About Personal Car Leasing
Is vehicle leasing the right option for me?
Leasing is a rental agreement that allows you or your Business the use of a car or van for a set period of time at a fixed monthly price. It is an alternative, and often cheaper, when compared to buying a new vehicle with a bank loan or hire purchase
It also manages the projected depreciation over the fixed term and you would have complete piece of mind that there would be no negative equity or concern about disposing of the vehicle at the end of the Contract-compared to a Lease Purchase or a HP type agreement.
What is the difference between business and personal leasing?
If you are a Limited company, partnership, sole trader or LLP, you may be eligible for business leasing.
Occasionally, our suppliers offer special rates for business customers only. This can result in a difference in price between business and personal prices.
There are also offers positive tax implications. You can reclaim up to 50% of the VAT element (for cars) or up to 100% (on commercial vehicles) on a business contract hire agreement.
If you are applying for vehicle finance as a private individual, you may be eligible for personal leasing. Personal contract hire is similar to a business contract hire agreement with the exception of reclaiming the VAT. All personal contract hire prices include VAT.
In some cases, personal leasing may actually be the appropriate option for certain businesses. For example, if you are a self-employed person who has recently just started your own business, you may not have sufficient financial documentation e.g. Business Accounts required by most funders for a business lease. In this case, personal leasing may be the better option.