There are lots of advantages of choosing to lease a car financing, as opposed to purchasing a car outright. When you lease, you won’t have to purchase the new car in one installment of capital. Also, you’ll be avoiding investing in a vehicle that will appreciate as time passes. Additionally, you’ll enjoy the tax advantages of leasing and make money available to invest for other purposes in your business. A van finance company will also reduce the amount of administrative work on your part as they’ll source the vehicle on your behalf and provide you with the most favorable financing offer.
Motor Finance, Taxes and Finance
We’re not accountants, however, we can provide the fundamentals of the tax and leasing process. All rentals are subject to VAT and can be fully offset against income to be used for business purposes.
Did you have the knowledge the fact that renting a vehicle to your business could allow you to take back VAT? In this sense leasing comes with a major benefit over purchasing. In most cases businesses, owners have the right to 100% exemption from VAT on van rental. Additionally, if you are using the van exclusively for business and not for private use the drivers aren’t exempt from the tax on company cars.
There is more information regarding this issue on the official website of the government and of course, consult with your van financing company. Tax deductions can be an enormous amount of savings for your company.
Low deposits
If you choose to finance your vehicle it is only necessary to cover a part of the new vehicle upfront. You can then utilize the money you’ve saved elsewhere in your company. The company that finance your van will provide you with information on the different types of finance for vehicles that are that are available to you. This includes van finance deals that let you split the VAT costs over the course of the contract. That means, you will save more cash upfront.
Depreciation and financing of vehicles
When you buy a car in full, the value of it decreases. But a van financing firm will calculate your payments in accordance with the expected value of the vehicle at the conclusion period. That means you’ve not invested in an asset that is depreciating.
Ownership
The new look of vans is good for your company, so you’ll be happy to be aware that you can upgrade your vehicle with ease. You can also agree to the length of lease you’ll be able to specify on the van you lease.
Based on the terms of the length of your lease for a business van You will have a range of choices for owning the van. If you wish to be the owner of the van at endof the lease, there’s a bargain to do this. If you’re not interested in ownership, think about Contract Hire. Discuss alternatives to end of lease with your van finance provider and benefit from the flexibility that leasing offers.
Menu