Depreciation Happens Very Fast Therefore Business Car Leasing Makes More Sense

You might be wondering if it's worth leasing a car or a fleet of cars for your business needs. In the UK, there isn't really a history of car leasing on a personal basis, and companies usually opt for leasing a fleet of company cars rather than one or two. However, if you sit with your accountant and go through the maths, you might discover that with the deals on offer at the moment, and calculating the depreciation value per annum of a vehicle or a fleet of them, leasing may be the better option.

You can lease cars direct from the manufacturer, and this is something to seriously consider. Companies such as Renault will offer you a 24 hour test drive on their vehicles if you are seriously considering leasing one. Other manufacturers are also offering good leasing deals at the moment in order to beat the global recession. Buyers are not falling over themselves to buy new cars in the UK right now though.

Leases can be obtained on more or less the whole range of cars on the market, and are usually delivered to the address you supply. You can choose to pay for the maintenance of your chosen vehicle when you sign the leasing agreement and typically this will be an extra 23 pounds a month on top of the leasing fee. The usual maintenance agreement is for an annual service and replacement of parts that have been subject to wear and tear. Damage to the car is not usually included in these agreements. You have to decide whether or not such a package is worth your while. On certain models, the wear and tear agreement will not cover exhaust systems and tyres, so you'd need to read the small print and ask your leaser about this.

Lease prices vary depending on the model of vehicle you lease, and can start as low as 100 pounds a month. If you are thinking of leasing a more upmarket car, then you can expect to pay a higher fee for the privilege.

There is usually an excess mileage clause, and the standard mileage stipulated in some leases is 10,000 miles, so you might need to negotiate a better deal with the leaser. If you exceed the mileage agreed, the finance company you leased the vehicle from will invoice you for the extra mileage when the car is returned. Of course, as most leased cars are brand new, you get a three year warranty on the vehicle from the dealer the car was purchased from.

Given the rate of depreciation of a new vehicle, it may well be a better option for firms to think seriously about leasing rather than buying vehicles. You can go through a dealership, or deal directly with the manufacturing company of a particular make of car. Shop around and see what you are offered. It might be surprising to find the savings you can actually make.