Car leasing can be a great option for small businesses in the UK looking to acquire vehicles without committing to the long-term costs of ownership. Leasing allows companies to have access to new and reliable vehicles, while also freeing up cash flow and avoiding the maintenance and depreciation costs associated with ownership.
According to a study conducted by the British Vehicle Rental and Leasing Association (BVRLA), small businesses in the UK have been increasingly turning to car leasing in recent years. The study found that the number of small businesses using car leasing services increased by 13% between 2015 and 2020. Additionally, the study found that over 80% of small businesses that lease vehicles plan to continue leasing in the future. These statistics suggest that car leasing has become a popular and viable option for small businesses in the UK, allowing them to access reliable vehicles without committing to the long-term costs of ownership.
However, it’s important to understand the process and considerations involved in car leasing for small businesses in the UK. In this guide, we will walk you through the key steps and factors to keep in mind.
- Understand the Types of Car Leases Available
There are two main types of car leases: Personal Contract Hire (PCH) and Business Contract Hire (BCH). PCH is a lease agreement between an individual and a leasing company, while BCH is an agreement between a business and a leasing company. As a small business owner, you will want to look into the latter, as it is tailored to meet the specific needs of companies.
- Determine Your Budget
Before you begin your search for a lease, it’s important to determine your budget. Consider what monthly payments you can afford and what upfront costs you are willing to pay. Keep in mind that the higher your upfront payment, the lower your monthly payments will be.
- Choose Your Vehicle
Once you have a budget in mind, it’s time to choose the vehicle you want to lease. Consider what your business needs are and what type of vehicle would best serve those needs. Factors to keep in mind include the size of the vehicle, the type of fuel it uses, and any special features you require.
- Research Lease Deals
There are many leasing companies in the UK, each with their own deals and incentives. Do your research and shop around for the best deal that meets your budget and needs. Look for special offers or promotions that may be available, but be sure to read the fine print and understand any additional fees or charges.
- Negotiate Terms
Once you’ve found a lease deal that you’re interested in, it’s time to negotiate the terms of the agreement. Be sure to read the contract carefully and understand all of the terms and conditions before signing. Negotiate any terms you feel are unreasonable or not in your best interest.
- Sign the Lease Agreement
Once you have negotiated the terms and are comfortable with the agreement, it’s time to sign the lease agreement. Be sure to read the document carefully and ensure that all of the terms you negotiated are included.
- Take Delivery of the Vehicle
Once the lease agreement is signed, you can take delivery of the vehicle. Be sure to inspect the vehicle thoroughly and document any damage or issues before you drive it off the lot.
Things to consider when leasing cars in the UK
There are several important factors that small businesses in the UK should consider when leasing cars. First, it’s important to determine the specific needs of the business in terms of vehicle size, fuel efficiency, and any necessary features or amenities. Additionally, small businesses should consider their budget and determine what monthly payments and upfront costs they can afford. It’s also important to shop around and compare lease deals from different companies to ensure that the business is getting the best possible deal. Small businesses should carefully read and understand the terms and conditions of the lease agreement before signing, paying special attention to any additional fees or charges. Finally, small businesses should ensure that they have a plan in place for the end of the lease term, including any potential fees or penalties for excess mileage or damages. By considering these factors, small businesses in the UK can make informed decisions about leasing cars that meet their specific needs and budget.
In summary, car leasing can be a great option for small businesses in the UK looking to acquire vehicles without the long-term costs of ownership. Be sure to understand the types of leases available, determine your budget, choose your vehicle, research lease deals, negotiate terms, sign the lease agreement, and take delivery of the vehicle. By following these steps, you can find the right lease deal that meets your business needs and budget.