subject: Car Leasing- Takes The Benefits Of Car At Low Payment [print this page] If you are a business owner and wish to hire a car or any other four wheeler on lease or rent than no need worry as there are many options to meet your preference and budget. It is not only for Business owner even for a private individual also who are looking for a car on lease or rent.
Private individuals or business can hire cars on a monthly basis on business contract hire or business car leasing with payments on a monthly or yearly basis.
A business contract hire refers to a car operating when leased or rented by a business. Monthly contracts usually tend to be for 6 months or 12 months.
The representative and standardization for the lease of cars on hire is known as the British Vehicle Rental and Leasing Association or (BVRLA)
There are many small and large businesses with fleets of cars for rent that specialize in the leasing of cars to small medium and large corporations. Presently there are nearly 700,000 cars which are on business contract hire in the Uk alone.
Business rent cars for either transportation purposes or as perks to their employees. The type and luxury of car hired is usually dependent on the position of employee in the organization. Cars are also added to the employee contract as a type of rider or benefit for joining a corporation.
In order to lease a car, an organization can either approach a broker or contact a Car leasing business directly. If in the case of contacting a broker there is an extra added percentage of cost on the contract as commission which is payable at the start or end of the contract.
A good way to avoid a brokers fee is to contact and engage business contract car rentals directly.
A benefit for Vat registered companies is that if they were to engage a car on rent for business car leasing, they can claim 50% of the Vat as a finance element. So business car leasing also has its Tax claim advantages for businesses.
Cars can either be engaged in contract with or without a maintenance agreement. A maintenance agreement may cost a little more but is beneficial for car servicing and maintenance at a subsidized cost or within the contract amount saving the business money. Contracts also come with a vehicle rescue cover in case of breakdowns.
No matter the period of leasing a vehicle always remains the property of the Leasing Company. Most company cars are Business contract leased as this is a great budgeting technique and bypasses the need for businesses to buy they own vehicles for employee use. Along with the Tax benefits and hassle free nature of business car leasing, hiring cars by businesses is very advantageous and convenient for all business sizes.
by: Graham Lwis
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