Knowledge Bank

Leasing Company Cars: How It Works in 6 Steps

For businesses, leasing company cars can be a smart way to get the vehicles you need without breaking the bank. Not only do you not need to worry about selling the car at the end of the lease term, but you can also take advantage of lower monthly payments and potential tax breaks. 

In addition, leasing companies typically offer additional maintenance and repair services in their contracts, so you won't have to worry about unexpected repairs down the road. Of course, it's essential to carefully consider your needs before signing a lease agreement, as there may be restrictions on how you can use the vehicle. 

But if you're looking for a cost-effective way to get around, leasing company cars may be the right solution for your business. Here’s the process of leasing company cars in six steps. 

Step 1 — Work Out Your Budget

One of the most important things when considering business car leasing is to work out your budget. This will give you a good idea of how much you can afford to spend every month and help you avoid financial difficulty further down the line. 

There are a few different things you need to take into account when working out your budget for business car leasing:

  • Monthly payment cost
  • Fuel costs
  • Insurance costs
  • Maintenance costs.

Once you have considered these factors, you should have an idea of how much you can afford to spend on business car leasing each month. This allows you to determine which vehicles are within your budget and which are not, making it easier for you to decide.

Step 2 — Calculate Your Mileage

Business car leasing is a great way to get a new car for your business without having to tie up a lot of capital. However, one of the things you need to consider when leasing a vehicle is your mileage. 

Most leases have a mileage limit; if you exceed that limit, you will be charged an excess mileage fee. To avoid this fee, it's essential to calculate your expected mileage before signing a lease. To do this, you’ll need to consider: 

  • How often the car(s) will be used for business travel
  • The distance between your office, customers and clients
  • If the car(s) will be for personal use as well as business
  • The average commuting distance for you and your team.

Once you've considered these factors, you'll know how much driving you'll be doing each year and can choose a lease with an appropriate mileage limit.

Step 3 — Choose Your Business Lease Vehicle(s)

When it comes to business car leasing, there are several factors to consider to ensure that you choose the right make and model for your needs. 

First, you must consider what kind of business you run and your typical clientele. If you frequently transport large groups of people or a lot of equipment, you'll need a vehicle with plenty of space that can handle the weight. On the other hand, if you mainly use your car for local errands and meetings, a smaller model might be more suitable. 

You should also consider fuel efficiency, running costs and any special features useful for your business, such as a GPS or hands-free phone capability. Choosing the right car for your business can save you a lot of hassle and money in the long run.

Step 4 — Personalise Your Business Lease

With your budget, mileage and car ready, you can start personalising your business lease. To move on to the next step, simply find the vehicle you’re looking for on the Tilsun Leasing website. Once you’ve found your desired company car, you’ll need to select: 

  • The lease type (personal or business)
  • The number of initial rentals
  • The lease term
  • Your annual mileage.

You can also add a maintenance package to your business lease(s). Our maintenance packages are available for a small additional monthly fee and cover all routine maintenance and servicing. 

Once you’ve provided us with the details of your business lease, we’ll give you a personalised quote. If you’d prefer to speak to a team member about your lease, you can call us on 03330 040 888.

Step 5 — Undergo Credit Checks

Once you’ve received your personalised quote for your business lease(s), you’ll need to provide us with more information about you and your business for credit checks. Credit checks are a standard part of any leasing agreement and are there to ensure you can make the agreed payments. 

To be eligible for a business lease, you’ll need to be registered as a limited company, partnership or sole trader. For the credit checks, you’ll need to provide us with the following information: 

  • Proof of identity
  • Business address
  • Registration number
  • Bank statements
  • Annual net income. 

Most credit checks are swift, and we always do everything we can to make the process as smooth as possible. 

Step 6 — Drive Your New Company Car

You've decided on the perfect lease car and got all the paperwork sorted — now it's time to wait for your new set of wheels to be delivered. We'll get your vehicle ordered and let you know when we receive it so we can arrange delivery at a convenient time.

At Tilsun Leasing, we only deliver on weekdays, and we’ll work with you to ensure that your new company car(s) are delivered at a convenient time. Once we’ve made the delivery, check the vehicle(s) to ensure everything is as it should be and, if it is, get out on the road and start impressing clients. 

Start your business leasing journey today by exploring Tilsun Leasing’s massive selection of car leasing deals. If you have questions about car leasing, contact the Tilsun Leasing team today by calling 03330 040 888 or emailing [email protected]

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