Business Car Leasing Explained
What is business leasing?
Business leasing essentially means renting a vehicle for an agreed amount of time and mileage for a fixed fee. If you are sourcing vehicles for a growing business, business leasing can be a far more cost-effective option than purchasing outright.
Depending on your situation, there are many business leasing products to choose from, and each comes with a different set of benefits and considerations for your business.
In particular, be mindful of contractual stipulations with the potential to lead to extra charges, such as excess mileage, vehicle condition on return (outside the BVRLA Fair Wear and Tear conditions), and early termination.
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What are the key benefits of business leasing?
1. Easy budgeting
Stay in control with clear, predictable monthly costs and low-to-zero upfront cash investment.
2. No unexpected maintenance costs
If you choose the full maintenance option, all servicing is covered in your contract – saving you both money and administrative time.
3. Attractive to employees
They get to drive a brand new, better class of vehicle with no financial ties, no responsibility for servicing or MOTs, and low Benefit-In-Kind rates on eco-friendly models.
4. Reduced liability risk
Unlike 'grey fleets', where employees use their own vehicles for business purposes, business leasing means they are all driving safe and roadworthy vehicles, helping to meet your Duty of Care obligations and reduce liability risk.
What are some popular business leasing solutions?
Further guidance: going electric
Because of the regulatory and tax advantages they offer, electric vehicles are becoming increasingly popular for business fleets. Should you go electric too?
Fleet Funding from Alphabet
We offer a wide range of business fleet finance options – let’s find the one that works for you.
Understanding fair wear and tear
Review the BVRLA's industry-standard definition for what constitutes deterioration to a vehicle caused by normal usage.
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