier when you have fixed expenses, and the set monthly fee for leasing a car makes your outgoings more predictable. This helps you plan your finances effectively, keeping your cash flow under control.

Avoiding depreciation costs

Depreciation is a financial burden for any business purchasing vehicles outright, but not when you lease. Ownership of the vehicle remains with the leasing company, meaning you can use new and nearly new vehicles without worrying about resale value.

Tax savings

Lease payments are tax-deductible business expenses, which means you can use them to reduce your taxable income. Not only that, but if your business is VAT registered, you can claim VAT back from your monthly lease payments. You may also be eligible for tax incentives if you opt for leasing an environmentally friendly vehicle with low emissions.

Reduced running costs

Newer vehicles typically have lower running costs thanks to their fuel efficiency and reliability. While purchasing these newer models upfront may be prohibitively expensive, leasing puts them within an affordable range, saving money. Many also come with maintenance and service packages, which will save on the cost of any unexpected repairs.

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Operational and other advantages of business car leasing

Flexibility in vehicle management

For businesses looking for greater flexibility from their fleet, leasing is a great alternative to buying vehicles outright. With leases available for as little as 18 months, this option makes it easier to grow or scale back your fleet as the need arises.

Reduced admin burden

Many leasing companies take care of certain aspects of your vehicle-related admin for you, such as maintenance, servicing and paperwork, which means less admin time for your business. You’ll often have one point of contact for all car issues, simplifying fleet management.

Access to the latest technology

With leasing being an affordable way to access the latest car models, your business will enjoy the benefits of up-to-date technology and safety features, making your fleet more reliable and safer for your employees. They’ll also have more fuel-efficient technology, which is good news for businesses with ambitious corporate sustainability goals.

Enhanced employee satisfaction

Giving your employees the latest vehicle models is a great way to improve job satisfaction and morale, and leasing puts these cars within reach financially. Not only that, but it gives you the ability to offer your employees a wider range of vehicles that they’ll feel proud to drive around in.

A positive image of your business

Finally, driving around in new or nearly new vehicles gives your business a favourable image, particularly when attending client meetings. Having reliable, well-maintained vehicles shows your company’s attention to detail and professionalism, instilling confidence in prospective clients and customers.

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Why Drive Fuze car subscriptions are a superior alternative

While business car leasing comes with lots of benefits, there are even more to be found in a business car subscription from Drive Fuze. Our bespoke subscription packages can be tailored to your business so that they exactly match your requirements. Rather than locking you into a contract for years at a time, you can change cars or cancel at any time without penalty, giving you the flexibility to make adjustments when business conditions dictate. This means you can save money by only using vehicles when you need them.

You’ll have a wide range of vehicles to choose from, including the latest eco-friendly electric cars, which enhance your image. Even better, our competitive pricing wraps all the running costs into a single, easy-to-budget monthly fee, including maintenance, insurance, breakdown cover, repairs, tax and tyres. 

Just one month’s refundable subscription fee is due upfront, and you’ll get it back when you hand the car back. Our superb customer service keeps your subscription running smoothly, and we’ll even take care of PCN and fine management, reducing your admin burden.

Signing up for a Drive Fuze car subscription is easy. Simply browse our vehicles to find the model that best suits your business needs, fill in a user-friendly online form and we’ll do the rest. We pride ourselves on fast approval and delivery times, so we’ll have you on the road in no time. We’ll deliver the car to your business premises if you take out your insurance, or to your home address if you go with the insurance in our all-inclusive package.

Making an informed decision on business leasing

Business car leasing brings several financial and operational advantages to companies of any size, from convenient fleet management to removing depreciation worry. A Drive Fuze business car subscription is even more flexible, with all the running costs included for straightforward transport budgeting. With no deposits, comprehensive service packages and the ability to hand the car back whenever you don’t need it, car subscriptions offer a modern, fully flexible alternative to business car leasing.

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.

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