Knowledge Bank

The 5 Benefits of Business Car Leasing

Leasing a car for your business can be a great way to save money in the long run, but it's essential to understand the benefits before deciding. If you’re trying to decide whether business car leasing is right for your company, you're in the right place. 

At Tilsun Leasing, we help businesses find the right business car leases every day. This guide will explore some of the benefits of business car leasing and help you decide if it's the right choice for your company. 

Business Car Leasing Benefit #1 — Better Cash Flow Management

One of the most significant benefits of business car leasing is improved cash flow management. When you buy a car, you must pay the entire purchase price upfront, which can strain your business's finances. 

On the other hand, with a lease, you only have to pay a small initial fee followed by monthly instalments. This frees up funds for other purposes, such as investing in equipment or hiring additional staff. 

In addition, at the end of the lease term, you can simply return the car without worrying about selling it. Business car leasing can be an excellent solution for businesses that need to keep their operations lean.

Business Car Leasing Benefit #2 — No Depreciation

With a business lease, you can avoid the depreciation hit that comes with owning a vehicle. Depreciation is one of the biggest losses involved in owning a car, and it occurs as soon as you leave the garage.

However, you can avoid this depreciation with a leased car by simply returning the vehicle to the leasing company when the lease ends. This can be a significant advantage for anyone using their vehicle for business purposes. 

Business Car Leasing Benefit #3 — Access to Brand New Vehicles

When you lease a car for business, you always have access to the latest models. This is because leases typically last for two or three years, after which you can simply return the vehicle and find a new lease. This is ideal if you want to keep up with the latest trends or need a car equipped with the latest features and technologies.

There are several benefits to having the latest models for your company cars, but one of the biggest is that it ensures your team members are safe on the road. Alongside that, driving a brand new vehicle can impress potential clients and exude confidence and success. 

Business Car Leasing Benefit #4 — Tax Benefits

In the UK, business car leasing comes with several tax benefits. First, you can deduct the cost of your lease payments from your taxable income. This can help to reduce your overall tax bill. 

Additionally, if you use your leased vehicle for business purposes, you can also claim the VAT back on the monthly lease payments. This helps to reduce your tax bill. But if you’re considering leasing a vehicle for your business, speak to your accountant to see how you can maximise the tax benefits.

Business Car Leasing Benefit #5 — Make Your Business Eco-Friendly

One of the best things about leasing a car for your business is that it's an affordable way to have electric company cars. One of the biggest concerns about electric vehicles for businesses is the initial cost. But by leasing, you can avoid this cost, pay a low monthly fee and enjoy the benefits of EVs.  

Electric cars are cheaper than fuel-powered cars. You'll save money on fuel costs and won't have to pay for tune-ups or oil changes. They emit zero emissions, which means they don’t contribute to air pollution. Plus, they’re exempt from road tax, so you can save money if you have multiple company cars. 

Find your business car lease today with Tilsun Leasing. If you have questions about the process or want a bespoke quote for your business, get in touch with the team. 

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Lex Autolease
Leasing Broker Federation

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